Policy Updates

On November 11, 2024, the Dutch government announced plans to reduce NGO funding by over 70%, cutting the budget from EUR1.4 billion (US$1.5 billion) from 2021-2025 to EUR390-EUR565 million (US$424-$614 million) for 2026-2030.

This EUR1 billion (US$1.1 billion) cut reflects the government’s goal to streamline spending and reduce NGO reliance on public funds.

In a letter, Foreign Trade and Development Cooperation Minister Klever outlined key changes in the new NGO funding policy framework:

• Higher independence: NGOs must generate at least 50% of income independently (up from 25%) to qualify for grants;
• Local empowerment: focus on local NGOs and grassroots initiatives in low-and middle-income countries while avoiding complex consortiums;
• Priority areas: health (e.g., combating HIV/AIDS, ending FGM), trade (e.g., promoting women’s entrepreneurship), and human rights (e.g., supporting vulnerable groups and female human rights defenders); and
• No lobbying funding: No grants will support lobbying within the Netherlands.

This policy has received criticism from NGOs. For example, Partos, a leading development cooperation network, called the cuts short-sighted and warned of damage to the Netherlands’ reputation as a global leader and the impact on global challenges like poverty, health, and climate action. Rutgers Internation warned the cuts threaten SRHR, particularly for women, girls, and marginalized groups.

The NGO funding cut coincides with broader reductions to Dutch ODA, including EUR3.4 billion (US$3.6 billion) from 2025-2027, and the decoupling of ODA from GNI, resulting in a EUR2 billion (US$2.2 billion) shortfall through 2029.

Parliament began debating the Minister’s budget on November 14, 2024, with a final decision expected on November 20.

On October 25, 2024, Minister for Climate and Green Growth Sophie Hermans shared the Netherlands’ priorities and goals for the upcoming COP29 climate conference in Azerbaijan.

Key objectives include:

• A new and inclusive international climate finance target that involves more contributors beyond traditionally HICs, aiming to scale finance for both adaptation and mitigation in LICs;
• Advancing carbon market regulations with a robust framework under Article 6 of the Paris Climate Agreement to ensure quality and transparency, and prevent double counting of international carbon emissions;
• Advocate for new climate adaptation indicators to help countries track progress, with a focus on integrating water management expertise in global strategies, food security, and safeguarding vulnerable communities;
• Advocate for a renewed Gender Action Plan to promote women’s and marginalized groups’ roles in climate decisions and initiatives to make climate action more inclusive;
• Promote sustainable transport and a circular economy with policies to reduce waste, support green technology, and improve energy efficiency. This includes backing international coalitions and frameworks for sustainable mobility, such as zero-emission vehicle alliances; and
• Advance the Dutch Kingdom’s Climate Agenda Support for Caribbean islands by recognizing their unique vulnerabilities to climate adaptation and stressing the need for technical assistance and climate finance.

The Netherlands aims to use diplomatic partnerships, financial commitments, and technical expertise in water and energy to lead these initiatives, working closely with EU counterparts and other like-minded nations to build consensus and drive action.

On October 2, 2024, the Dutch International Climate Coalition presented its position paper with key recommendations for the Dutch government to promote climate justice at COP29, endorsed by 20 civil society organizations, including Greenpeace, Save the Children, Oxfam, and the WWF.

The coalition urges the Dutch government to prioritize the following topics at COP29:

• Inclusive Negotiations: effective, transparent negotiations that curb fossil fuel industry influence and ensure civic space, especially for marginalized groups;
• Equitable Climate Finance: a needs-based financial goal post-2025, prioritizing grants over loans and establishing new funding sources based on equity and the "polluter pays" principle;
• Mitigation and Just Transition: ambitious climate policies, fossil fuel phase-out, and social protections for workers during transitions;
• Adaptation: robust frameworks, linking climate and biodiversity goals, and increasing public finance for long-term resilience; and
• Gender Equality: integrating gender justice into climate policies, enhancing the Gender Action Plan with clear goals, and ensuring adequate resources.
  
  The Dutch International Climate Coalition is an informal collaboration of CSOs in the Netherlands that strives for climate justice through Dutch climate policy and commitments in international climate negotiations.

On September 20, 2024, global leaders gathered for the 79 ^th UNGA, the Kingdom of the Netherlands’ contributions focused on key foreign policy themes relating to sustainable policies, human rights protections, and effective multilateral cooperation.

The Summit of the Future, held on September 22-23, 2024, served as a platform for nations to address not just current challenges but also the complexities of tomorrow. As a co-facilitator alongside Jamaica, the Netherlands played a crucial role in shaping the Declaration on Future Generations, a key outcome of the Summit and part of the Pact for the Future.

This declaration includes several commitments:

• Urgent action to tackle environmental challenges;
• Establishing an envoy for future generations to ensure meaningful youth participation in shaping global policies; and
• Investments in quality education and digital literacy to bridge existing divides.

Permanent Representative of the Kingdom of the Netherlands to the United Nations Yoka Brandt highlighted that this Declaration marked the first time countries at such high political levels collectively committed to considering the interests of future generations in their policy-making processes.

Advocacy for Human Rights and LGBTQI+ Protections:

On September 23, 2024, Minister of Foreign Affairs Caspar Veldkamp reaffirmed the Netherlands’ commitment to human rights during the LGBTI Core Group event. He emphasized the importance of international protections for LGBTI individuals and non-discrimination.

Reforming multilateral institutions for peace and the SDGs:

In his address at the UN Security Council Open Debate, Minister Veldkamp also underscored the Netherlands’ dedication to international peace and security, especially in supporting Ukraine against Russian aggression. He called for strengthening and reforming the UN and UN Security Council to better promote global peace. Prime Minister Dick Schoof echoed this sentiment in his UNGA speech, expressing support for proposals to reform the UN Security Council for better geographical representation, including advocating for a permanent seat for an African nation.

Ambassador Brandt also explained that an important part of the Pact for the Future is to enhance the effectiveness of multilateral organizations in achieving the SDGs, including decisive action on climate change.

On July 23, 2024, Dutch Prime Minister Dick Schoof announced the nomination of Wopke Hoekstra for another term in the European Commission (2024-2029).

Schoof emphasized the importance of continuity and experience in the Commission when communicating the renomination to the Dutch House of Representatives. EU Commissioners for 2024-2029 are expected to be approved by the European Parliament in October 2024 and to start their term in November 2024.

Hoekstra has been serving as an EU Commissioner for the European Green Deal since October 5, 2023. Prior to this, he served as the Dutch Minister of Foreign Affairs and Vice Prime Minister until September 2023.

On July 3, 2024, following the swearing-in of the new Dutch cabinet, Dutch Prime Minister Dick Schoof announced the government declaration in the House of Representatives, highlighting key policy areas and approaches for the cabinet.

Schoof reaffirmed the commitment to the EU and NATO as the cornerstone of the Netherlands’ security and prosperity. He pledged continued support for Ukraine against the Russian invasion and committed to enshrining the NATO standard of 2% of GDP defense spending into law.

Schoof emphasized reducing dependence on external sources and enhancing national resilience through strategic autonomy in energy, food security, and raw materials. He committed to honoring all existing international treaties and minimizing additional national measures, especially in nature and climate policies, to maintain competitiveness.

Schoof also mentioned proactive engagement with the EU to address national concerns and seek exceptions where agreements disproportionately impact the Netherlands, particularly in migration and agriculture.

On June 13, 2024, the Netherlands announced the distribution of its cabinet posts, including the creation of three new ministries: Asylum and Migration, Housing and Spatial Planning, and Climate and Green Growth.

The Dutch government also renamed the Ministry of Agriculture, Nature, and Food Quality to the Ministry of Agriculture, Fisheries, Food Security, and Nature. The Minister for Foreign Trade and Development Cooperation will become the Minister for Foreign Trade and Development Assistance. These changes are meant to mirror the new government’s priorities.

The PVV was allocated five ministers, the VVD and NSC four, and the BBB two. Designated Prime Minister Dick Schoof does not represent any party.

Ministerial appointments with relevance to development included:

• Minister of Climate and Green Growth: Sophie Hermans ( VVD);
• Minister of Finance: Eelco Heinen ( VVD);
• Minister of Economic Affairs: Dirk Beljaarts ( PVV);
• Minister of Agriculture: Femke Wiersma ( BBB);
• Minister of Education: Eppo Bruins ( NSC, CU);
• Minister of Asylum and Migration: Marjolein Faber ( PVV);
• Minister of Health: Fleur Agema ( PVV);
• Minister of Foreign Affairs: Caspar Veldkamp ( NSC); and
• Minister for Foreign Trade and Development Assistance: Reinette Klever ( PVV).

The PVV’s Ministers for Foreign Trade and Development Assistance Reinette Klever and Asylum and Migration Marjolein Faber sparked controversy due to past statements regarding omvolking, or the ‘replacement theory’. Faber and Klever distanced themselves from past use of the term but reiterated concerns about demographic change.

Candidate ministers and secretaries will present themselves in public hearings to the House of Representatives. The new cabinet is expected to be sworn in on July 2, 2024.

On May 28, 2024, the Netherlands and Dutch Caribbean countries, including Aruba, Curaçao, Sint Maarten, Bonaire, Saba, and Sint Eustatius, created a joint climate agenda to address climate change which focuses on enhancing cooperation, financing, and knowledge sharing.

Key areas include expanding solar and wind energy, reducing fossil fuel use, and improving water management systems. Each island will develop specific climate plans, supported by Dutch funding.

The second Caribbean Climate and Energy Conference will be hosted by Curaçao and the Netherlands in October 2024 to further progress and cooperation in the region.

On May 16, 2024, the four Dutch coalition negotiating parties– PVV, VVD, NSC, and BBB - agreed to an outline agreement titled Hope, Courage, and Pride, stating that the new Dutch government will cut two-thirds of the current development budget over 2025-2027, or EUR5.9 billion (US$6.4 billion) over the period.

The outline focuses on ten key areas, primarily concerning improving Dutch citizens' livelihoods and social well-being and restricting asylum seekers and migration. The outline states that the Netherlands will contribute to food security and water management in other countries to improve stability, as well as support the regional hosting of asylum seekers to prevent further migration to the Netherlands.

The cuts are slated to start with EUR350 million (US$380 million) in 2025, increasing to EUR550 million (US$598 million) in 2026, and reaching EUR2.5 billion (US$2.7 billion) annually from 2027.

Opposition GroenLinks MP Danielle Hirsch contrasted the cuts with the statement's assertion that the Netherlands is one of the wealthiest countries in the world. Eleven development organizations in the Netherlands released a statement expressing their disapproval and concerns about these unprecedented cuts. Partos asserted that these cuts will damage the Netherlands’ international standing and interests. It calls on the coalition to avoid these cuts and continue investing in international cooperation.

Informants van Zwol and Dijkgraaf completed their task with the outline agreement and recommended appointing van Zwol as the next formator. Van Zwol expects to appoint ministers and state secretaries within four to five weeks to form the new cabinet and flesh out the outline agreement.

On May 8, 2024, the Dutch government reported on the implementation and progress of its International Climate Strategy, launched in October 2022, and concluded that, due to ODA reallocations, it will be impossible to achieve the original goal of reducing climate vulnerability for four million people and providing safe, climate-resilient water and sanitation access for seven million people by 2030.

Dutch Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher and Minister for Climate and Energy Rob Jetten wrote that the Netherlands is intensifying programs promoting climate resilience, focused on WASH and urban climate resilience despite the setbacks. The ministers noted that the Netherlands increased its focus on mobilizing climate finance, particularly for LICs, through mechanisms like the DFCD.

The Netherlands has invested EUR110 million (US$120 million) in the NL2120 knowledge and innovation program to promote global nature-based solutions, financed through the National Growth Fund. The Netherlands also contributes to the international goal to mobilize US$100 billion annually for climate action in LICs. In 2023 the Netherlands also increased its contribution to the DFCD, with plans for a follow-up fund in 2025, and contributed EUR15 million (US$16 million) for the startup costs of the loss and damage fund established at COP28. Schreinemacher and Jetten noted that the Netherlands is focusing on mobilizing private climate investments and promoting public-private partnerships.

The ministers also highlighted that the Netherlands is boosting its international collaboration through programs and partnerships like the Global Water Security and Sanitation Program with the World Bank, the Water Resilience Trust Fund with the ADB, and initiatives with UNICEF and FAO.