Policy Updates

On December 9, 2023, during COP28, the Dutch government launched an international coalition to phase out fossil fuel subsidies, comprising 13 countries: Antigua and Barbuda, Austria, Belgium, Canada, Costa Rica, Denmark, Finland, France, Ireland, Luxembourg, the Netherlands, and Spain.

Research by the Dutch government found that half of all Dutch fossil fuel subsidies are tied to international agreements. This international coalition was created with the intention of phasing out fossil fuel subsidies while preventing greenhouse gas emissions shifting to other parts of the world.

The coalition noted three main pillars:

• Transparency: all member countries publishing an overview of their fossil fuel subsidies by COP29 in 2024;
• International agreements: identifying and addressing international barriers to phasing out fossil fuel subsidies; and
• National action: encouraging international dialogue to share knowledge, develop national strategies, and join action to minimize carbon leakage.

In the coalition’s joint statement, various international organizations including the IMF, OECD, WTO, and World Bank were asked to develop a comprehensive methodological framework to identify the scope of international fossil fuel subsidies and to develop guidance for national phase-out strategies.

On December 4, 2023, Canada announced a pledge of CAD34 million (US$25 million) for the Special Climate Change Fund, hosted by the GEF.

The announcement was part of a joint statement released by Canada and the governments of Belgium, France, Germany, Norway, Spain, Sweden, and the UK during COP28. Canada’s pledge to the fund will support in accelerating climate change adaptation in SIDS and catalyzing technology transfer, innovation, and private sector engagement for adaptation.

On December 2, 2023, the EU institutions, the EIB, the EBRD, and the Member States that comprise Team Europe pledged EUR20 billion (US$21.8 billion) for clean energy partnerships with African partners.

The funding announcement listeed EUR3.4 billion (US$3.7 billion) in grants and covered the period from 2021-2027. The project, AEGEI, aims to produce over 50 Gigawatts of renewable energy by 2030.

12 EU Member States contributed to the funding. No language regarding specific partner countries was included in the announcement.

On December 1, 2023, Spanish Prime Minister Pedro Sánchez announced a 50% increase of Spain’s annual contribution to climate funding, bringing it to EUR1.4 billion (US$1.5 billion) at COP28.

Sánchez also announced EUR20 million (US$22 million) to a new fund for climate disasters and EUR2 million (US$2 million) to the Amazonia Siempre initiative for tackling deforestation.

At COP28’s plenary session, Sánchez spoke about the importance of increasing funding to fight climate change, underlined the importance of mitigation, and emphasized the strategic role of advancing adaptation in partner countries. He called for a profound improvement of the climate financial architecture and a transformation of the global development model.

Sánchez also announced that the first high-level meeting on droughts, aimed at publicizing the work of the International Drought Resilience Alliance, will take place in Barcelona in September 2024. Sánchez underlined Spain’s strong commitment to combating climate change, stressing its contribution of EUR225 million (US$246 million) to the GCF.

On September 21st, 2023, acting Spanish Prime Minister Pedro Sánchez addressed the 78^th UN General Assembly and expressed Spain’s commitment towards multilateralism and the 2030 Agenda for sustainable development.

Sánchez focused his speech on accelerating the global response to climate change, particularly on climate adaptation and mitigation. Clmiate commitments made in the speech included:

• EUR225 million (US$241 million) to the Green Climate Fund;
• EUR20 million (US$21 million) to the Adaptation Fund; and
• EUR17 million (US$18 million) to other multilateral instruments working on climate change.

These pledges will be reiterated at the UN Climate Change Conference at COP28, which is slated to take place in the UAE in November 2023.

Sánchez also underlined the need to strengthen multilateral institutions to advance the implementation SDGs and foster gender equality, food security, democracy, and human rights worldwide. He reiterated his commitment to increase development finance and emphasized that Spain was the first donor to announce that 20% of its SDRs would be allocated to low- and middle- income partner countries.

On July 28, 2023, the EU announced EUR466 million (US$516 million) in funding for the Philippines under the Global Gateway initiative.

The funding was announced by European Commission President Ursula von der Leyen during a meeting in Manila with President Ferdinand Marcos. Von der Leyen stated that the funding would support the development of circular economic policy to manage plastic waste in oceans. In addition to policy development, the funding also targeted technology and knowledge transfers to support implementation.

Of the total Team Europe contribution, EUR64 million (US$71 million) was allocated from the EU budget. The remaining EUR402 million (US$445 million) comprised contributions from individual member states, including France, Germany, Spain, and Finland.

On July 13, 2023, the Spanish Minister of Foreign Affairs, European Union, and Cooperation José Manuel Albares and the director of AECID Antón Leis participated at the EU - CLACS Society Forum organized in Brussels, Belgium.

The meeting took place in the framework of the 3^rd EU- CLACS Summit, held from July 17-18, 2023. The summit prioritized innovative solutions for sustainable and inclusive development in the LAC region.

Albares highlighted that Spain, the EU, and the LAC region share a common approach in the areas of sustainable development, democratic values, human rights, peace, and the environment.

The EU - CLACS Civil Society Forum gathered government officials, development NGOs, youth collectives and other civil society groups. The civil society forum provided the EU - CLACS Summit with ten specific recommendations on gender equality, global health, the caring economy, democratic participation, digitalization, climate change, and education.

On July 10, 2023, Spanish Minister of Foreign Affairs, European Union and Cooperation José Manuel Albares participated at the Fourth General Assembly of the Sahel Alliance held in Nouakchott, Mauritania, to hand over Spain’s presidency of this institution to Germany.

Chaired by Spain from June 2020 to July 2023, the Sahel Alliance is a multilateral organization that gathers partner countries from the Sahel, EU donor countries, the World Bank, the AfDB, and the UNDP with the objective of fostering sustainable development and human security in the region.

During the meeting, Albares highlighted achievements from Spain’s three-year presidency of the Sahel Alliance. He underlined the Spanish multipronged commitment to furthering human development, security, and climate change adaptation. In regard to the latter, he foregrounded measures aimed at improving partner countries’ resilience against desertification, severe drought, and floods, as the most important milestones.

Albares also reviewed the AECID's recent interventions to foster health basic services and women empowerment and food security in the region.

On July 1, 2023, Spain assumed the rotatory, six-month Presidency of the Council of the EU.

On June 15, 2023, Prime Minister Pedro Sánchez outlined in a public address the main priorities of Spain’s EU Presidency. The priorities included:

• Reindustrializing the EU and ensure its open strategic autonomy;
• Advancing green transition and climate adaptation;
• Promoting greater social and economic justice; and
• Strengthening European unity.

Key events during the Spanish presidency from July-December, 2023, include:

• July 17-18, 2023, Summit of EU and Community of Latin American and Caribbean States in Brussels, Belgium;
• July 25-26, 2023, Meeting of Directors of Development Agencies in Madrid, Spain;
• September 4-5, 2023, Informal Meeting of Development Ministries in Cadiz, Spain;
• October 6, 2023, Informal Meeting of Heads of State or Government in Granada, Spain;
• October 26-27, 2023, Informal Meeting of General Directors for Development in Madrid, Spain; and
• December 15, 2023, European Council in Brussels, Belgium.

On June 1, 2023, EU Commissioner for International Partnerships Jutta Urpilainen announced EUR16 million (US$17 million) for development programs in Costa Rica.

Urpilainen announced the funding at the launch of the EU’s Multiannual Indicative Programming with Costa Rica, which will last up to 2027. The program, valued at EUR14 million (US$17 million), was launched with three priorities:

• Decarbonizing energy and transportation sectors;
• Increasing digital infrastructure; and
• Providing support for managing migration in Costa Rica.

In addition, Urpilainen pledged EUR2 million (US$2 million) for a new biodiversity program to be administered by the Spanish AECID. The program was developed to address flaws in current biodiversity conservation policy, improve biodiversity data collection and ecosystem restoration, and improve ecosystem services.