Policy Updates

On 22 July 2025, Germany presented its third Voluntary National Review, reaffirming its commitment to accelerating implementation of the 2030 Agenda at the 2025 High-level Political Forum on Sustainable Development in New York.

Represented by Parliamentary State Secretary Dr. Bärbel Kofler and her colleague from the Federal Environment Ministry Rita Schwarzelühr-Sutter, Germany emphasized the need for stronger international cooperation in the face of climate change, geopolitical tensions, and economic shocks.

The German delegation highlighted national progress on SDG 5 (gender equality) and SDG 7 (renewable energy), attributing these achievements to broad participation from civil society, youth, academia, and local governments. Germany also hosted a side event on SDG 14 (ocean protection), which explored pathways to scale marine conservation and promote sustainable maritime economies.

Citing the UN’s 2025 SDG report, which warns that only 20% of goals will be met without acceleration, Germany stressed that global partnerships and inclusive implementation are vital to achieving the 2030 Agenda.

On July 22, 2025, the US announced its decision to withdraw from UNESCO, citing concerns over the agency's perceived anti-Israel bias and promotion of divisive causes.

The US State Department stated the withdrawal, effective December 2026, was due to UNESCO's agenda and its admission of Palestine as a member state. This marks the third time the US has left the agency, having last rejoined in 2023 after a 2018 departure under the previous Trump administration. The US first left in 1984 due to security concerns around the Soviet Union before rejoining in 2003.

Alongside its cultural programming, UNESCO supports a number of education, SRHR education, literacy, clean water, and gender equality initiatives. It also helps set standards for ocean protection and AI ethics and protect cultural heritage and education in conflict zones.

UNESCO’s Director-General Audrey Azoulay noted her regret over the decision but stated it was anticipated. She denied the accusations of anti-Israel bias, pointing to the agency's work on Holocaust education and fighting antisemitism. Azoulay noted that the reasons cited by the US were the same as cited in the previous departure, despite significant changes and reduced political tensions within the organization.

The withdrawal will impact UNESCO's budget, as the US contributes 8% of its funding. However, the agency has diversified its funding sources and stated that it does not anticipate any immediate staff layoffs.

On July 21, 2025, analysis from the Lowy Institute interactive Southeast Asia Aid Map highlighted the impact that major US and European ODA cuts are set to have on South-East Asia’s LICs.

Australia continues to provide targeted assistance in areas such as gender, climate, and disability, but its overall ODA contribution remains low compared to other OECD countries. The Lowy Institute warns that without renewed commitments from Western donors, long-term climate adaptation and poverty reduction efforts in South-East Asia may suffer.

Stakeholders are encouraged to review ODA strategies to ensure effective and equitable support for the region.

On July 15, 2025, the Spanish Minister of Foreign Affairs José Manuel Albares announced nearly EUR62 million (US$73 million) in voluntary contributions to international organizations, reinforcing Spain’s multilateral support through AECID which will address key challenges such as food security, humanitarian assistance, climate change, and gender equality.

The contributions aim to accelerate development and humanitarian efforts, especially amidst global budget cutbacks, and complement previous packages approved this year. So far, Spain has allocated over EUR150 million (US$176 million) to 42 multilateral organizations in 2025, underlining its commitment to supporting vulnerable populations, sustainable development, and international cooperation.

Major recipients include UNICEF, UNFPA, FAO, the Climate Adaptation Fund, UN -Women, WFP, WHO, PAHO, UNRWA, UNHCR, and IOM, among others.

On July 9, 2025, Canada pledged a CAD7 million (US$5 million) contribution to a new technical assistance project in the Republic of Moldova aimed at empowering rural women and promoting climate resilience.

The initiative, titled Advancing Climate Resilience and Women’s Empowerment in Moldova, will enhance access to training and resources in agroforestry and climate-smart agriculture. It focuses on supporting women entrepreneurs in rural areas by strengthening leadership, financial inclusion, and business development capacities.

This project reflects Canada’s broader commitment to gender equality and sustainable development, and follows ongoing Canadian support to Moldova in areas such as governance and economic resilience. It builds on Canada’s broader engagement, including a recently announced CAD120 million (US$88 million) sovereign loan to bolster Moldova’s financial resilience.

On July 2, 2025, the FfD4 in Seville, Spanish Foreign Minister José Manuel Albares urged all countries to meet the international target of allocating 0.7% of GDP to ODA, reaffirming Spain’s legal commitment to this benchmark.

Albares emphasized the need to mobilize both public and private finance, strengthen tax systems, and tackle illicit financial flows. He also underscored the importance of effective assistance delivery, localizing development finance, and reforming international tax cooperation.

Spain endorsed the Sevilla Commitment, which calls for improved debt sustainability, governance reforms in international financial institutions, and harnessing trade and technology to achieve the SDGs.

During side events, Albares highlighted Spain’s support for coordinated health financing, referencing its Global Health Action Initiative with WHO, Gavi, and the Global Fund. He concluded that fulfilling the Sevilla Commitment is essential to promoting inclusive and sustainable global development.

On June 30, 2025, Canadian Secretary of State Randeep Sarai announced Canada’s support for new blended finance initiatives totaling US$17 million at the Fourth International Conference on Financing for Development.

The pledge included:

• CAD10 million (US$7 million) for a blended finance accelerator to support gender-responsive investment in emerging markets;
• CAD5 million (US$4 million) to help developing countries improve domestic resource mobilization in the digital economy; and
• CAD2 million (US$1 million) to support SDG-aligned national financing strategies with the UNDP.

Canada also endorsed the Sevilla Platform for Action on private capital mobilization.

On June 27, 2025, the Swedish government adopted a new development cooperation strategy for gender equality and the freedom and empowerment of women and girls, with a total budget of SEK800 million (US$84 million) covering the period 2025–2028.

The strategy will be implemented by Sida and targets global, regional, and national levels, with a strong focus on local ownership and rights-based approaches.

The strategy outlines four primary objectives:

• Combat sexual and gender-based violence and challenge harmful norms;
• Promote women’s and girls’ economic empowerment and access to equal rights;
• Strengthen political participation and societal influence of women and girls; and
• Improve access to disaggregated data for gender-sensitive policy and programming.

Aligned with Sweden’s broader ODA priorities and global frameworks like the EU Gender Action Plan, the strategy emphasizes intersectional analysis, transparency, and collaboration with civil society and the private sector. It is designed to respond to growing global pushback against gender equality.

On May 26, 2025, Germany’s new CDU foreign minister Johann Wadephul has requested a comprehensive evaluation of the FFP, originally introduced in 2023, to shift focus towards traditional foreign policy priorities.

The article notes that the initial implementation of FFP was perceived as inconsistent by both supporters and critics. There has been no full evaluation of its impact, unlike in Sweden, where a formal review was conducted before the policy was ended. Key questions identified include which outcomes were achieved, what challenges arose, and which elements could be relevant for future policy, regardless of political leadership.

The AA continues to see underrepresentation of certain groups, including women, people of colour, and people with disabilities. Applications for diplomatic posts have also decreased, which is partly attributed to perceptions of outdated organizational structures.

Some countries, such as Mongolia, Colombia, and Panama, developed closer relations with Germany during this period. However, increased tensions with conservative groups were also observed, which mirrors findings from Sweden’s experience. Several departments within the AA have commissioned external reviews of FFP in their areas, but a comprehensive assessment at the ministry level is still pending.

On May 21, 2025, Spanish Foreign Minister José Manuel Albares met with Dominican Foreign Minister Roberto Álvarez in Madrid to discuss their strong bilateral relations and regional issues in Latin America, highlighting Spain’s 35-year cooperation with the Dominican Republic and over EUR125million (US$135 million) committed to development assistance focused on institutional strengthening, gender equality, and reducing inequalities.

Albares emphasized Spain’s commitment to strengthening economic and investment ties in the Dominican Republic. Discussions also included Spain’s support for Haiti’s stability through a EUR4 million (US$4 million) contribution to the Multinational Security Support Mission, advocating for its conversion into a UN peacekeeping operation.

The ministers reviewed upcoming international events in Spain, including the 4^th International Conference on Financing for Development in Seville and the 2026 Ibero-American Summit in Madrid.