Policy Updates

On July 4, 2025, Australia and Fiji signed an elevated Vuvale Partnership, strengthening cooperation across five key areas. These include:

• People-to-people ties;
• Economic resilience;
• Security;
• Regional engagement; and
• Development.

The agreement deepens labor mobility, trade and investment links, and cybersecurity cooperation. It agrees to increase Australia’s bilateral development assistance to Fiji by AUD40 million (US$26 million) over four years ,focusing on thematic areas such as global health, taking the total to just under AUD500 million (US$326 million) from 2025 to 2029.

On July 4, 2025, GCA convened a Funders Forum at its Rotterdam headquarters to assess progress and shape the future of the AAAP, which has mobilized over US$17 billion in climate adaptation investments across Africa, intending to reach US$25 billion by the end of 2025.

The forum brought together key partners including the BMGF, UK FCDO, GIZ, NORAD, and MDBs.

The AAAP attendees reviewed an evaluation by BCG, which measured progress across key priority areas such as food security, water and nature, resilient infrastructure, and youth engagement. Participants also discussed initiatives on health, education, and urban resilience, including upcoming “People’s Adaptation Plans” in 11 African and 10 Bangladeshi cities. Over 70% of AAAP projects now incorporate gender-responsive and inclusive strategies.

On July 2, 2025, Norwegian Minister of International Development Åsmund Grøver Aukrust signed three new agreements under Norway’s Tax for Development program, committing to a total of NOK180 million (US$18 million) over three years.

The initiative aims to help developing countries strengthen their tax systems and increase domestic revenues to finance health, education, and poverty reduction. The new commitments include:

• NOK60 million (US$6 million) to the World Bank’s Global Tax Program;
• NOK60 million (US$6 million) to the ATAF; and
• NOK60 million (US$6 million) to the OECD’s tax initiatives.

Minister Aukrust emphasized that effective taxation is key to sustainable development and that these agreements support fairer global systems and national self-reliance. Since 2015, Norway has more than doubled its funding for tax-related development efforts.

On July 2, 2025, the UK government faced criticism at the FfD4 in Seville for its reduced commitment to ODA.

The UK government has reduced its ODA target from 0.5% to 0.3% of GNI, amounting to a cut of approximately GBP6.2 billion (US$8.4 billion). Critics noted that only one UK representative, Baroness Jenny Chapman, attended the summit, prompting accusations of hypocrisy given the UK ’s calls for fairer financial systems.

Development organizations condemned the cuts, warning they would impact essential services such as healthcare, education, and climate response in LICs. Many argued that private sector finance cannot replace the public funding necessary to address long-term development challenges.

Despite the UK’s endorsement of a new global tax and debt cooperation agreement at the summit, campaigners said its actions risk eroding trust in multilateral development efforts.

On July 1, 2025, Norway's Minister of Climate and Environment Andreas Bjelland Eriksen confirmed a contribution of up to US$50 million to the ADB's CACF. The fund, launched in 2024 under Article 6 of the Paris Agreement, is designed to:

• Accelerate emissions reduction projects in Asia and the Pacific;
• Mobilize private investment into green infrastructure; and
• Provide upfront funding and technical support to catalyze sustainable developments.

This contribution strengthens Norway’s CACF partnership with ADB and the broader NIGU. It supports Norway’s ambition to reach climate neutrality by 2030 and foster global emission cuts in line with Paris goals.

Eriksen underscored that the partnership reflects Norway’s continued leadership in climate finance, emphasizing its role in scaling private capital for climate action and advancing the transition to a low-carbon economy in LMICs.

On July 1, 2025, US Secretary of State Marco Rubio announced the official closure of USAID, following its rapid dismantling since US President Donald Trump’s return to office in January 2025.

Rubio claimed that the end of USAID eliminates waste and redirects funds for measurable returns. Many Democrats as well as the American Foreign Service Association condemned the move as unconstitutional and inhumane, and former US presidents Barack Obama and George W. Bush lauded the agency and criticized the announcement of closure. The shutdown comes after a Lancet study warned that US foreign assistance cuts could cause over 14 million additional global deaths, including 4.5 million children.

Of the US$120 billion in USAID contracts at the start of January 2025, US$69 billion in programming remains, covering 580 humanitarian, 167 health, 65 economic, and 79 other initiatives. The State Department will now oversee foreign assistance distribution, promising greater accountability and alignment with administration policy. The FBI is set to take over former USAID headquarters in Washington, DC.

On July 1, 2025, the Swedish government has freed up nearly SEK1.7 billion (US$177 million) to strengthen its civilian and humanitarian support to Ukraine and respond to other global humanitarian needs, reprioritizing funds from the 2025 ODA budget, including the phasing-out of development strategies for Afghanistan and the Asia-Pacific region.

The reallocation reflects the government’s commitment to respond flexibly to international crises. Minister for International Development Cooperation and Foreign Trade Johan Forssell emphasized the need to reinforce support for Ukraine while addressing rising global humanitarian demands.

Since Russia’s full-scale invasion in 2022, Sweden has provided approximately SEK12.8 billion (US$1.3 billion) in civilian and humanitarian support to Ukraine. The newly announced funds will supplement these efforts, ensuring continued assistance amid ongoing conflict and broader international challenges.

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 30, 2025, Spanish Foreign Minister José Manuel Albares reaffirmed Spain’s commitment to global health with an increased pledge of EUR145 million (US$166 million) to the Global Fund to Fight AIDS, Tuberculosis and Malaria for the 2026–2028 period, at the Fourth International Conference on Financing for Development in Seville.

This marks a rise from the previous EUR130 million (US$149 million) contribution, demonstrating Spain’s intent to bolster support amid a global decline in health financing.

Albares emphasized the Global Fund’s role in saving over 65 million lives and its capacity to strengthen health systems in vulnerable regions. He also stressed the importance of sustained multilateral cooperation, particularly in light of warnings from the WHO about reduced global investment in health. Spain’s renewed funding aligns with its broader commitment to inclusive, rights-based international development.

On June 29, 2025, Canadian Secretary of State Randeep Sarai concluded her visit to Ghana, announcing CAD13 million (US$9 million) in new funding to expand the EMPLOY project, aimed at improving vocational and technical skills training for Ghanaian youth, particularly women.

The initiative supports economic empowerment through education in trades such as solar panel installation and machinery operation. The visit also highlighted Canada’s broader partnerships in climate-smart agriculture, gender equality, and green entrepreneurship.