Policy Updates

On November 28, 2025, the German parliament approved the federal budget for 2026 totaling EUR524.5 billion (US$605.8 billion), allocating EUR10.05 billion (US$11.6 billion) to the BMZ, a decrease of EUR251 million (US$290 million) compared to 2025, confirming a downward trend in ODA.

The Foreign Office's budget increased slightly by EUR132 million (US$152 million) compared with 2025. While humanitarian assistance rose by EUR23 million (US$27 million), it failed to offset the EUR1.3 billion (US$1.5 billion) cut in 2025. The Ministry of Health's global health budget decreased by EUR15 million (US$17 million) to EUR117 million (US$135 million), an 11.5% decline.

German Finance Minister Lars Klingbeil already called for a consolidation plan to address a projected EUR12 billion (US$13.9 billion) funding gap in 2027. Long-term projections showed the BMZ budget declining to EUR9.3 billion (US$10.7 billion) by 2028. SEEK Development projected the ODA to gross national income ratio declining from 0.67% in 2024 to 0.43% by 2029.

A year-long campaign led by EU Commission President Ursula von der Leyen and South African President Cyril Ramaphosa has secured EUR15.5 billion (US$18.0 billion) to mobilize investments in renewable energy across Africa, along with additional commitments in clean energy generation and household electricity access, announced on November 21, 2025.

The EU led the pledging effort with more than EUR15.1 billion (US$17.5 billion), including contributions from multiple EU member states including Germany, France, Denmark, Italy, the Netherlands, Spain, Portugal, Sweden, Austria, and Ireland, as well as significant bilateral contributions by European financial institutions and development finance institutions, and estimated mobilized private investment. Alongside the campaign, the African Development Bank has pledged to allocate at least 20% of their 17th replenishment to renewable energy.

The campaign, organized in collaboration with Global Citizen and with policy support from the IEA, aimed to drive public and private investment in supporting Africa's clean energy transition, expand electricity access, and promote sustainable economic growth and decarbonized industrialization. The effort represented a step toward accelerating the global transition from fossil fuels to clean and sustainable energy.

Von der Leyen stated that the investment would turbocharge Africa's clean-energy transition, providing millions more people with electricity access and creating opportunities for thriving markets, new jobs, and reliable clean energy.

On November 21, 2025The Global Fund held its Eighth Replenishment Summit, in Johannesburg, South Africa, co-hosted by the governments of South Africa and the UK on the margins of the G20 Leaders' Summit, securing US$11.3 billion in pledges to sustain the fight against AIDS, tuberculosis, and malaria.

Partners from more than 30 countries pledged support to save lives and strengthen systems for health, marking the first replenishment held on African soil. The summit demonstrated global solidarity despite fiscal tightening, conflict, and global uncertainty, though total pledges fell short of the ambitious target set in the Investment Case and several donors had yet to confirm their pledges.

The US, the Global Fund's largest donor, committed US$4.6 billion. The UK pledged GBP850 million (US$1.1 billion), while Germany confirmed EUR1 billion (US$1.2 billion) and Canada pledged CAD1.02 billion (US$723 million). France noted that its support remained unchanged. Spain increased its pledge to EUR145 million (US$167 million), Italy pledged EUR150 million (US$173 million), the Netherlands contributed EUR146 million (US$169 million), and additional pledges came from many other donors. South Africa committed US$37 million, including US$10 million from the private sector. African countries made solidarity commitments totaling US$52 million. G20 member states reached US$9 billion in commitments.

Within the private sector, the Gates Foundation pledged US$912 million, the Children's Investment Fund Foundation pledged US$135 million, and (RED) committed US$75 million. Overall, private sector support reached US$1.3 billion.

On November 20, 2025, Germany committed EUR1 billion (US$1.2 billion) over 10 years to the Tropical Forest Forever Facility, a new rainforest protection fund launched by Brazilian President Luiz Inácio Lula da Silva at COP30 in Belém.

German Environment Minister Carsten Schneider and German Development Minister Reem Alabali-Radovan announced the pledge at the climate conference. Brazil's Environment Minister Marina Silva welcomed Germany's contribution, stating it demonstrated the fund was a well-structured climate protection instrument. Martin Kaiser, Executive Director of Greenpeace Germany, praised the political signal but called for conditions ensuring the fund's investments avoid climate-harmful sources.

The fund aims to reach US$125 billion and distribute US$4 billion annually to countries protecting tropical forests, with penalties for deforestation verified by satellite imagery. The World Bank serves as trustee, with governance by an 18-member executive council split equally between tropical forest countries and industrialized nations. Norway pledged US$3 billion over 10 years, while Brazil and Indonesia each committed US$1 billion. Founding members include Brazil, Colombia, Ghana, Democratic Republic of Congo, Indonesia, and Malaysia.

On November 17, 2025, German Federal Environment Minister Carsten Schneider pledged EUR60 million (US$70 million) to the Adaptation Fund at the COP30 conference in Belém, Brazil, maintaining Germany's position as the fund's largest donor since 2007.

Schneider stated the funding would support vulnerable countries in adapting to climate change, particularly protecting coastal populations from extreme weather events. Germany had announced an identical EUR60 million (US$70 million) contribution at COP29 in Baku, Azerbaijan in 2024. The Adaptation Fund has deployed approximately US$1.4 billion across 200 projects in 108 countries, reaching over 50 million people since its establishment in 2007.

Schneider reaffirmed Germany's commitment to the COP29 agreement requiring industrialized nations to mobilize US$300 billion annually by 2035 for climate action. Germany provided EUR6 billion (US$7.0 billion) from the federal budget and EUR12 billion (US$13.9 billion) total for climate financing in 2024. German Chancellor Friedrich Merz had previously indicated Germany would contribute a substantial sum to Brazil's Tropical Forest Fund, which rewards forest conservation and penalizes deforestation.

The Tropical Forest Forever Facility secured endorsements from 53 countries and financial commitments exceeding US$5.5 billion launched at the COP30 Leader's Summit in Belém, Brazil, on November 6, 2025, hosted by Brazilian President Luiz Inácio Lula da Silva and UN Secretary-General António Guterres.

The TFFF Launch Declaration received endorsements from 53 countries, including 19 potential sovereign investors. A total of 34 tropical forest countries endorsed the declaration, representing over 90% of tropical forests in developing countries, including Indonesia, the Democratic Republic of Congo, and China.

Countries announced the following financial commitments:

• Norway committed US$3 billion over the next 10 years, subject to specific conditions;
• Brazil and Indonesia reconfirmed commitments of US$1 billion each;
• France indicated that, under specific conditions, it would consider committing EUR500 million (US$578 million) until 2030;
• Portugal committed US$1 million;
• Netherlands committed US$5 million for the secretariat; and
• Germany fully endorsed the TFFF, with Chancellor Friedrich Merz scheduled to discuss financial commitments with President Lula.

The TFFF is a shift in global efforts to protect and restore tropical forests. The facility will address a market failure while recognizing the value of and paying for ecosystem services provided by tropical forests to the world.

On October 12, 2025, at the World Health Summit in Berlin, Germany Development Minister Reem Alabali-Radovan announced a pledge of EUR1 billion (US$1.2 billion) to the Global Fund.

Alabali-Radovan stated that the pledge demonstrates Germany's continued engagement in global health protection despite domestic budget constraints.

The contribution is part of to the Global Fund’s current replenishment round, which began in February 2025 and will conclude at the G20 summit in South Africa in late November 2025. Since its establishment in 2002, the Fund has saved an estimated 70 million lives.

Germany's pledge includes EUR100 million (US$117 million) in the form of Debt to Health Swaps, which are subject to budgetary approval.

On October 7, 2025, German Federal Minister for Economic Cooperation and Development Reem Alabali Radovan announced a new, three-pronged action plan from the BMZ to restructure economic cooperation with partner countries, aiming to strengthen equitable, sustainable partnerships to secure energy supply, access critical raw materials, and attract qualified specialists.

The plan's first pillar focuses on increasing dialogue and integration by consulting with the private sector ahead of government negotiations with strategic partners and making economic cooperation a standard part of bilateral government negotiations.

The second pillar aims to reduce structural barriers for German and European companies in development cooperation tenders. This will be achieved through high-quality criteria in tendering processes, fairer competition, and better cooperation conditions, including involving companies in the project development phase of relevant investments.

The third pillar involves targeted promotion and support for German companies, with a special focus on SMEs. The BMZ will also increase its focus on critical and strategic raw materials in areas of interest for German and European companies, emphasizing socially and ecologically sustainable supply chains and a win-win approach for both Germany and its partner countries.

On September 29, 2025, the German government announced it provided a record EUR11.8 billion (US$13.8 billion) in international climate finance in 2024, meeting its annual pledge with EUR6.1 billion (US$7.2 billion) from the federal budget and mobilizing over EUR1 billion (US$1.2 billion) in private funding for the first time.

The total amount represents Germany's contribution to the international commitment of US$100 billion annually from industrialized nations. The EUR6.1 billion (US$7.2 billion) from the budget, an increase from EUR5.7 billion (US$6.7 billion) in 2023, was primarily funded by the BMZ at 79%. The remaining funds came from the IKI.

Mobilized funds totaled EUR5.7 billion (US$6.7 billion), which included EUR4.6 billion (US$5.4 billion) in market-rate loans from development banks KfW and DEG. Notably, private funding mobilized for climate investments more than doubled, reaching over EUR1 billion (US$1.2 billion) compared to EUR475 million (US$556 million) in 2023. Approximately EUR1.5 billion (US$1.8 billion) of the budget funds were allocated to climate-related biodiversity projects. The announcement was made ahead of COP30 in Belém, Brazil.

On September 18, 2025, the German Bundestag approved the 2025 federal budget, which included an 8% cut of EUR910 million (US$1.1 billion) to the Federal Ministry for Economic Cooperation and Development (BMZ) and a 47% cut of EUR1.3 billion (US$1.5 billion) to humanitarian assistance, prompting warnings of drastic consequences from ODA agencies.

The new federal budget totals EUR502.5 billion (US$588.9 billion), with priorities set on social and defense spending. Development Minister Reem Alabali Radovan stated that in view of increasing crises, Germany is investing far less in international cooperation. Despite the government's stated commitment to multilateralism, multilateral cooperation was disproportionately affected.

Key changes to development, humanitarian, and health funding include:

• A cut of EUR910 million (US$1.1 billion) to the BMZ, an 8% decrease from 2024;
• A cut of EUR1.3 billion (US$1.5 billion) to humanitarian assistance, a 47% decrease from 2024;
• A cut of EUR296 million (US$345 million) to multilateral cooperation, a 13% decrease from 2024;
• A 19% reduction in contributions to the GPEI to EUR30 million (US$35 million);
• A 20% reduction in contributions to the World Bank, amounting to a EUR201 million (US$236 million) cut;
• A 15% increase to the Ministry of Health’s budget compared to 2024; and
• A 4% increase to the BMFTR budget, which funds global health R&D.

ODA organizations warned that the consequences would be drastic. Thorsten Klose-Zuber, Secretary General of the NGO Help, stated the cuts could result in over four million people losing food assistance and 1.5 million people losing basic health care. While Minister Alabali Radovan acknowledged the impact, she sought to distance the German government's actions from the larger-scale aid reductions made by the former US administration under Donald Trump, highlighting the destabilizing effects those cuts had in places like Kenya.

The budget sparked considerable debate in the Bundestag. Jamila Schäfer of the Green Party called the cuts irresponsible. In contrast, Inge Grässle of the CDU argued that good results could still be achieved with the new funding levels. The far-right AfD party had argued for even more severe cuts, with lawmaker Mirco Hanker arguing that development spending was a 'waste of taxpayers' money.

Long-term financial planning suggests further reductions for the BMZ, with its budget projected to decline to EUR9.3 billion (US$10.9 billion) by 2029.