Policy Updates

On August 14, 2025, the German government announced an additional EUR6 million (US$7 million) in humanitarian assistance for Afghanistan to address the urgent needs of over 23 million people, channeling the funds through the WFP and other NGOs.

The German government provided the additional funding from the budgets of the FFO and the BMZ. The funds, which will bypass the de facto Taliban government, are intended to provide food and maintain life-saving basic healthcare.

The support will primarily target returning Afghans and communities in border regions, with a special focus on women and children. The German government reiterated its call for the de facto Taliban government to lift restrictions on women's freedom of movement and work and to ensure unhindered access for the needs-based distribution of humanitarian assistance to all people in need.

On July 30, 2025, the German government published its 2026 draft budget, confirming a continued cut to Germany’s development spending and projecting a fall in the ODA/GNI to 0.52%.

The 2026 draft budget outlined a EUR9.9 billion (US$11.5 billion) allocation for the BMZ, a 3% decrease of EUR331 million (US$383 million) compared to the 2025 draft. The department's budget is planned to shrink further to EUR9.3 billion (US$10.8 billion) by 2029. This corresponds to a fall in ODA/GNI is from 0.56% of GNI in 2025 to 0.52% in 2026, and further to 0.43% by 2029.

Other ministries also faced cuts:

• The AA was allocated EUR6.1 billion (US$7.1 billion), a slight increase from 2025. The budget line for humanitarian assistance and crisis prevention remained unchanged at EUR1.43 billion (US$1.7 billion), following a 47% cut between 2024 and 2025;
• The BMG’s envelope for global health was set at EUR122 million (US$141 million), a decrease of EUR10 million (US$12 million) from 2025; and
• The BMFTR saw an overall budget decrease of 5%, and its budget line for health research, medical technology, and global health is cut by 15% to EUR327 million (US$379 million).

German Finance Minister Lars Klingbeil described the cuts as a political compromise, stating that coalition partners had pushed to either dismantle the ministry or significantly reduce its funding and supported Development Minister Reem Alabali-Radovan's pledge to improve spending efficiency.

Parliamentary discussions on the 2026 budget draft are set to commence following the summer recess, with final decisions expected at the Budget Committee’s settlement meeting in November 2025.

On July 25, 2025, Germany announced a EUR500 million (US$586 million) loan to South Africa, through the German development bank KfW, which aims to facilitate reforms in South Africa’s energy sector to create a better environment for private investment and support the country's transition to renewable energy.

The funds will support the expansion of the necessary grid infrastructure for solar and wind power. The loan is composed entirely of market funds.

The initiative is part of the JETP, through which Germany, the UK, France, the Netherlands, Denmark, and the EU support South Africa's climate and energy policy. Under the JETP, the South African government committed to accelerating its phase-out of coal. The loan will promote the needed expansion of South Africa’s power grid, with a target of constructing over 14,000 kilometers of new transmission lines by 2032.

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 June 25, 2025, German Development Minister Reem Alabali-Radovan announced a EUR600 million (US$688 million) contribution to Gavi to support global immunization through 2030, at Gavi's replenishment conference held in Brussels.

Alabali-Radovan emphasized that investing in vaccine access is both a humanitarian and economic priority, underscoring Germany’s long-standing role in strengthening global health systems. The funding will help immunize hundreds of millions of children and build more resilient healthcare infrastructure in low-income countries.

On June 24, 2025, the German government presented the draft 2025 budget which considers reducing its ODA budget as defense spending increases to meet NATO commitments, with ODA expected to drop to EUR10.3 billion (US$11.8 billion), down from EUR11.5 billion (US$13.1 billion) in 2024 and EUR13.8 billion (US$15.8 billion) in 2022.

Meanwhile, Germany plans to raise defense spending to 2.4% of GDP in 2025, exceeding the NATO target. The shift comes amid concerns about future US support under Trump's administration and aims to strengthen European security.

However, humanitarian organizations have raised concerns that these cuts could further undermine Germany’s longstanding commitments to global development and crisis response.

From June 16 to 18, 2025, AFD Group CEO Rémy Rioux visited Ukraine and Moldova, signalling AFD's strengthened commitment to Ukraine’s reconstruction and European integration ahead of the Ukraine Recovery Conference in Rome on July 10 and 11, 2025.

Rioux highlighted that in Odessa, AFD supports the REHAB 1 program, implemented by EF, to improve mental health and rehabilitation services for civilians and veterans. In Kyiv, Rioux and French officials met Ukrainian ministers and advisers to prioritize financing for reconstruction, decentralization, and European convergence.

In Lviv, Rioux signed AFD’s first Ukrainian grant, totaling EUR5million (US$6 million), with the mayor for urban mobility, improving access to the Unbroken rehabilitation center for over 150,000 displaced people. This project, supported by GIZ, the European Commission, and EBRD, paves the way for future direct loans to Lviv.

In Moldova, Rioux met Moldovan Prime Minister Dorin Recean, Deputy Prime Minister Cristina Gherasimov, and Energy Minister Dorin Junghietu to confirm AFD as a leading bilateral partner and a key implementer in the European Growth Plan, which totals EUR1.9billion (US$2.2 billion) over 2025–2027. The INSPIREE program, AFD's first investment in Moldova and co-financed with the KfW, is planned to boost energy security by renovating public buildings.

From June 9-13, 2025, the 3^rd UN Ocean Conference was hosted in Nice, France, ending with over 170 countries adopting a joint declaration committing to urgent measures for ocean conservation and sustainable use.

The event featured 55 heads of state and government as well as upwards of 15,000 participants from civil society, business, and science. The Nice Ocean Action Plan, combining this declaration with voluntary pledges, was said to mark renewed global political will for marine protection.

Key commitments included:

• A European Commission pledge of EUR1 billion (US$1.1 billion) for ocean conservation;
• A pledge by French Polynesia to create the world’s largest marine protected area;
• A pledge by New Zealand of US$52 million for Pacific Ocean governance;
• A pledge by Italy of EUR6.5 million (US$7 million) to strengthen Coast Guard surveillance in marine protected areas and on oil platforms;
• A pledge by Spain to establish five new marine protected areas, aiming to safeguard 25% of its marine territory;
• A pledge by Germany of EUR100 million (US$115 million) for Baltic and North Sea munitions clearance;
• The launch of a Coral Bond for reef conservation by Indonesia, WB, and partners.

37 countries, led by Panama and Canada, launched the High Ambition Coalition for a Quiet Ocean, while Canada pledged US$9 million to the Ocean Risk and Resilience Alliance. UN agencies and global partners also launched a co-design process for One Ocean Finance to unlock billions in new financing from ocean-dependent industries and blue economy sectors.

Nineteen more states ratified the Marine Biodiversity Treaty, bringing total signatures to 136 and ratifications to 50 states, plus the EU. Ten more ratifications are needed for the Agreement to enter into force. The 4^th UN Ocean Conference, in 2028, will be co-hosted by Chile and the Republic of Korea.

On June 12, 2025, German Defense Minister Boris Pistorius announced a EUR9 billion (US$10.4 billion) support package for Ukraine, making Germany the second-largest donor after the US.

The package includes EUR1.9 billion (US$1.4 billion) for joint defense production, with plans to manufacture long-range weapons in Ukraine.

This pledge builds on Germany’s total EUR48 billion (US$52 billion) in Ukraine assistance since 2022, of which EUR15.6 billion (US$18 billion) was military assistance. The pledge reflects Germany’s strategic shift toward long-term industrial partnerships and enhanced defense capabilities. The announcement signals Germany’s intent to lead European security efforts and bolster Ukraine’s resilience amid ongoing Russian aggression.

On June 2, 2025, IFAD president President Álvaro Lario called on Germany’s leadership as crucial to rekindle global solidarity amid rising inequality, conflict, and climate challenges at the Hamburg Sustainability Conference, meeting with the BMZ to reinforce IFAD’s partnership with Germany, focusing on tackling hunger, poverty, and youth unemployment in rural areas, where 80% of the world’s poorest reside.

Despite increased global wealth, acute hunger has tripled since 2018, now affecting nearly 300 million people in 53 countries. Climate extremes and conflict are rising, yet development funding falls short by an estimated US$4 trillion (EUR3.7 trillion) annually. Lario urged Germany to catalyze private sector investment and help close the development gap.

Lario emphasized that investing in small-scale rural producers is a strategic move for global stability and food security, not charity. With 1.2 billion young people seeking work—90% in developing countries—agriculture and food systems could unlock over US$4.5 trillion in new business yearly and create 120 million jobs, turning migration into a choice, not a necessity.