Policy Updates

On February 20, 2025, Dutch Minister for Foreign Trade and Development Cooperation Reinette Klever unveiled a significant overhaul of the Netherlands' development strategy, marking a decisive shift toward prioritizing national interests over traditional development programs.

Under the new policy, funding for initiatives supporting women's rights, higher education, sports, and culture will be eliminated, reflecting a broader trend of cutting back on sectors perceived as less 'directly beneficial' to Dutch taxpayers. Klever stated that all future development assistance must directly contribute to so-called 'Dutch interests', focusing specifically on trade, security, and migration concerns.

The strategic pivot entails a structural reduction of EUR2.4 billion (US$2.6 billion) annually from 2027, leaving EUR3.8 billion (US$4.1 billion) available for targeted aid that fosters trade partnerships and enhances safety in regions such as West Africa and the Middle East, where Klever noted 80% of global conflicts occur.

The sectors facing the most significant cuts were gender equality and cultural programs. Klever emphasized that the new approach aims to combat issues like people smuggling and provide support for refugees in their home regions, thereby alleviating migration pressures on the Netherlands. She expressed a preference for collaborating with smaller, locally based organizations rather than larger NGOs, which she deemed bureaucratic and inefficient. Despite the substantial cuts, Klever emphasized that the Dutch government is committed to continuing humanitarian assistance, ensuring that assistance reaches those in need effectively.

On December 17, 2024, the global campaign for assistance and development transparency, Publish What You Fund, released the report Commitments Without Accountability, which compares leading donors' commitments to locally led development, enabling effictive tracking and reporting on implementation.

The study focused on the extent to which donors had increased direct funding to local organizations. Of the five donors, including the Australian Department of Foreign Affairs and Trade, USAID, GAC, the Netherlands' Ministry of Foreign Affairs, and the UK’s FCDO, only USAID had the strategies, policies, comprehensive targets, and measurable public data to track its direct funding target.

The analysis created a Local Funding Matrix which looked at definitions, measurement, strategy, and policy to compare these 5 OECD DAC donors. Only USAID fulfilled all of the criteria; Australia has progressed in developing strategies, policies, and establishing a definition of local.

This work builds on Publish What You Fund's Metrics Matter series which tracked USAID 's progress towards its own 25% target by 2025, of which USAID is currently off track to meet. A third Metrics Matter report will be released in the spring of 2025, which will include all 5 donors.

On December 12, 2024, the Dutch Parliament approved the 2025 ODA budget with support from coalition and opposition parties, however, opposition parties CDA and SGP warned they may oppose future budgets unless key changes are made.

The budget, proposed by Minister for Foreign Trade and Development Cooperation Reinette Klever, included significant cuts and removed the link between development assistance and economic growth. CDA and SGP stressed that restoring this linkage by 2026 is essential for their continued support.

Parliament also approved reducing annual funding for the UN Relief and Works Agency for Palestine Refugees in the Near East from EUR19 million (US$21 million) to EUR15 million (US$16 million) in 2025, with plans to phase out support entirely by 2030. While backed by right-leaning parties, the cuts drew strong criticism from progressive MPs, who called it a heartless move that jeopardizes essential support to Gaza.

The approval highlighted tensions between fiscal priorities and humanitarian commitments, foreshadowing difficult negotiations in the coming years.

On December 10, 2024, Dutch Special Envoy for Ukraine Erica Schouten announced that the Netherlands will provide EUR8 million (US$9 million) over the next two years to support the UN's HRMMU.

The HRMMU documents human rights abuses and breaches of international law, supplying evidence for investigations. conducting over 300 investigations in 2024 alone, including over 100 in conflict zones, to highlight the war's severe impact on civilians.

Since the war began, the Netherlands has allocated over EUR105 million (US$114 million) to promote accountability for war crimes. It hosts key initiatives, including the Register of Damages for Ukraine, the ICPA in The Hague, and supports the establishment of a tribunal for aggression.

On December 5, 2024, the Dutch Ministry of Education’s budget debates resulted in a postponed parliamentary vote, with possible impacts on other ministries, including Foreign Affairs.

The coalition government's proposed EUR2 billion (US$2.2 billion) in education cuts faces strong opposition. Without a Senate majority, the coalition will need support from the opposition. Reversing EUR700 million (US$761 million) of the cuts may require reallocating funds from other ministries, including Foreign Affairs, raising concerns about already strained budgets.

The ODA budget is under scrutiny, with plans to gradually reduce the Netherlands’ EUR19 million (US$21 million) annual contribution to the UNRWA for Palestinian refugees. The contribution will be halved in 2025 and phased out by 2030. This shift, predominately driven by pro-Israel parties citing neutrality concerns, is part of broader budget negotiations to secure opposition support. Critics warn the cuts could destabilize assistance in Gaza and strain diplomatic commitments.

The vote has been rescheduled for December 12, 2024.

On November 29, 2024, the Dutch MOFA released a practical handbook to support the implementation of the government’s 2022 FFP.

The FFP aims to promote global equality, improve representation in decision-making, and tailor strategies to diverse contexts. The policy is guided by four principles: rights, representation, resources, and reality checks.

The handbook outlines seven key priorities:

• Embedding gender perspectives;
• Gender-sensitive budgeting;
• Addressing root causes;
• Inclusive consulting;
• Policy monitoring and evaluation;
• Institutional strengthening; and
• Organizational change.

To realize these priorities, the government recommended the following practical steps:

• Conducting gender analyses for policies, programs, and funding decisions;
• Implementing the use of gender-sensitive tools like the OECD gender marker;
• Training all ministry staff in feminist principles by 2025; and
• Expanding the network of gender focal points in embassies and departments.

On November 19, 2024, at COP29, New Zealand, the UK, and IISD joined COFFIS, a coalition founded by the Netherlands.

The coalition focuses on increasing transparency on the use of fossil fuel, improving international agreements to enable the phase-out process, and supporting each other in national phase-out efforts.

IISD was designated as an organizational partner to support the coalition and coordinate knowledge-sharing among participant countries. The coalition will report again on its progress in 2025.

On November 11, 2024, the Dutch government announced plans to reduce NGO funding by over 70%, cutting the budget from EUR1.4 billion (US$1.5 billion) from 2021-2025 to EUR390-EUR565 million (US$424-$614 million) for 2026-2030.

This EUR1 billion (US$1.1 billion) cut reflects the government’s goal to streamline spending and reduce NGO reliance on public funds.

In a letter, Foreign Trade and Development Cooperation Minister Klever outlined key changes in the new NGO funding policy framework:

• Higher independence: NGOs must generate at least 50% of income independently (up from 25%) to qualify for grants;
• Local empowerment: focus on local NGOs and grassroots initiatives in low-and middle-income countries while avoiding complex consortiums;
• Priority areas: health (e.g., combating HIV/AIDS, ending FGM), trade (e.g., promoting women’s entrepreneurship), and human rights (e.g., supporting vulnerable groups and female human rights defenders); and
• No lobbying funding: No grants will support lobbying within the Netherlands.

This policy has received criticism from NGOs. For example, Partos, a leading development cooperation network, called the cuts short-sighted and warned of damage to the Netherlands’ reputation as a global leader and the impact on global challenges like poverty, health, and climate action. Rutgers Internation warned the cuts threaten SRHR, particularly for women, girls, and marginalized groups.

The NGO funding cut coincides with broader reductions to Dutch ODA, including EUR3.4 billion (US$3.6 billion) from 2025-2027, and the decoupling of ODA from GNI, resulting in a EUR2 billion (US$2.2 billion) shortfall through 2029.

Parliament began debating the Minister’s budget on November 14, 2024, with a final decision expected on November 20.

On October 29, 2024, Dutch Foreign Trade and Development Assistance Minister Reinette Klever and Finance Minister Eelco Heinen, issued a letter to clarify the seeming suspension of the link between Dutch ODA and the GNI for the 2025 development budget.

The ministers state that, as outlined in the budget documents published on Budget Day on September 17, 2024, the current Dutch cabinet has opted to not adjust the ODA 2025 budget based on recent economic forecasts from the Dutch Economic Policy Agency. Adhering to these forecasts would have resulted in a cumulative increase of EUR2 billion (US$2.2 billion) in the ODA budget from 2024 to 2029.

This decision marks a departure from the previous practice of updating the ODA budget biannually in response to economic forecasts. However, the current cabinet does not formally abandon the linkage policy established in 1975; instead, it chooses not to apply it at this time, and leaves open the possibility of future adjustments.

The letter concludes with a commitment to review the budget in spring 2025.

On October 25, 2024, Minister for Climate and Green Growth Sophie Hermans shared the Netherlands’ priorities and goals for the upcoming COP29 climate conference in Azerbaijan.

Key objectives include:

• A new and inclusive international climate finance target that involves more contributors beyond traditionally HICs, aiming to scale finance for both adaptation and mitigation in LICs;
• Advancing carbon market regulations with a robust framework under Article 6 of the Paris Climate Agreement to ensure quality and transparency, and prevent double counting of international carbon emissions;
• Advocate for new climate adaptation indicators to help countries track progress, with a focus on integrating water management expertise in global strategies, food security, and safeguarding vulnerable communities;
• Advocate for a renewed Gender Action Plan to promote women’s and marginalized groups’ roles in climate decisions and initiatives to make climate action more inclusive;
• Promote sustainable transport and a circular economy with policies to reduce waste, support green technology, and improve energy efficiency. This includes backing international coalitions and frameworks for sustainable mobility, such as zero-emission vehicle alliances; and
• Advance the Dutch Kingdom’s Climate Agenda Support for Caribbean islands by recognizing their unique vulnerabilities to climate adaptation and stressing the need for technical assistance and climate finance.

The Netherlands aims to use diplomatic partnerships, financial commitments, and technical expertise in water and energy to lead these initiatives, working closely with EU counterparts and other like-minded nations to build consensus and drive action.