Policy Updates

On May 30, 2025, GGF and Sida have formed a partnership to expand green lending in the Western Balkans and the EU’s Eastern Neighborhood. Sida has issued an unfunded guarantee of EUR60 million (US$65million), enabling GGF to provide EUR120 million (US$130 million) in loans to private businesses and households through financial intermediaries and direct company lending.

This support targets urgent investments in decarbonization, renewable energy, and energy efficiency. The partnership marks GGF’s first risk-sharing guarantee, enhancing its ability to back green initiatives and prepare financial institutions and businesses for upcoming EU market opportunities.

GGF was initiated as a public-private partnership by EIB and KfW, with backing from the EU, Germany’s BMZ, and other international investors. Sida’s involvement bridges the investment gap in high-risk markets and complements Swedish ODA and EU programs.

This collaboration is a major milestone for green finance in Southeast Europe, the Caucasus, Middle East, and North Africa, supporting sustainable energy solutions and emissions reduction.

On April 28, 2025, SIDA contributed EUR2million (US$2 million) to Afghanistan through the WFP and to support critical nutrition programs, which will enable the WFP to distribute over 550 metric tons of specialized nutritious food to 125,000 Afghan mothers and children over three months to combat malnutrition.

Between 2021 and 2024, SIDA contributed over EUR32million (US$35million) to WFP, establishing itself as a top donor. WFP remains a critical lifeline for Afghan women and children, who make up over half of the 12 million people reached by WFP in Afghanistan in 2024.

This partnership underscores Sweden's commitment to addressing Afghanistan's nutrition crisis and ensuring vulnerable populations receive the support they need.

On April 23, 2025, Belgium and Sweden, through Enabel and the SIDA, have assumed the Co-Presidency of the PN for 2025–2026.\
The PN, a collaboration of 25 European international cooperation organizations, fosters knowledge exchange, strategic dialogue, and joint initiatives with EU institutions. Under the leadership of Enabel and SIDA, the network will prioritize contributions to the EU’s Global Gateway Strategy, focusing on energy, critical raw materials, migration, and digitalization. It will also strengthen partnerships with the private sector and align technical assistance with financial instruments.

Other key initiatives include advancing the Team Europe approach, addressing post-war reconstruction in Ukraine, Gaza, and Syria, and engaging in EU-level events such as the Global Gateway Forum. This Co-Presidency aims to enhance the EU’s collective response to global challenges through strategic and visible international cooperation.

On April 18, 2025, Sweden announced a US$13 million humanitarian assistance package to support over a million Rohingya refugees and host communities in Cox’s Bazar, Bangladesh which will be distributed through eight partners, including UNHCR, WFP, Norwegian Refugee Council, Islamic Relief, Action Against Hunger, Save the Children, and International Rescue Committee.

The assistance aims to address urgent needs such as food security, nutrition, healthcare, protection services, emergency education, and access to water and sanitation.

Additionally, Sweden is collaborating with Start Fund Bangladesh to empower 26 local and national organizations to respond to emergencies. This initiative underscores Sweden's commitment to supporting Bangladesh in managing humanitarian needs, particularly in the world's largest refugee camp.

On February 12, 2025, the Swedish Government presented its Foreign Declaration, which emphasized local area security, trade, and regional issues while refraining from criticizing the Trump administration's development policies.

The declaration continues to describe gender equality as a core value but shifted focus towards economic empowerment rather than rights, with insufficient references to the UN's agenda for women, peace, and security.

Concord raised concerns regarding Sweden's commitment to global humanitarian issues during a time of heightened international instability, particularly in lights of the omissions of US criticisms. The decision not to mention the Trump administration's saga against USAID was noted as particularly striking, undermining Sweden's potential impact on global development efforts.

Concord also criticized that the climate crisis was inadequately addressed as a security concern, and the declaration lacked urgency in responding to the needs of those most affected by climate change. While affirming that international law and human rights are foundational to Sweden's foreign policy, Concord asserted that the government has not fully recognized CSOs as agents of change, limiting their role to that of providers of humanitarian assistance.

Concord applauded that, according to the declaration the government intends to focus on "forgotten crises" such as those in the DRC and Sudan, but the reduction of support for development and peacebuilding in these regions raised concerns about the effectiveness of integrated approaches necessary for long-term solutions.

Although the Swedish government aims to maintain its status as a significant humanitarian donor, recent cuts to development budgets threaten to compromise Sweden's contributions to global development. Concord called on the Swedish government to articulate a clear strategy that balances national interests with global responsibilities.

On February 12, 2025, representatives from Research Sweden and Concord voiced their concerns regarding what it described as Sweden's diminishing commitment to global sustainable development and 'abandonment' of Agenda 2030, particularly in light of the US' apparent retreat from its role as leading OECD DAC donor.

With only five years remaining to achieve the UN SDGs, Concord emphasized that the apparent lack of focus on Agenda 2030 within Swedish foreign policy is seen as detrimental, especially during a time marked by heightened global uncertainty and instability.

Recent shifts in Swedish government policy have led to reduced funding and fewer assignments linked to the agenda. A recent study revealed a significant decline in appropriations related to Agenda 2030, dropping from 19.5% in 2022 to under 1% in 2025. Additionally, the dismantling of the national coordinator for Agenda 2030 and the weakening of statistical monitoring further undermine the initiative’s effectiveness.

Concord noted that the Swedish government’s withdrawal of research funding for global development issues raises further alarms, as it threatens Sweden's position as a knowledge leader on sustainability. The absence of a clear focus on global development in the new research bill could compromise Sweden's ability to contribute effectively to international sustainability efforts. Concord highlighted the urgent need for the government to refocus its efforts on fulfilling its commitments under Agenda 2030, as abandoning it could jeopardize Sweden's influence, credibility, and security on the global stage.

Concord called on the Swedish government to outline concrete steps for reinvigorating its commitment to the 2030 Agenda and demonstrating how Sweden can contribute meaningfully to achieving its global development goals.

On January 15, 2025, the Swedish government announced a SEK4.3 billion (US$426 million) investment in global health development, specifically targeting SRHR.

This funding will support a five-year strategy, implemented by Sida, from 2025 to 2029, aimed at addressing pressing health challenges exacerbated by crises, conflicts, climate change, and global health threats.

The initiative responds to the alarming pushback against human rights, particularly affecting girls, women, and LGBTQI+ individuals, which has drastically reduced access to essential medical services. The strategy focuses on the most vulnerable populations in low- and middle-income countries, with an emphasis on improving health conditions, strengthening health systems, and enhancing disease monitoring.

Key activities will include increasing access to maternity care, contraceptives, and safe abortions, ultimately aiming to reduce practices such as female genital cutting and child marriage, as well as preventing unintended pregnancies and unsafe births. Swedish Minister for International Development Cooperation and Foreign Trade Benjamin Dousa stated that this initiative will help ensure more children receive basic vaccinations and contain infectious diseases at earlier stages.

On December 17, 2024, 20 Swedish ODA organizations strongly criticized the government’s new development strategy, claiming that SEK3 billion (US$290 million) intended for poverty reduction is being redirected to migration control measures.

In an op-ed published in Dagens Industri, the organizations argue that the Tidö Agreement negotiated with far-right support, marks a fundamental shift in Sweden’s ODA priorities. Secretary General of Erikshjälpen Mattias Ingeson and Secretary General of Afrikagrupperna Louise Lindfors, joined by 18 other ODA leaders, stated that instead of assisting those fleeing conflict and crises, evidence suggests these measures have led to violations of human rights and the principles of the Refugee Convention.

The new strategy allocated significant funding to border police and migration management in transit countries. However, ODA organizations contend that this undermines Sweden’s long-standing development principles and argue that tackling the root causes of migration requires prioritizing core development assistance over border control measures.

The protest letter was signed by leaders from prominent Swedish ODA organizations, including Act Swedish Church, Diakonia, ForumCiv, International Rescue Committee, and the Swedish Afghanistan Committee, representing a broad coalition of Sweden’s development sector.

On November 26, 2024, the Swedish government approved an additional SEK50 million (US$5 million) in funding to UNFPA to support its operations in Ukraine; the funding is intended to address the impact of Russia's invasion on SRHR.

Sweden's SEK50 million (US$5 million) contribution from the ODA budget will be channeled through UNFPA's Humanitarian Thematic Fund to support operations in Ukraine.

According to Swedish Minister for International Development Cooperation Benjamin Dousa, Russian attacks have compromised access to essential healthcare, particularly maternal care and safe abortion services in the regions affected by the war. The need for humanitarian assistance has risen during winter, with many forced to flee Ukraine. Dousa noted that the support will help to support safe maternity care by building birthing rooms that are better equipped to withstand Russia’s attacks.

On November 26, 2024, Swedish Minister for International Development Cooperation and Foreign Trade Benjamin Dousa announced plans to end Sweden's bilateral development assistance to Yemen, and emphasized that the phase-out will be carried out responsibly, with Sida concluding operations in June 30, 2025.

Dousa expressed that the increasingly destructive security situation led to the decision to phase out development assistance. The situation hindered effective monitoring of the development initiatives.

The decision aligned with the Swedish government's ODA Reform Agenda, which emphasized long-term planning, transparency, and efficiency. Swedish development assistance to Yemen has totaled approximately SEK80 million (US$8 million) annually in recent years.

Sweden will remain a major humanitarian donor to Yemen, where millions continue to require urgent assistance. For 2024, Swedish humanitarian assistance to Yemen amounted to SEK287 million (US$28 million). Sweden provided substantial core funding to several UN agencies active in Yemen, including UNDP, UNHCR, UNICEF, UNFPA, WHO, and WFP.