Policy Updates

The Australian government announced an AUD2.5 million (US$2 million) climate resilience package and signed three memoranda of understanding with the Federated States of Micronesia on maritime security and policing cooperation during the first official bilateral visit by a Federated States of Micronesia head of state in nearly 30 years.

Foreign Minister Penny Wong and Minister for Pacific Island Affairs Pat Conroy welcomed Federated States of Micronesia President Wesley Simina to Canberra on March 24, 2026. Australia and the Federated States of Micronesia signed three memoranda of understanding: one to enhance maritime security cooperation, enabling the Federated States of Micronesia to access support under Australia's increased investment in regional maritime security partnerships, and two to implement the Pacific Policing Initiative, the key policing cooperation mechanism in the Pacific.

Australia and the Federated States of Micronesia also announced an AUD2.5 million (US$2 million) climate resilience package drawn from the existing bilateral development budget. The package will support girls and children with disabilities in accessing safe drinking water and basic sanitation in schools, and fund upgrades to emergency evacuation shelters. Both governments reaffirmed their commitment to climate action, including a Pacific Pre-:abbrCOP in Fiji and a leaders' side visit to Tuvalu.

The UK government announced a fundamental reform of its development assistance approach, prioritizing fragile and conflict-affected states, women and girls, global health, and climate action, while reducing its ODA budget to 0.3% of GNI by 2027.

Foreign Secretary Yvette Cooper outlined the UK's new three-year development assistance framework on March 19, 2026, shifting focus from donor to investor and emphasizing partnership over paternalism. By 2028-2029, 70% of all geographic support will be allocated to the most fragile and conflict-affected states, with funding protected for Sudan, Palestine, Ukraine, and Lebanon. Annual ringfenced funding of GBP24 million (US$32 million) will address underlying causes of irregular migration.

At least 90% of FCDO aid programs will integrate gender equality by 2030, with central spending on preventing violence against women and girls protected at 2025-2026 levels. The UK reaffirmed support to Gavi, the Vaccine Alliance, and the Global Fund. GBP6 billion (US$8 billion) will be invested as International Climate Finance, bolstered by GBP6.7 billion (US$8.9 billion) in climate and nature-positive investments. Core funding to Education Cannot Wait will match the previous pledge of GBP80 million (US$106 million).

On January 7, 2026, US President Donald Trump ordered the US to withdraw from 66 international organizations, including 31 UN entities, cutting funding to organizations deemed contrary to US interests and alarming allies concerned about Washington's retreat from multilateralism.

Trump signed a presidential memorandum instructing all US government agencies and departments to cease participating in and funding 35 non- UN organizations and 31 UN entities. The White House stated the withdrawals would end US taxpayer funding and involvement in entities that advance globalist agendas over US priorities. The list of affected entities included:

• ECW;
• the IDLO;
• UNFPA;
• UNFCCC;
• IPCC;
• UNDESA;
• UNDEF; and
• UNCTAD.

The decision made no reference to major UN humanitarian agencies, including the IOM, the WFP, UN Human Rights, or UNICEF, though all faced severe US budget cuts during the past year. The announcement followed a February 4, 2025 presidential order directing a review of all international intergovernmental organizations.

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 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 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 19, 2025, the JICA distributed its first installment of a US$61 million loan agreement with Masdar IPH Wind S.A.E for a 200MW wind farm in Ras Ghareb, Egypt.

The project aims to increase the renewable electricity supply in Egypt and contribute to the reduction of greenhouse gas emissions. The financing is co-financed with the EBRD, PROPARCO, and the GCF.

The project includes the construction and operation of the wind farm, as well as transmission lines and substation facilities. The borrower, Masdar IPH Wind S.A.E, has a PPA with the EETC for the full purchase of the electricity generated, guaranteed by the Ministry of Finance of Egypt.

On September 19, 2025, the UN treaty to protect the high seas reached its required 60-ratification threshold after Morocco and Sierra Leone formally joined, clearing the way for its entry into force in January 2026.

The BBNJ agreement was adopted in June 2023. UN Secretary-General António Guterres called the ratification a historic achievement. UN Environment Programme Executive Director Inger Andersen also welcomed the development.

The agreement establishes legally binding rules to conserve and sustainably use marine biodiversity in the two-thirds of the ocean beyond national boundaries. The framework aims to create marine protected areas, ensure fair sharing of benefits from marine genetic resources, and strengthen scientific cooperation. Its entry into force on January 17, 2026, will support the GBF pledge to protect 30% of sea areas by 2030. Guterres urged all remaining Member States to join the treaty.