Policy Updates

On October 20, 2026, it was reported that IDB was considering removing its target to spend at least 45% of its portfolio on climate finance, a move that would affect both IDB and its private sector arm, IDB Invest.

The IDB committed to invest 45% of total approvals in green and climate finance, rising to 50% by 2030. In 2024, the bank met the 45% target by approving US$5.6 billion. The IDB Group confirmed that it is considering the issue, stating that discussions with other multilateral development banks focus on how best to measure success and do not change its climate commitment.

Sources expected the announcement after COP31 in mid-November 2026, although some board countries wanted to delay the decision. If finalized, the move would make IDB the second multilateral development bank to drop a climate finance target in 2026, after the World Bank did so in June 2026, allegedly under pressure form the US. Reports state that the ADB is expected to follow suit.

On October 5, 2026, Ambroise Fayolle, vice president of the EIB, announced that the EIB planned to double its climate adaptation finance to EUR30 billion (US$34.3 billion) through 2030.

The EIB will face a complex year ahead, however. Discussions remain heated around the size of the next MFF, while seven EIB shareholder countries, including France, Spain, Poland, Italy, Finland, Estonia, and Greece, prepare to hold national elections amid rising support for far-right parties. Though these elections have the potential to shape the direction of the EIB board, Fayolle said he was not overly concerned about them and preferred to wait until they occurred before assessing their impact.

On September 17, 2026, the Korea International Cooperation Agency (KOICA) and the Green Climate Fund (GCF) signed a project agreement to implement an urban climate resilience project in Ethiopia, marking the first GCF project implemented by KOICA.

The Building Urban Climate Resilience through Nature-based Solutions in Ethiopia project reflected a shared commitment to supporting country-led climate action. With US$25 million in GCF financing and US$22 million in KOICA co-financing, the project aimed to help Addis Ababa and Jimma address growing risks from floods and heat through nature-based solutions. Planned activities included the restoration of forests, wetlands, and river corridors, as well as investments in greener and more climate-resilient urban spaces.

On August 17, 2026, Norway reported NOK30 billion (US$3.3 billion) in 2025 climate financing, more than quadrupling annual funding from NOK7 billion (US$770 million) in 2020 and meeting its 2021 pledge to double climate financing and at least triple adaptation support by 2026.

Norway’s Minister for International Development Åsmund Aukrust attributed the increase mainly to private capital mobilized through the Climate Investment Fund, managed by Norfund. Mobilization reached NOK16 billion (US$1.8 billion) in 2025, an 181% increase from 2024. Aukrust cautioned that annual mobilization could decline in 2026 because investment levels vary.

Norwegian financing supported renewable energy, rainforest protection, and measures to strengthen resilience to floods, droughts, and other climate-related disasters. Norfund CEO Erik Sandersen said combining public funds with private investment could increase the climate impact of each krone spent.

Norway provided NOK3 billion (US$333 million) for climate adaptation in 2025, a 5% increase from 2024. The government plans to announce a new climate-financing target before the end of 2026. Developing countries are estimated to need US$2.5 trillion annually by 2030 for emissions reductions and climate adaptation.

On April 29, 2026, Canadian Secretary of State for International Development Randeep Sarai announced CAD52 million (US$38 million) for new international assistance programming to advance innovative financing, strengthen global impact investing, and expand blended finance solutions for partner countries.

Sarai made the announcement at the G7 Development Ministers’ Meeting in Paris, France. The package includes five initiatives:

• Advancing Canada’s Leadership in Impact Investing Project, implemented by the Canada Forum for Impact Investment and Development, funded at CAD1.9 million (US$1.4 million) over six years: Will strengthen standards, knowledge sharing, and collaboration among Canadian and international impact-investment actors
• Advancing Global Blended Finance with Canada’s Support, implemented by Convergence Blended Finance, funded at CAD7 million (US$5 million) over six years: To support market intelligence and the design of blended finance structures to unlock additional private investment in low- and middle-income countries.
• Allianz Credit Emerging Markets Fund, implemented by Allianz Global Investors, funded at CAD28 million (US$20 million) over 22 years: Will help scale an emerging‑markets debt fund designed to mobilize institutional capital toward sustainable economic growth and climate action, targeting climate‑aligned sectors such as clean energy, sustainable infrastructure and climate‑smart agriculture.
• SOURCE Platform for Infrastructure, implemented by the Sustainable Infrastructure Foundation, funded at CAD4.6 million (US$3.4 million) over two years: Will strengthen the SOURCE platform, a global infrastructure project‑preparation tool used by governments to design, assess and manage high‑quality, sustainable infrastructure projects.
• Global Innovation Fund Growth, implemented by Global Innovation Fund Growth Ltd., funded at CAD10 million (US$7.3 million) over 11 years: Will help grow evidence‑based, high‑impact innovations that improve the lives of people in targeted markets in Africa and South and Southeast Asia, supporting enterprises with strong potential for commercial sustainability and social impact.

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- COP 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.