Policy Updates

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 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.

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 April 25, 2025, the German Development Minister Svenja Schulze stressed the need to strengthen multilateral cooperation to address climate change, conflict, and inequality at the World Bank Spring Meetings, reaffirming Germany's commitment to the World Bank's reform agenda, including increased focus on climate resilience, poverty reduction, and gender equality.

Schulze pledged continued German support for the IDA , and backed the ongoing reform to enhance its financial capacity through innovative tools such as hybrid capital and portfolio guarantees, emphasizing that global challenges require joint, reliable funding efforts.

She called for expanded partnerships between the World Bank, other multilateral development banks, and private sector actors to mobilize more resources for global development goals. Schulze also highlighted the need to integrate climate action and social protection into its core mission without losing focus on poverty reduction.

On April 9, 2025, the CDU/ CSU and SPD parties in Germany finalized their coalition treaty, where Chancellor-designate Friedrich Merz, Bavarian Minister-President Markus Söder, and SPD Co-Chairs Lars Klingbeil and Saskia Esken presented an agreement that focuses on Germany’s global leadership, economic modernization, and migration control.

Key highlights include:

• BMZ remaining independent: The BMZ will retain its independent status, with Minister Svenja Schulze expected to continue her leadership. This decision reflects advocacy efforts from various stakeholders and ensures BMZ’s role in Germany’s development policy;
• ODA target revised: For the first time in 30 years, the 0.7% ODA/ GNI target has been excluded from the coalition treaty. Instead, the treaty calls for reducing the ODA quota to consolidate the federal budget. Germany’s ODA contribution was 0.82% of GNI in 2023 but saw a EUR940 million (US$1 billion) cut to BMZ ’s budget in 2024. Voluntary contributions to international organizations are also set to decrease;
• A new development policy approach: The treaty outlines a shift toward aligning development policy with Germany’s geopolitical and economic interests. It calls for consolidating development-related responsibilities under BMZ leadership, potentially including initiatives like the International Climate Initiative, currently housed in the BMWK;
• Strengthened inter-ministerial cooperation: The treaty emphasises better coordination across BMZ, the AA, and the BMVg to improve policy coherence and align development efforts with strategic objectives;
• Commitment to sovereign debt and tax systems: The treaty reaffirms support for resolving sovereign debt crises and strengthening tax systems in developing countries, aligning technical and financial cooperation with European development policy; and
• The climate sections remaining unchanged: The climate sections remain consistent with earlier drafts, with a focus on domestic action over international initiatives.

This coalition treaty signals a strategic pivot in Germany’s development policy, prioritizing geopolitical alignment and fiscal consolidation.