Policy Updates

From February 16-18, 2024, the Munich Security Conference hosted global leaders to discuss pressing issues such as the Russian invasion of Ukraine and the Israeli-Palestinian conflict, alongside calls for increased global financial allocation for sustainable developing

The agenda and many side events were dominated by discussions surrounding the Russian invasion of Ukraine and the Israeli–Palestinian conflict.

Several statements from high-level individuals focused on the insufficiencies of the current global financial architecture. Among them was UN Secretary General António Guterres, who requested an additional allocation of US$500 billion annually to provide accessible, long-term financing for low- and middle-income nations to invest in achieving the SDGs.

Some CSOs took the opportunity to advocate for the 0.7% financing goal for ODA during the conference, which highlighted uncertainty following Germany's budget crisis, which began in late 2023. The One Campaign issued a statement advocating for the 0.7% target, signed by various influential figures of German politics, including former German President Horst Köhler, former Minister of Development Gerd Müller, and Chair of the Munich Security Conference Christoph Heusgen.

Sustainable food systems was another prominent topic at the conference. The WFP presented its new global Innovation Accelerator office during one of the side events of the conference. The Accelerator is slated to utilize innovation and technology to address food insecurity globally, according to the WFP.

On December 6, 2023, during COP28, EU Commissioner for the Environment, Oceans, and Fisheries Virginijus Sinkevičius, as well as representatives from Germany, the Netherlands, and France, launched the Team Europe Initiative on Deforestation-free Value Chains and pledged an initial EUR70 million (US$76 million) to the initiative.

The initiative aims to tackle global deforestation and reinforce the pledges set forth in the Glasgow Leader's Declaration on Forests and Land Use from COP26, with the goal of stopping and reversing forest loss and land degradation by 2030. It is also aligned with the EU's Global Gateway strategy, which aims to transition partner countries to sustainable, deforestation-free, and legal value chains.

The initiative was developed to support inclusive partnerships between the EU and partner countries, facilitate sustainable trade, and address deforestation. Through the initiative, the EU is slated to offer technical assistance and capacity-building assistance to partner countries on key issues, including traceability, geo-localization, and land-use mapping. The initiative is also planned to serve as a centralized platform to bolster coordination between public and private stakeholders in both the EU and partner countries.

A Team Europe Hub will be established under the Sustainable Agriculture for Forest Ecosystems program to host information and coordinate further actions.

On December, 6, 2023, the German government adopted its first-ever strategy on climate foreign policy, which was presented during COP28.

The whole-of-government strategy defined climate priorities, synthesized financial commitments, and set an action plan to drive the implementation of the Paris Agreement in cooperation with European partners.

The strategy reiterated Germany's existing climate finance target of EUR6 billion (US$6.5 billion) annually by 2025. It emphasized states disproportionately affected by the climate crisis, notably countries in Africa and SIDS. Key partners countries included Brazil, Indonesia, Senegal, South Africa, Vietnam, India, and China.

The strategy outlined six priorities:

• Drastically reducing global greenhouse gas emissions by 2030 to accelerate the global energy transition;
• Making the German economy competitive and fit for the future while ensuring climate justice;
• Bolstering solidarity with the most vulnerable by preserving natural resources and protecting health;
• Protecting, restoring, and promoting the sustainable use of ecosystems;
• Strengthening resilience, peace, and security; and
• Making international financial flows consistent with a 1.5 °C-compatible pathway and climate-resilient development.

On December 4, 2023, Canada announced a pledge of CAD34 million (US$25 million) for the Special Climate Change Fund, hosted by the GEF.

The announcement was part of a joint statement released by Canada and the governments of Belgium, France, Germany, Norway, Spain, Sweden, and the UK during COP28. Canada’s pledge to the fund will support in accelerating climate change adaptation in SIDS and catalyzing technology transfer, innovation, and private sector engagement for adaptation.

On December 2, 2023, during the opening days of COP28, outgoing Dutch Prime Minister Rutte announced a commitment of EUR15 million (US$16 million) to help establish the Loss and Damage Fund.

The EUI pledged US$125 million, Germany and the UAE each pledged US$100 million, the UK pledged GBP60 million (US$78 million), the US pledged US$18 million, and Japan pledged US$10 million. The total funds surpass the US$400 million needed to initiate the establishment and operation of the Loss and Damage Fund.

Dutch NGO ActionAid Netherlands responded by commenting that while the pledge is a fair initial contribution to the fund, it is far from a "fair share" for the Netherlands when based on the country’s emissions levels.

On December 2, 2023, the EU institutions, the EIB, the EBRD, and the Member States that comprise Team Europe pledged EUR20 billion (US$21.8 billion) for clean energy partnerships with African partners.

The funding announcement listeed EUR3.4 billion (US$3.7 billion) in grants and covered the period from 2021-2027. The project, AEGEI, aims to produce over 50 Gigawatts of renewable energy by 2030.

12 EU Member States contributed to the funding. No language regarding specific partner countries was included in the announcement.

On November 30, 2023, German Development Minister Svenja Schulze welcomed COP28's launch of the Loss and Damage Fund and committed US$100 million to the fund.

Countries in attendance agreed to a compromise proposal developed by Germany and other nations to launch the fund. Schulze and the UAE both announced commitments of US$100 million to the fund, securing the minimum funding needed to operationalize the fund, and called on others to follow suit.

Germany and the V20 have pushed for rapid implementation of the fund's objectives, including proposed principles based on experiences from the Global Shield against Climate Risks. The key principles mentioned by Schulze included strengthening country ownership, supporting holistic policies, and investing in solutions to limit climate damages.

On October, 5, 2023, Germany hosted the GCF's second replenishment conference in Bonn and pledged EUR2 billion (US$2.1 billion) to the fund, with the total from participating countries amounting to US$9.3 billion for 2024-2027.

25 countries announced pledges during the replenishment conference, with at least 5 additional countries expected to make further announcements. Two-thirds of participating countries have increased their contribution compared to the previous replenishment cycle, including Germany. German Development Minister Svenja Schulze highlighted that Germany is contributing its fair share and called on other to do the same. Further pledges are expected ahead of COP28 in November 2023.

On September, 29, 2023, the BMZ and the BMWK submitted information to the EU Commission stating that Germany's international climate financing has increased to EUR6.4 billion (US$6.8 billion) in 2022, exceeding the EUR6 billion (US$6.4 billion) international climate financing pledge three years ahead of its 2025 deadline.

Development Minister Svenja Schulze stated that Germany is contributing its fair share to the global US$100 billion commitment for climate financing and called on other donors to follow suit.

According to data published by the BMZ and the BMWK, German climate financing has increased by EUR1 billion (US$1.1 billion) compared to 2021. 44% of 2022 climate financing is earmarked for climate adaptation, which indicated that Germany is on track to double international climate adaptation finance by 2025. 86% of climate financing came from from the BMZ. The reminder came primarily from the BMWK's coordinated international climate initiative.

On September, 20, 2023, German Chancellor Olaf Scholz called for increased climate ambition alongside UN General Secretary Antónia Guterres at a climate summit on the sidelines of the 78^th UN General Assembly.

Scholz reiterated the need to act decisively on climate change. He emphasized that the German commitment to support international climate policy with EUR6 billion (US$6.4 billion) in funding annually has already materialized, two years ahead of the 2025 goal.

Despite domestic criticism for its climate policies, Germany was highlighted on a short list at the Climate Ambition Summit and granted a three-minute speech in front of the UN General Assembly. However, experts criticized Scholz's failure to sign a declaration of the "High Ambition Coalition" of countries calling for a more rapid climate transition at the summit.