Policy Updates

On March 27, 2024, Sida announced the cessation of its agreements with about 20 CSOs by the end of 2024.

The move is part of a broader shift towards a new ODA distribution model emphasizing a more open and competitive application process, slated to commence on January 1, 2025. This restructuring was a direct response to governmental mandates aiming to enhance the efficiency and reach of Swedish development assistance.

The abrupt end to these longstanding partnerships sparked a wave of concern and criticism among the affected organizations and their global partners. With a current budget of SEK1.8 billion (US$15 million), these strategic partnerships were a cornerstone of Sweden's development assistance, extending support to nearly 2,000 organizations worldwide. The collaborations spanned a diverse array of sectors, including labor unions, faith-based groups, environmental advocates, and human rights organizations, primarily targeting support in low- and middle-income nations.

Critics, including CONCORD Sweden, argued that the sudden shift jeopardizes the sustainability of critical development projects and undermines the implementation of ongoing initiatives. This, according to critics, not only threatens the continuity of vital programs but also risks the effective use of Swedish taxpayer contributions to global development.

On 13 March 2024, Sweden announced a new agreement between Sida and the USAID, which is set to advance sustainable development initiatives, prioritizing local initiatives and engaging the private sector closely.

The agreement was officially sealed in Washington DC on 4 March by Sida's Director-General Jakob Granit and USAID Deputy Administrator Isobel Coleman.

The agreement, slated to span the next four years, introduces new focus areas including digitalization, cybersecurity, the enhancement of global public goods like food security, climate action, and the improvement of transparency and oversight in 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, 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 October 17, 2023, Sweden committed EUR26 million (US$28 million) to strengthen Moldova's energy provisions, aiming to safeguard Moldova’s most vulnerable households during the winter and invest in the country's long-term energy infrastructure and efficiency.

Minister for International Development Cooperation and Foreign Trade Johan Forssell noted the severe impact of Russia’s full-scale invasion of Ukraine on Moldova's infrastructure and stability.

EUR17 million (US$18 million) of the funding is earmarked for the European Bank for Reconstruction and Development to augment its initiatives in Moldova. The remaining EUR9 million (US$10 million) will be allocated to an energy fund set up by Moldova and the UNDP to assist high-risk households during the winter.

Sweden has maintained a strong history of support to Moldova as one of its primary bilateral development assistance donors. Sweden has previously provided close to EUR17 million (US$18 million) in 2023 for ongoing reform initiatives in Moldova as part of Moldova's growing alignment with the EU. The initiatives aimed to prioritize democracy, human rights, gender equality, peaceful development, market economic progression, and ecological and climate sustainability.

On September 23, 2023, Swedish Foreign Minister Tobias Billström presented Sweden's development priority statement at the 78^th UN General Assembly.

In a speech predominantly centered on Ukraine, Billström emphasized Russia's tactics of weaponizing food, exacerbating the global food crisis. He pointed out Russia's recent imposition of its blockade against grain shipments across the Black Sea, which is restricting food supplies to many, including some of the world's most vulnerable populations.

Sweden underscored the need for the UN to persistently seek enhanced effectiveness and efficiency, particularly at the national level. Billström called for development assistance to work synergistically with trade, private investment, improved access to capital, and domestic resource mobilization.

Billström highlighted the pivotal role of MDBs in achieving the SDGs. He asserted that MDBs are instrumental in innovating financing methods and mobilizing substantial finances, including private capital and domestic resources. Sweden supported the modification of the MDB business model to address global challenges more effectively, ensuring that poverty reduction and climate change remain central to their mission.

Billström also highlighted the urgent need to mobilize climate finance from both public and private sectors, and to amplify support for local resilience and climate adaptation. Sweden pledged its continued commitment to adaptation and urged other nations to increase their contributions.

Sweden underlined that human rights, democracy, and the rule of law are essential for development. Billström stated that the rights of women and girls, as well as SRHR, are fundamental to development and are foundational for democracy.

On June 26, 2023, the Ministry for Foreign Affairs of Sweden unveiled a comprehensive humanitarian and recovery support package for Ukraine.

Valued at SEK380 million (US$35 million), the package aimed to address the pressing needs of the country, with a particular emphasis supporting CSOs.

The destruction caused by the Kakhovka dam's collapse on June 6, 2023, exacerbated the already dire situation in Ukraine. Minister for Foreign Trade and Development Johan Forssell underlined the necessity for aid providers to be prepared to assist civilians in distress. He foregrounded the funding's role in enabling partners to implement short- and long-term measures in the areas of greatest need.

Recognizing the valuable contributions of CSOs, the Swedish Government committed to providing SEK 25 million (US$2 million) to the Ukrainian Red Cross and supporting other organizations with SEK20 million (US$2 million) through Sida.

To address various urgent needs, Sweden also allocated funds to key entities involved in relief work:

• SEK25 million (US$2 million) was allocated to the International Committee of the Red Cross to provide healthcare, medicines, water, sanitation, and protection in inaccessible regions;
• SEK50 million (US$5 million) was allocated to the WFP for essential provisions such as food and water; and
• SEK50 million (US$5 million) was allocated to the UNHCR for shelter, legal advice, and psychosocial support in areas where humanitarian needs are most critical.

Additionally, the Swedish Government extended assistance for demining, flood response, and managing air traffic control to:

• The Swedish Civil Contingencies Agency, which received SEK50 million (US$5 million);
• UNDP, which received SEK103 million (US$10 million); and
• EUROCONTROL, which received SEK13 million (US$1 million).

Finally, the government also allocated SEK45 million (US$4 million) to the National Board of Health and Welfare for coordinating and fulfilling requests for medical supplies.

The additional support brought Sweden's total assistance to Ukraine to at SEK1.9 billion (U$S176 million) for humanitarian assistance, SEK750 million (US$70 million) for recovery and further development, and SEK316 million (US$29 million) for reform support since 2022.

On June 21, 2023, the G7+ Coordination Group established a clean energy partnership with Ukraine at a meeting in London.

In response to Russia's war against Ukraine, G7+ partners have continued to support Ukraine’s energy system with emergency finances in partnership with international organizations and private corporations. The G7+ Coordination Group confirmed its commitment to supporting Ukraine in building a cleaner energy system consistent with a Net Zero future. The so-called Clean Energy Partnership was developed with five main goals:

• Accelerating the adoption of EU energy legislation and increasing integration with the EU market;
• Increasing low carbon energy sources;
• Implementing transition policies to phase out coal power;
• Upgrading energy infrastructure; and
• Attracting innovative technological and financial solutions.

The Government of Ukraine has committed to doing its part in realizing these progressive goals and will work closely with the G7+ to do so.

In an interview on June 6, 2023, Swedish Minister for International Development Cooperation and Foreign Trade Johan Forssell stated the government's ambition to bring increase private sector involvement in development policy.

Forssell emphasized the need for a modern approach to development, where trade and assistance are seen as two sides of the same coin.

Forssell explained that the Swedish government, including the right-wing populist Sweden Democrats, are working to reshape the country's ODA policy to give the business sector a key role. He also noted that the new policy aims to create partnerships that benefit both recipient countries and Sweden by promoting economic development and job creation.

This shift elicited criticism from some CSOs organizations, which accused the government of prioritizing Swedish exports over helping people in partner countries. In contrast, Forssell argued that trade, the market economy, and entrepreneurship are essential for building prosperity and fighting poverty, and that the involvement of the business sector would contribute to this goal.

According to Forssell, the government's new approach includes expanding cooperation between development organizations and businesses, focusing on areas such as green transition and investing in LICs and MICs. At the same time, government plans also reduced the aid budget and abandoned the long-standing goal of allocating 1% of GNI to ODA.

Proposed changes to Sweden's development policy also included replacing the Director-General of Sida to strengthen the agency's expertise in trade and commerce.

On May 4, 2023, Swedish Minister for International Development Johan Forssell published an article in the Dagen Daily outlining Sweden's ODA priorities.

Co-written with Gudrun Brunegård, development policy spokesperson for the governing Christian Democratic Party, the piece emphasized the importance of maintaining international solidarity and improving the effectiveness of Swedish ODA. In particular, the piece outlined nine aspects of Swedish development cooperation:

• Increased and predictable assistance: With a fixed budget framework of SEK56 billion (approximately US$5.5 billion) per year for 2023-2025, the authors outlined a clear, upward trajectory for Swedish ODA. Over the next three years, Sweden will spend a total of SEK168 billion (about US$16.5 billion) on ODA, or a SEK6 billion (US$583 million) increase from the 2020-2022 period.
• Linking ODA and international trade: The authors highlighted that development assistance and trade policy should be coordinated and deepened, while also advancing democracy and the rule of law in partner countries.
• CSO Partnerships: The authors outlined the government's ambition to develop its partnership with civil society, both in Sweden and in its partner countries, in order to deliver more effective and transparent assistance.
• Ukraine a Top Priority: The article higlighted that Ukraine will remain Sweden's top ODA priority. In particular, the authors positioned Sweden as a long-term partner to Ukraine, with increased focus on humanitarian aid while supporting Ukraine's democratic development, economy, EU integration, and sustainable reconstruction.
• Global Health: The article also reflected the government's commitment to poverty reduction and health interventions for the most vulnerable, such as preventive health education, increased vaccination coverage, and strengthened healthcare. Support will be given to women subjected to sexual violence in conflict areas. Sweden will also contribute to international efforts to prevent and manage pandemics and other health threats.
• Democracy and human rights: The article also emphasized the necessity of expanding democracy, human rights, and the rule of law to enable CSOs to work effectively in partner countries.
• Climate: The piece outlined Sweden's prioritization on expanding climate finance. Specific priorities included emissions reductions, transition to fossil-free energy, and energy efficiency, as well as support for climate adaptation in culnerable countries. The authors also applauded Sweden's doubled allocation to the Global Environment Fund (totaling SEK4.1 billion; US$431 million) for the 2022–2026 period.
• Gender Equality: Under the heading of gender equality, the authors noted Sida's upcoming strategies on SRHR and commitment to considering the needs of women, girls, youth, people with disabilities, and LGBTQ+ individuals.
• 'Aid Effectiveness': Finally, the authors argued that Sweden should concentrate on improving the efficiency and impact of its development coopration.