Policy Updates

On August 26, 2025, the UNDP Climate Finance Network and UNCDF convened over 150 participants from 20 countries in Bangkok for a dialogue on mobilizing inclusive climate finance to build resilience in the Asia-Pacific region.

The dialogue addressed the Asia-Pacific region's extreme vulnerability to climate change and the widening gap between funding needs and available resources. UNDP Deputy Regional Director Christophe Bahuet noted the importance of equipping governments with sustainable finance mechanisms to respond to crises. With official development assistance projected to decline, UNCDF's Maria Perdomo stressed the urgent need to mobilize private sector capital for climate action, particularly in the most vulnerable countries.

Key partners, including the UK's FCDO and Sweden, echoed the dialogue's urgent message. Head of Climate and Environment, Indo-Pacific Regional Department at the FCDO John Warburton emphasized that adaptation finance is a matter of survival and fairness. Annamaria Oltorp from the Embassy of Sweden highlighted the need to mobilize resources and forge stronger public-private partnerships to drive collective climate action.

The conference also highlighted successful regional initiatives, such as Indonesia raising over US$10 billion through green bonds and Thailand raising over US$800 million from sustainability-linked bonds. The three-day event aims to find pathways for stronger collaboration and new financing initiatives to accelerate access to climate finance for vulnerable communities.

On August 14, 2025, the resumed 5^th session of the INC-5.2 in Geneva, Switzerland, concluded without reaching a consensus on a legally binding treaty to end plastic pollution, though UNEP Executive Director Inger Andersen and UN Secretary-General António Guterres noted that all member states agreed to continue negotiations.

Negotiations to establish a legally binding instrument to end plastic pollution concluded without an agreement. UN officials, including UNEP Executive Director Andersen and UN Secretary-General Guterres, acknowledged the outcome but emphasized that all countries remained committed to the process. The talks, which included delegates from 183 nations and representatives from over 400 CSOs faced significant differences on key issues.

The US delegation supported an agreement that allows for tailored, country-specific solutions to reduce plastic pollution while opposing prescriptive, top-down regulations. INC Chair Luis Vayas Valdivieso and INC Executive Secretary Jyoti Mathur-Filipp reaffirmed their dedication to moving forward and achieving a future agreement.

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.

On June 4, 2025, new findings from the Global Climate and Health Alliance showed that only 21 of 195 countries party to the UNFCCC Paris Agreement have submitted updated NDCs for 2035, nearly four months past deadline with most NDCs mentioning health benefits, such as reduced air pollution, but few including systems to track health outcomes.

The GCHA reviewed 11 countries’ NDCs and found that while many reference health benefits, only the UK’s plan includes specific air quality monitoring. Kenya’s NDC aims for 100% renewable energy and a 35% emissions cut by 2035, yet does not explicitly measure air pollution benefits. Brazil’s NDC focuses on deforestation and fossil fuel transition but lacks clarity on new oil extraction and zero deforestation pledges. The US, after submitting its plan, has withdrawn its targets, weakening global momentum.

Recent NDCs highlight varied approaches: New Zealand targets “super pollutants” but is seen as unambitious; Japan’s continued fossil fuel use has significant health impacts; Canada is phasing out coal; and the UAE is developing a national monitoring system. However, most plans fall short of the 1.5°C goal, with the UK as a notable exception.

The World Bank estimates that halving global exposure to dangerous air pollution by 2040 would require annual investments to rise from US$9 billion in 2020 to US$14 billion in 2040. Despite this, climate finance commitments remain inadequate, and the ;abbrUS exit further strains resources.

On May 27, 2025, the UK FCDO celebrated milestones of the LSAP in Belize, funded under the UKCIF, where the UK US$32million to the Coastal Road Upgrading Project aimed at boosting economic resilience and creating sustainable livelihood opportunities in Gales Point and Mullins River villages.

Achievements include formalizing 80 MSMEs, surpassing the target of 40. Of these, 43 are female-owned and 37 male-owned. Additionally, 72 participants received entrepreneurial development training, with 59 earning certification. A Buy Belizean exhibition featuring 14 MSMEs is scheduled for June 14, 2025, in Dangriga Town.

The initiative reflects a strong commitment to inclusive economic development, job creation, and community empowerment, showcasing the deep engagement of local communities and the success of UK -Belize partnerships.

On May 27, 2025, BOND highlighted the UK government's opportunity to address global debt challenges as a countermeasure to the ODA cuts which are set to drop to 0.3% of GNI by 2027, and urged action on debt to mitigate the impacts of reduced funding and growing climate and development crises.

The organization emphasized the UK’s pivotal role, given its jurisdiction over sovereign debt contracts, and proposed reforms like a UN debt framework convention and improved transparency. It also advocated for legislative updates to compel private creditor participation in debt relief and measures to prevent liquidity crises in LICs.

BOND underscored that action on debt could restore fiscal space for developing nations, enabling investments in social services, climate adaptation, and economic development, while reinforcing the UK’s global leadership and commitment to poverty reduction.

On February 1, 2025, the UK government has announced GBP22 million (US$26 million) in additional humanitarian assistance for Myanmar in 2024-2025 to support nearly one million vulnerable people.

This funding will provide essential healthcare, nutrition assistance, and treatment for diseases such as tuberculosis and malaria. The support will also strengthen climate resilience by improving food security, water management, and disaster preparedness, helping communities withstand extreme weather events.

On January 24, 2025, the UK government’s discussions within the House of Commons on the Climate and Nature Bill were suspended.

This bill would make it legally binding for the UK to meet its international climate agreements. It was originally introduced by Liberal Democrat Roz Savage and was prevented over concerns from the Labour party that it was too ambitious and was unlikely to be upheld.

On December 3, 2024, UK Permanent Representative to the UN Ambassador Barbara Woodward made a speech at the FfD4 Second Preparatory event, highlighting the need to focus on international financial architecture reforms, and foster a bigger, better, and fairer financial system.

The FfD4 outcome hopes to build upon the Addis Ababa Action Agenda’s focus on an enabling environment, particularly towards women’s economic empowerment.

It will focus on vulnerability and the countries at risk of being left behind in order to improve shock responsiveness and progress State Contingent Debt Clauses and Disaster Risk Financing.

BII also announced a US$30 million investment in InfraCredit, to promote local currency financing to support the clean energy transition.

On November 28, 2024 UK Development Minister Anneliese Dodds announced the provision of GBP2 billion (US$2.6 billion), and increase of 40%, over three years to the IDA to go towards projects promoting economic growth, tackling poverty, and addressing the impacts of climate change.

The UK pledge for IDA20 was GBP1.4 billion (US$1.8 billiom) which was nearly a 50% cut from it's IDA19 pledge which was GBP3.1 billion (US$4 billion).

BOND welcomed the UK’s decision to increase its contribution to the World Bank’s IDA 21^st replenishment, calling it an important show of leadership ahead of the pledging conference. However, they urged the government to avoid cuts to other assistance areas by increasing the aid budget beyond 0.5% of GNI and setting a clear path to restore it to 0.7% in the upcoming Spending Review.