Policy Updates

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 September 18, 2025, the German Bundestag approved the 2025 federal budget, which included an 8% cut of EUR910 million (US$1.1 billion) to the Federal Ministry for Economic Cooperation and Development (BMZ) and a 47% cut of EUR1.3 billion (US$1.5 billion) to humanitarian assistance, prompting warnings of drastic consequences from ODA agencies.

The new federal budget totals EUR502.5 billion (US$588.9 billion), with priorities set on social and defense spending. Development Minister Reem Alabali Radovan stated that in view of increasing crises, Germany is investing far less in international cooperation. Despite the government's stated commitment to multilateralism, multilateral cooperation was disproportionately affected.

Key changes to development, humanitarian, and health funding include:

• A cut of EUR910 million (US$1.1 billion) to the BMZ, an 8% decrease from 2024;
• A cut of EUR1.3 billion (US$1.5 billion) to humanitarian assistance, a 47% decrease from 2024;
• A cut of EUR296 million (US$345 million) to multilateral cooperation, a 13% decrease from 2024;
• A 19% reduction in contributions to the GPEI to EUR30 million (US$35 million);
• A 20% reduction in contributions to the World Bank, amounting to a EUR201 million (US$236 million) cut;
• A 15% increase to the Ministry of Health’s budget compared to 2024; and
• A 4% increase to the BMFTR budget, which funds global health R&D.

ODA organizations warned that the consequences would be drastic. Thorsten Klose-Zuber, Secretary General of the NGO Help, stated the cuts could result in over four million people losing food assistance and 1.5 million people losing basic health care. While Minister Alabali Radovan acknowledged the impact, she sought to distance the German government's actions from the larger-scale aid reductions made by the former US administration under Donald Trump, highlighting the destabilizing effects those cuts had in places like Kenya.

The budget sparked considerable debate in the Bundestag. Jamila Schäfer of the Green Party called the cuts irresponsible. In contrast, Inge Grässle of the CDU argued that good results could still be achieved with the new funding levels. The far-right AfD party had argued for even more severe cuts, with lawmaker Mirco Hanker arguing that development spending was a 'waste of taxpayers' money.

Long-term financial planning suggests further reductions for the BMZ, with its budget projected to decline to EUR9.3 billion (US$10.9 billion) by 2029.

On September 15, 2025, a UN Women report revealed that progress on women's rights is stagnating and regressing due to conflict, aid cuts, and a backlash against gender equality, and called on governments at the UN General Assembly in New York to commit to renewed action, highlighting that the US$420 billion needed annually to advance gender equality is a fraction of the US$2.7 trillion spent on the military.

The report, a gender snapshot monitoring progress on the SDGs, found that 676 million women and girls lived near deadly conflict in 2024, the highest number since the 1990s. Women are also more likely to be affected by rising food insecurity. The report projects that climate change could push an additional 158.3 million women and girls into extreme poverty by 2050.

Director of UN Women’s policy division, Sarah Hendriks, contrasted the US$2.7 trillion in annual military spending with the estimated US$420 billion needed to advance gender equality. The report also noted a digital gender divide, which if addressed, could lift 30 million women and girls out of poverty by 2050 and generate a US$1.5 trillion increase in global GDP by 2030. UN Women is calling for renewed commitments at the UN General Assembly, 30 years after the Beijing Declaration.

On September 8, 2025, at the Second Africa Climate Summit in Addis Ababa, the AU, EU, and Germany launched two flagship energy programmes, CEPA and ENGAGE, to accelerate the implementation of the African Single Electricity Market, backed by the EU's US$174.9 billion Global Gateway investment package.

The programmes aim to advance the AfSEM and the CMP. These initiatives are key components of the AU's Agenda 2063 and are designed to create a fully integrated, cross-border electricity market, targeting the creation of the world's largest interconnected power market by 2040.

The launch celebrated 25 years of the AU-:abbrEU partnership. Speakers including Dr. Kamugisha Kazaura for the AU, Her Excellency Nardos Bekele Thomas of AUDA-NEPAD, Her Excellency Teresa Ribera for the European Commission, and Dr. Bärbel Kofler for Germany's BMZ, all highlighted the programmes' role in attracting investment to deliver reliable, affordable, and clean energy. Over 600 million people in Africa currently lack access to electricity.

On September 2, 2025, ONE released a report indicating that the German government's proposed development budget cuts could lead to an estimated 650,000 deaths, nearly three million children unvaccinated against polio, and fail to prevent nine million new infections of AIDS, tuberculosis, and malaria.

The report highlights a significant planned decline in the budget of the BMZ by 2026, amounting to a 28% decrease from 2022 levels. During the same period, Germany's defense spending is set to increase to more than EUR86 billion (US$100 billion). The report highlights that the cuts represent just 0.05% of the total federal budget but may have life-threatening consequences for millions of people globally.

The report focused on the impact of a combined EUR542 million (US$632 million) reduction for 2025 and 2026 across four major international health and development organizations:

• The GFATM faces the largest cut of at least EUR350 million (US$408 million), with a potential additional reduction of EUR100 million (US$117 million) under discussion. This could result in 650,000 preventable deaths and a failure to stop nine million new infections;
• Funding for the GPEI is set to be halved between 2024 and 2026, a reduction of EUR18 million (US$21 million) that would leave 2.8 million children unvaccinated and risk 18,500 cases of permanent paralysis;
• A EUR160 million (US$187 million) cut to the IDA, the World Bank’s fund for the lowest-income countries, is projected to block between EUR500 million (US$583 million) and EUR600 million (US$700 million) in leveraged investments for health, water, and social safety nets; and
• Germany’s contribution to the UNFPA is expected to drop by one-third by 2026,falling from EUR43 million (US$50 million) in 2024 to EUR28 million (US$33 million) in 2026, endangering up to 925 lives and leaving hundreds of thousands of women and girls without access to health services and protection from violence.

On August 25, 2025, German Vice Chancellor Lars Klingbeil met with Ukrainian President Volodymyr Zelenskyy in Kyiv, reaffirming Germany's support with a pledge of EUR9 billion (US$10.5 billion) for 2025-2026.

During the visit, Klingbeil stated that Germany, as Ukraine's largest European supporter, would continue to stand by its side throughout the ongoing war. He emphasized that Ukraine can continue to rely on Germany's military and financial assistance.

Klingbeil stressed the importance of building a strong Ukrainian military and increasing domestic defense production to enable Ukraine to defend itself and deter future aggression. He also called for reliable security guarantees to ensure lasting peace for both Ukraine and the broader European continent, stating that Russian President Vladimir Putin should have no illusions about Germany's support crumbling.

On August 25, 2025, German Development Minister Reem Alabali Radovan began her visit to Israel, the Palestinian territories, Jordan, and Saudi Arabia to discuss the future of Gaza and regional stabilization, completing her trip on August 28, 2025.

The visit was a continuation of Germany's efforts to address the humanitarian situation and plan for Gaza's future. The Minister's goal was to gather support from regional partners for the significant joint effort required for rebuilding.

In Ramallah, Alabali Radovan met with Prime Minister Mohammad Mustafa and other ministers to discuss short-term recovery and long-term governance under the Palestinian Authority. In Jordan, she met with Planning Minister Zeina Toukan and UNRWA's Deputy Head Natalie Boucly. Talks in Saudi Arabia were planned with the Saudi Fund for Development, the counterpart of Germany’s KfW. The Minister also met with families of Israeli hostages in Tel Aviv.

On August 14, 2025, the German government announced an additional EUR6 million (US$7 million) in humanitarian assistance for Afghanistan to address the urgent needs of over 23 million people, channeling the funds through the WFP and other NGOs.

The German government provided the additional funding from the budgets of the FFO and the BMZ. The funds, which will bypass the de facto Taliban government, are intended to provide food and maintain life-saving basic healthcare.

The support will primarily target returning Afghans and communities in border regions, with a special focus on women and children. The German government reiterated its call for the de facto Taliban government to lift restrictions on women's freedom of movement and work and to ensure unhindered access for the needs-based distribution of humanitarian assistance to all people in need.

On July 30, 2025, the German government published its 2026 draft budget, confirming a continued cut to Germany’s development spending and projecting a fall in the ODA/GNI to 0.52%.

The 2026 draft budget outlined a EUR9.9 billion (US$11.5 billion) allocation for the BMZ, a 3% decrease of EUR331 million (US$383 million) compared to the 2025 draft. The department's budget is planned to shrink further to EUR9.3 billion (US$10.8 billion) by 2029. This corresponds to a fall in ODA/GNI is from 0.56% of GNI in 2025 to 0.52% in 2026, and further to 0.43% by 2029.

Other ministries also faced cuts:

• The AA was allocated EUR6.1 billion (US$7.1 billion), a slight increase from 2025. The budget line for humanitarian assistance and crisis prevention remained unchanged at EUR1.43 billion (US$1.7 billion), following a 47% cut between 2024 and 2025;
• The BMG’s envelope for global health was set at EUR122 million (US$141 million), a decrease of EUR10 million (US$12 million) from 2025; and
• The BMFTR saw an overall budget decrease of 5%, and its budget line for health research, medical technology, and global health is cut by 15% to EUR327 million (US$379 million).

German Finance Minister Lars Klingbeil described the cuts as a political compromise, stating that coalition partners had pushed to either dismantle the ministry or significantly reduce its funding and supported Development Minister Reem Alabali-Radovan's pledge to improve spending efficiency.

Parliamentary discussions on the 2026 budget draft are set to commence following the summer recess, with final decisions expected at the Budget Committee’s settlement meeting in November 2025.

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.