Policy Updates

From June 16 to 18, 2025, AFD Group CEO Rémy Rioux visited Ukraine and Moldova, signalling AFD's strengthened commitment to Ukraine’s reconstruction and European integration ahead of the Ukraine Recovery Conference in Rome on July 10 and 11, 2025.

Rioux highlighted that in Odessa, AFD supports the REHAB 1 program, implemented by EF, to improve mental health and rehabilitation services for civilians and veterans. In Kyiv, Rioux and French officials met Ukrainian ministers and advisers to prioritize financing for reconstruction, decentralization, and European convergence.

In Lviv, Rioux signed AFD’s first Ukrainian grant, totaling EUR5million (US$6 million), with the mayor for urban mobility, improving access to the Unbroken rehabilitation center for over 150,000 displaced people. This project, supported by GIZ, the European Commission, and EBRD, paves the way for future direct loans to Lviv.

In Moldova, Rioux met Moldovan Prime Minister Dorin Recean, Deputy Prime Minister Cristina Gherasimov, and Energy Minister Dorin Junghietu to confirm AFD as a leading bilateral partner and a key implementer in the European Growth Plan, which totals EUR1.9billion (US$2.2 billion) over 2025–2027. The INSPIREE program, AFD's first investment in Moldova and co-financed with the KfW, is planned to boost energy security by renovating public buildings.

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 June 12, 2025, German Defense Minister Boris Pistorius announced a EUR9 billion (US$10.4 billion) support package for Ukraine, making Germany the second-largest donor after the US.

The package includes EUR1.9 billion (US$1.4 billion) for joint defense production, with plans to manufacture long-range weapons in Ukraine.

This pledge builds on Germany’s total EUR48 billion (US$52 billion) in Ukraine assistance since 2022, of which EUR15.6 billion (US$18 billion) was military assistance. The pledge reflects Germany’s strategic shift toward long-term industrial partnerships and enhanced defense capabilities. The announcement signals Germany’s intent to lead European security efforts and bolster Ukraine’s resilience amid ongoing Russian aggression.

On June 2, 2025, IFAD president President Álvaro Lario called on Germany’s leadership as crucial to rekindle global solidarity amid rising inequality, conflict, and climate challenges at the Hamburg Sustainability Conference, meeting with the BMZ to reinforce IFAD’s partnership with Germany, focusing on tackling hunger, poverty, and youth unemployment in rural areas, where 80% of the world’s poorest reside.

Despite increased global wealth, acute hunger has tripled since 2018, now affecting nearly 300 million people in 53 countries. Climate extremes and conflict are rising, yet development funding falls short by an estimated US$4 trillion (EUR3.7 trillion) annually. Lario urged Germany to catalyze private sector investment and help close the development gap.

Lario emphasized that investing in small-scale rural producers is a strategic move for global stability and food security, not charity. With 1.2 billion young people seeking work—90% in developing countries—agriculture and food systems could unlock over US$4.5 trillion in new business yearly and create 120 million jobs, turning migration into a choice, not a necessity.

On May 26, 2025, Germany’s new CDU foreign minister Johann Wadephul has requested a comprehensive evaluation of the FFP, originally introduced in 2023, to shift focus towards traditional foreign policy priorities.

The article notes that the initial implementation of FFP was perceived as inconsistent by both supporters and critics. There has been no full evaluation of its impact, unlike in Sweden, where a formal review was conducted before the policy was ended. Key questions identified include which outcomes were achieved, what challenges arose, and which elements could be relevant for future policy, regardless of political leadership.

The AA continues to see underrepresentation of certain groups, including women, people of colour, and people with disabilities. Applications for diplomatic posts have also decreased, which is partly attributed to perceptions of outdated organizational structures.

Some countries, such as Mongolia, Colombia, and Panama, developed closer relations with Germany during this period. However, increased tensions with conservative groups were also observed, which mirrors findings from Sweden’s experience. Several departments within the AA have commissioned external reviews of FFP in their areas, but a comprehensive assessment at the ministry level is still pending.

On May 18, 2025, German Federal Minister of Health Nina Warken announced an additional EUR10million (US$11 million) in funding for the WHO ahead of the World Health Assembly, emphasizing Germany’s commitment to WHO reforms and pandemic preparedness following the US’ withdrawal from the organization.

The World Health Assembly, scheduled from May 19-27, 2025, will focus on adopting an international pandemic agreement. This agreement includes provisions to enhance global pandemic prevention, data sharing, and equitable vaccine access. Pharmaceutical companies will commit to donating 10% of vaccine production to WHO and selling another 10% at affordable prices for distribution to lower-income countries.

Germany’s contribution builds on its total funding of US$323 million for 2024–2025, underscoring its support for WHO’s core tasks, including global health monitoring and equitable healthcare access. WHO Director-General Dr. Tedros Ghebreyesus praised Germany’s leadership in strengthening global health systems and pandemic resilience.

On May 9, 2025, German Foreign Minister Johann Wadephu pledged an additional EUR40 million (US$43 million) in humanitarian assistance to Ukraine during a EU meeting in Lviv, underscoring Germany's continued support for Ukraine amid ongoing conflict.

The assistance package aims to address urgent needs, including medical assistance, shelter, and essential supplies for those affected by the war. Wadephul emphasized the importance of European solidarity.

On May 7, 2025, German Development Minister Svenja Schulze announced that Germany is shifting from traditional humanitarian assistance toward long-term development partnerships, aiming to reduce reliance on international development assistance workers by scaling down foreign deployments, focusing instead on funding local actors and state structures to build sustainable systems.

This move aligns with broader EU development goals and Germany’s emphasis on efficiency, local ownership, and geopolitical strategy. Critics warn the change may weaken rapid response capacity.

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.