Policy Updates

On September 26, 2025, at a meeting of the AHLC, Norway and 11 other countries launched the Emergency Coalition for the Financial Sustainability of the PA, with Norway contributing NOK40 million (US$4 million) to a crisis package.

The coalition, which also includes Belgium, Denmark, France, Iceland, Ireland, Japan, Saudi Arabia, Slovenia, Spain, Switzerland, and the UK, was established to stabilize the PA’s finances and preserve its ability to govern. The launch took place during an AHLC meeting in New York chaired by Norwegian Minister of Foreign Affairs Espen Barth Eide, with Palestinian Prime Minister Mohammad Mustafa attending virtually. The coalition demanded that Israel immediately release all Palestinian clearance revenues, which constitute over 60% of the revenue the PA needs.

The crisis package aims to support essential services like hospitals and schools. Norway’s contribution is in addition to NOK200 million (US$20 million) in budget support transferred earlier in 2025. The coalition will also promote a sustainable and coordinated approach with IFIs to support reforms and ensure accountability, affirming the effort as an investment in regional peace and the two-state solution.

On September 19, 2025, the JICA distributed its first installment of a US$61 million loan agreement with Masdar IPH Wind S.A.E for a 200MW wind farm in Ras Ghareb, Egypt.

The project aims to increase the renewable electricity supply in Egypt and contribute to the reduction of greenhouse gas emissions. The financing is co-financed with the EBRD, PROPARCO, and the GCF.

The project includes the construction and operation of the wind farm, as well as transmission lines and substation facilities. The borrower, Masdar IPH Wind S.A.E, has a PPA with the EETC for the full purchase of the electricity generated, guaranteed by the Ministry of Finance of Egypt.

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 11, 2025, JICA and the Government of the Kingdom of Morocco signed a Record of Discussions in Rabat for a technical cooperation project to secure water resources through comprehensive sediment management.

The 48-month project focuses on creating a comprehensive sediment management plan for the Moulouya and Sebou River Basins. A key objective is the capacity development of all stakeholders, including local communities, to ensure effective planning and implementation of the management plan.

The agreement was signed by General Director Zerouali Abdelaziz of Morocco's Directorate General of Hydraulics and Chief Representative Tomoyuki Kawabata of the JICA Morocco Office. The project, implemented by the Directorate of Water Research and Planning, contributes to Sustainable Development Goal 6 (Clean water and sanitation) and Goal 13 (Climate action).

On September 7, 2025, Japanese Prime Minister Shigeru Ishiba announced his resignation, citing a historic defeat in the July 2025 parliamentary election, which cost his LDP its parliamentary majority.

The July 2025 election saw the ruling coalition lose its majority in the 248-seat upper house, compounding an earlier loss in the lower house. The public rebuked the party for its handling of the economy, immigration, trade relations with the US, a political finance scandal, and a rice shortage. The LDP has governed Japan nearly uninterrupted since the 1950s.

After resisting calls from within his party to step down for over a month, Ishiba announced his resignation one day before the LDP was scheduled to decide on holding an early leadership election, which would have served as a no-confidence vote. The pressure mounted after the party's internal review of the election loss called for a "complete overhaul." The LDP is expected to hold a leadership election in early October 2025 to choose Ishiba's successor.

The next prime minister will inherit a divided party and a minority government, requiring cooperation with opposition parties to pass legislation. While Ishiba recently secured a reduction in US tariffs on Japanese exports from 25% to 15%, the overall economic situation remains a primary concern for voters.

On August 21, 2025, the JICA and the Government of the Republic of Angola signed a Japanese ODA loan agreement worth JPY39,1 billion (US$263 million) to construct new transmission lines and substations to reinforce the transmission system in southern Angola.

The project aims to increase transmission capacity and stabilize the power supply in the region to enhance the living environment for residents and promote industrial activity. The funds will support the construction of a 220 kV transmission line, two new substations, and a 60 kV distribution line. The loan also covers the procurement of equipment to clear mines from the construction areas.

The loan has a repayment period of 30 years, including a 10-year grace period. The project, scheduled for completion in March 2030, is co-financed with the AfDB as part of the ACFA.

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 August 8, 2025, the JICA determined the issuance conditions for two "Africa-TICAD Bonds" totaling JPY23 billion (US$155 million) to finance development projects in Africa, coinciding with the 9^th TICAD.

The non-guaranteed Sustainability Bonds will be issued in two tranches: one of JPY15 billion (US$101 million) with a three-year maturity and another of JPY8 billion (US$54 million) with a five-year maturity.

The net proceeds are slated to support new or ongoing eligible projects within the JICA's Finance and Investment operations, as defined by the JICA Social/Sustainability Bond Framework. Funding will not be allocated to activities related to coal-fired thermal power projects. The initiative aims to mobilize private finance and support Africa's independent and sustainable growth.

On August 4, 2025, JICA announced a US$6 million loan agreement with Thu Dau Mot Water Joint Stock Company to expand the Bau Bang Water Supply System in Vietnam.

The loan, co-financed by the ADB, will fund the construction of a new water treatment plant and an associated pipeline. The project aims to improve the urban sanitation environment and support sustainable economic growth in Bau Bang Hamlet, Ho Chi Minh City. The initiative contributes to SDG 6 (Clean water and sanitation) and 17 (Partnerships for the goals).

On July 31, 2025, JICA held a signing ceremony for a US$90 million loan to HDBank to support Vietnam's agricultural sector.

The loan is co-financed with FinDev Canada and SMBC. The project aims to improve access to finance in Vietnam's agricultural sector by providing long-term loans through the bank, thereby contributing to the expansion of agricultural production and income.

The project is the second under the SMBC- JICA Sustainable Finance Framework and is also part of SAFE. The initiative contributes to SDG # 1, SDG # 2, and SDG # 8.