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]{title="Fifth Intergovernmental Negotiating Committee"} 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 13, 2025, reports indicate the UK ministers are considering eliminating their commitment to ensure 80% of bilateral development funding focuses on gender equality by 2030, a portfolio that provisionally totaled US$15.1 billion in 2024.

The commitment was made by the previous Conservative government in 2023 and reaffirmed by Labour ministers in March 2025, despite overall development funding cuts from 0.5% to 0.3% of GNI. Foreign Secretary David Lammy stated in July 2025 that the government would review past decisions. A FCDO spokesperson confirmed that a review of existing commitments was underway but reiterated that women and girls remain a fundamental priority for the department.

Critics from organizations including Bond and Plan International UK warned that removing the 80% target could compound the negative effects of recent US rollbacks on funding for gender and diversity programs. Sarah Champion, Chair of the IDC, emphasized that UK commitments are a lifeline for vulnerable women and girls, particularly when other donors are retreating.

On August 9, 2025, the UK announced an additional GBP8.5 million (US$11 million) in humanitarian funding for Gaza, urging Israel to allow more assistance into the territory and reverse its plan to expand military operations.

The funding will be delivered through the OCHA's OPT Humanitarian Fund to provide food, water, and fuel. The pledge is part of the UK's total GBP101 million (US$135 million) ODA budget for the OPT for the financial year, of which GBP60 million (US$80 million) is allocated to humanitarian support. The UK is the largest donor to the fund in 2025.

Minister for International Development Jenny Chapman stated that the humanitarian catastrophe is ongoing and called for a return to a ceasefire and the release of all hostages. Chapman noted that the new funding can only be effective if Israel allows more assistance to enter safely and securely.

On July 27, 2025, the foreign and defense ministers of Australia and the UK issued a joint statement in Darwin, Australia, reaffirming their shared commitment to the WPS agenda.

The statement, released ahead of the 25^th anniversary of the UN Security Council Resolution 1325, noted that the promise of the WPS agenda remains unfulfilled. The ministers expressed concern that women and girls continue to be disproportionately affected by conflict and that their exclusion from peace processes prevents lasting security. The nations also highlighted their concern about the use of conflict-related sexual violence as a tactic of war.

Both nations committed to the full implementation of the agenda, including to:

• Promote women’s leadership in all areas of peace and security;
• Support women-led organizations and human rights defenders in conflict settings;
• Strengthen accountability mechanisms to address sexual and gender-based violence; and
• Collaborate internationally to advocate for the WPS agenda.

On July 22, 2025, the UK government announced its 2025-2026 ODA spending figures, confirming a pledge of GBP2 billion (US$2.3 billion) to the World Bank’s IDA and outlining a strategic shift to prioritize impactful multilateral organizations.

The new approach, which follows a comprehensive review by UK Development Minister Baroness Jenny Chapman, will see the FCDO prioritize funding through organizations like the World Bank and Gavi,while pushing for their reform to increase efficiency. The government will use an accelerated payment schedule for its IDA contribution, which reduces costs for UK taxpayers while providing the same value to the Bank.

World Bank President Ajay Banga welcomed the commitment, noting the IDA fund is expected to benefit 1.9 billion people over the next three years. The UK government plans to publish indicative multi-year allocations for 2026-2029 in autumn 2025. However, this shift to multilateral spending is coming at a significant cost for bilateral programs.

On July 22, 2025, the UK's FCDO released a self-assessment which revealed that 2025-2026 health spending will be cut by nearly 46% to GBP527 million (US716 million), with significant impacts on women's health programs.

The reduction is part of a larger plan to decrease the UK's ODA budget from 0.5% of its GNI to just 0.3%. The assessment indicated spending reductions in Africa for women’s health, health systems, and emergency response.

CSOs expressed concern over the lack of detail on specific program cuts, including those for SRHR. An analysis by the Guttmacher Institute showed a 30% cut in family planning assistance could cause 1.1 million more unintended pregnancies. Further cuts are expected, potentially decreasing the aid budget by over GBP3 billion (US$4.1 billion) by 2028.

On July 22, 2025, the UK's FCDO published its Annual Report and Accounts for 2024 to 2025, which CSO Bond warns of a concerning outlook for communities most in need of assistance.

The document, which contains forward-looking budgets for the current financial year (2025-26) and reported figures for UK ODA spending for 2024-25, outlines the first reductions in a phased plan to lower the ODA budget to 0.3% of GNI by 2027. According to Bond's analysis, the FCDO’s programme ODA budget is set to fall from GBP9.3 billion (US$12.6 billion) in 2024/25 to GBP8.7 billion (US$11.8 billion) in 2025/26. It will decrease further to GBP6.8 billion (US$9.2 billion) in 2026/27 and GBP6.2 billion (US$8.4 billion) in 2027/28, a total decrease of over GBP3 billion (US$4.1 billion).

Bond's analysis highlights that the cuts will disproportionately affect the poorest countries. Bilateral assistance to Africa is being cut by 12% (GBP184 million or US$250 million) in the current financial year. Funding is also being reduced for several countries facing major humanitarian crises, including Ethiopia (25% reduction), South Sudan (23%), and Somalia (27%). Budgets for Sudan and the Occupied Palestinian Territories, both stated government priorities, are also seeing cuts of 18% and 21%, respectively. The FCDO has pointed to a GBP85 million (US$115 million) crisis reserve, but Bond questions why previous spending levels were not maintained given the scale of the crises.

Thematic funding is also facing significant reductions. Funding for health ill be cut by 46% (GBP448 million or US$603 million), and the budget for Education, Gender & Equality will be reduced by 42% (GBP206 million or US$278 million). Bond's equality impact assessment found that 11 of the 13 programs proposed for closure were focused on gender equality or disability inclusion, and that the cuts will likely have negative impact on children.

On July 13, 2025, campaigners and ODA experts urged the Labour government to fulfil its pledge to restore the UK’s global leadership in international development in a Guardian editorial, which emphasized the urgency of reversing cuts and addressing worsening global inequalities.

The editorial notes that, in the first half of 2025, key donors, including the UK, have continued to reduce ODA budgets, while many LICs now spend more on debt repayment than on healthcare or education. Campaigners argue that Labour should prioritize debt relief, reform international tax systems, and support grassroots-led solutions.

Romilly Greenhill, CEO of Bond, stressed that the global economic system is broken and requires immediate reform. Diana Francis of Peace Direct underlined the growing interconnection between climate breakdown, conflict, and underfunded humanitarian responses, adding that solidarity and cooperation are more important than ever.

The editorial calls on Labour to act decisively - or risk falling short of its own promises.

On July 8, 2025, according to statements made in Parliament, the UK FCDO will reduce its staff by 15–25% by 2029, leading Bond to responding with warnings that the cuts risk undermining the UK’s global development role.

Bond’s Director of Policy and Advocacy Gideon Rabinowitzs noted that development staff are likely to bear the brunt of the reductions, exacerbating already strained capacity following previous ODA cuts and the merger of DFID and FCO. He warned that further reductions will diminish the department’s development expertise and harm the UK’s credibility as a global partner.

Bond emphasized that restoring the UK’s leadership in international development requires investment in staff and skills. The proposed cuts, it argued, move in the opposite direction and threaten the government’s ability to deliver effective ODA and uphold its international commitments.