Investing in sustainable development : progress report 2018-2020.
Date: 2022-05-10
Institutions: Directorate-General for International Partnerships
Subjects: EU strategy, community resilience, coronavirus disease, crisis management, development policy, digitisation, financial policy, fiscal policy, governance, green economy, innovation, international trade, investment, private sector, report, sustainable development

INVESTING IN

SUSTAINABLE DEVELOPMENT

PROGRESS REPORT 2018-2020

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Foreword 

The COVID-19 pandemic has had a dramatic impact on all countries, reversing years of 
progress  towards  the  Sustainable  Development  Goals  (SDGs).  Millions  of  people  have 
been pushed into extreme poverty and inequalities have further increased. But, developing 
countries are suffering disproportionately from the crisis. The global economic fallout has 
exacerbated financing needs and has decreased the level of resources available. Foreign 
direct investment, tax revenues, export proceeds and remittances have all dropped, in some 
cases substantially. Developing countries have not been able to afford the stimulus packages 
put into place by advanced economies. Our partner countries are at a critical juncture, but 
there are also signs of recovery and together we should seize the opportunity to accelerate 
the huge growth potential underpinned by the twin – green and digital – transitions.

Jutta Urpilainen

Commissioner  
for International 
Partnerships

Massive  investments  are  needed  to  close  the  financing  gap  that  OECD  estimates  at 
USD 4.2 trillion a year for developing countries. The current geopolitical crisis, notably the war 
in Ukraine and its economic shock to the world economy, represent an additional challenge. 
All funding sources (public/private, domestic/international) combined with effective policy 
reforms need to be efficiently deployed to help meet the SDGs and the Paris Agreement’s 
objectives.

With the Union’s new Global Gateway strategy, the EU has set up a plan for investment in 
sustainable infrastructure development to ensure a green, digital, just and resilient recovery 
from the pandemic. It is a positive offer to our partners to support projects that are sustainable 
and of high quality, and implemented with high levels of transparency and standards in order 
to deliver lasting social and economic benefits for local communities. Global Gateway aims 
at mobilising important investments to mobilise private sector finance and expertise and 
supports access to sustainable finance. 

In this respect and for the first time, the present report discusses the importance of sustainable 
finance in supporting the achievement of the SDGs. It is indeed crucial, given the scale of the 
financing gap, to mobilise financing from all sources, including international private capital, 
notably banks, institutional investors and asset managers. I will soon have the pleasure 
of launching the work of a high-level expert group to help us further scale up sustainable 
finance in our partner countries. On that basis, the European Commission will present an 
EU strategy on scaling up sustainable finance in low- and middle-income countries in 2023. 

The report also takes stock of the EU’s strong efforts and progress on the Addis Agenda 
commitments. Together  with  the  Member  States,  the  EU  has  significantly  increased  its 
contribution to official development assistance (ODA), crucial at a time when so many people 
in our partner countries face significant health, economic and social challenges linked to the 
COVID-19 crisis. 

In response to COVID-19 crisis, in a Team Europe approach, the EU, its Member States and 
European development financial institutions have mobilised, as of April 2021, EUR 46 billion 
supporting 130 partner countries in responding to the crisis. 

I am also proud that the EU and its Member States have shown strong performance on 
domestic public resources and domestic resource mobilisation. For example, under the Addis 
Tax Initiative they surpassed their commitment of collectively doubling technical cooperation 
on domestic resource mobilisation well in advance of the target date. Furthermore, the Union’s 
and its Member States’ assistance to private sector development has grown by two thirds 
over the last decade to reach EUR 28 billion in 2019. Financial instruments have catalysed 
a significant amount of much needed private investment to partner countries; for instance 
with EUR 1.55 billion, the recently created European Fund for Sustainable Development is 
expected to leverage over EUR 17.5 billion in investments. 

3

However, we also need to acknowledge the areas for improvement. There is a need to focus 
more of our efforts on least developed countries. I also believe we need to better target the 
more vulnerable elements of society, as we will not have a fair and sustainable recovery 
unless we invest in people and address inequalities. Fair and sustainable recovery for all 
also means that women and young people must be actively empowered. We are already 
taking active steps in this regard. 

The EU is committed to delivering on the Sustainable Development Goals and the Paris 
Agreement. With the EUR  79  billion new Neighbourhood Development and International 
Cooperation Instrument (NDICI) – Global Europe for the period 2021-2027 - representing a 
12% increase compared to the previous long-term budget - we are well equipped to contribute 
to eradicating poverty and fighting inequalities, promoting sustainable development, prosperity, 
peace and stability. We will seek to achieve transformational impact through Team Europe 
Initiatives together with our Member States and European development financial institutions. 

The EU will continue providing strong support to developing countries in implementing the 
Addis Ababa Action Agenda and will be taking further transformational actions to leverage 
finance from all sources to the benefit of our partner countries and their populations, leaving 
no one behind.

Jutta Urpilainen 
Commissioner for International Partnerships

4

Table of Contents

Foreword  

In a Nutshell 

Introduction 

Chapter 1 Sustainable Finance 

Supporting partner countries’ efforts to scale up sustainable finance 

Promoting sustainable finance policy in global fora 

Domestic experience in sustainable finance inside the European Union 

Building a sustainable finance ecosystem 

Green, social and sustainable bond issuances  

Chapter 2 Domestic Public Resources  

Collect more, spend better: Tax policy and administration, public financial     

   management and governance 

Objectives 

Implementation 

International cooperation on tax matters and against illicit financial flows  

Objectives 

Implementation 

Chapter 3 Domestic and International Private Business and Finance  

Private sector development 

Objectives    

Implementation 

Sustainable business practices 

Objectives 

Implementation 

Remittances 

Objectives 

Implementation 

Chapter 4 International Development Cooperation 

Official development assistance 

Objectives 

Implementation 

3

8

11

14

16

18

18

19

21

22

25

25

25

28

28

28

31

34

34

34

37

37

37

39

39

39

42

43

43

43

5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Development effectiveness, joint programming and joint implementation 

Objectives 

Implementation 

ODA as catalyst: Innovative sources of finance and financial instruments 

Objectives 

Implementation 

Climate finance and the environment 

Climate finance 

Sustainable energy  

Natural resources, biodiversity and ecosystems: conservation and sustainable management  

Strengthening resilience 

Objectives 

Implementation 

Human development 

Objectives 

Implementation 

Chapter 5 International Trade as an Engine for Development  

Objectives 

Implementation 

Widening market access for developing countries 

Aid for Trade 

Chapter 6 Debt and Debt Sustainability 

Objectives 

Implementation 

Support from the EU and its Member States in international fora 

Actions by the EU and its Member States to further debt relief and debt sustainability 

Chapter 7 Addressing Systemic Issues  

International governance 

Objectives    

Implementation 

Policy coherence for sustainable development 

Objectives 

Implementation 

46

46

46

50

50

50

52

53

56

58

61

61

62

63

64

64

66

68

68

69

71

74

76

76

76

77

80

81

81

81

84

84

84

6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 8 Science, Technology, Innovation and Digitalisation  

Objectives 

Implementation 

Science, technology and innovation  

Digitalisation 

Chapter 9 Data Monitoring and Follow-up  

The contribution of the EU and its Member States to the global 
SDG indicator framework  

Providing relevant financing-for-development data in a user-friendly manner 

Enhancing statistical capacity in partner countries 

Annex 1 – Summary of Progress by EU and Member States  

     on Financing for Development Commitments, 2018-2020 

Annex 2 – Statistics on Sustainable Finance 

Annex 3 – Statistics on Trends in Official Development Assistance 

Annex 4 – Regional ODA and Financing for Sustainable Development 

86

87

89

89

91

94

94

95

96

99

105

112

132

Annex 5 – Methodology for Monitoring Progress towards the Addis Agenda 

146

Annex 6 – Bibliography  

Annex 7 – Abbreviations and Acronyms  

148

153

7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In a Nutshell

The UN Agenda 2030 for Sustainable Development, with its 17 Sustainable Development Goals 
(SDGs) and the political commitment to leave no one behind, offers a common and universal 
development agenda for the world. Agreed upon in the same year, the Paris Agreement on 
climate change sets targets to reduce global warming and build climate resilience.

With the SDG funding gap for developing countries estimated at USD 4.2 trillion per year (OECD 
2020a), an unprecedented scale of investment and capacity is required for the global green, 
inclusive and resilient growth that will enable the world to achieve the SDGs for all. 

The Addis Ababa Action Agenda highlights ways of financing the required sustainable 
growth and transformative processes and stresses the importance of engaging with all actors, 
to support the sustainable growth of developing countries and emerging economies. Beyond 
official development assistance, there is a need to tap into all financing sources (public/private, 
domestic/international). This is all the more true seven years on, particularly with the dramatic 
socio-economic impact of the COVID-19 pandemic, since foreign direct investment, tax 
revenues, exports, and remittances have all dropped with the pandemic, and many developing 
countries are struggling with unsustainable debt levels. The current geopolitical crisis, including 
the Russian war of aggression against Ukraine, is expected to create another huge economic 
shock to the world economy. 

To achieve the SDGs and the Paris Agreement objectives, the EU fosters its international 
partnerships,  in  support  of  developing  countries  and  emerging  economies,  notably  in 
making necessary investments. This report on “Investing in Sustainable Development” 
documents how the EU, its Member States and European development financial institutions 
are implementing the Addis Ababa Action Agenda to support partner countries in financing their 
sustainable development priorities. It addresses cooperation within each of the fields defined 
by the Addis Ababa Action Agenda. The report also includes a thematic chapter on sustainable 
finance, recognising that innovative financing mechanisms are crucial to leverage sustainable 
private financing through blending operations, de-risking tools, and attention to policies and 
regulatory frameworks.

The EU and its Member States have been at the forefront in implementing the Addis Ababa 
Action Agenda to support partner countries in financing the SDGs, notably in terms of supporting 
domestic resource mobilisation and supporting initiatives ensuring debt sustainability. Importantly, 
the EU launched its new Global Gateway strategy in December 2021 as a tool to deliver on 
the twin transitions externally through sustainable infrastructure investments. Underpinned 
by a values-driven approach, Global Gateway is a plan for major investment in infrastructure 
development around the world to strengthen digital, transport and energy networks through 
sustainable and high-quality projects. . 

…

The EU has shown strong leadership in promoting sustainable finance within the EU as well 
as globally and in partner countries.

Accelerating private financial flows to partner countries will be critical to collectively deliver 
our global sustainability commitments. The European Commission will  be developing a 
comprehensive strategy to scale up sustainable finance in low- and middle-income 
countries with the support of a tailored high-level expert group (HLEG). The HLEG will provide 
recommendations to the Commission to accelerate private financial flows for the implementation 
of the external dimension of the Green Deal and a green, just and resilient recovery. The EU 
will support efforts to scale up green bonds in our partner countries, as they are a key tool 
to mobilise institutional investors towards sustainable investments. The EU and its Member 
States are highly engaged in sharing the EU experience and in helping partner countries to 
scale up sustainable finance, e.g. by providing technical assistance to build the foundations for 

8

sustainable finance (taxonomy, benchmarks, standards, sustainability-related disclosures) and 
de-risking private investment in partner countries. Working on taxonomies, standards, labels and 
disclosures is essential to scale up sustainable finance as it will enhance market transparency 
and help investors identify investment opportunities that truly contribute to sustainable objectives 
across the globe. Domestically, the EU has taken major steps to build a sustainable finance 
ecosystem, notably with the EU taxonomy establishing a list of environmentally sustainable 
economic activities and the introduction of sustainability-related disclosure requirements.

…

In terms of domestic public resources, the EU and its Member States have substantially 
increased their support for domestic revenue mobilisation and public financial management, 
through global, regional, and country-level initiatives, that have benefitted over 90 partner 
countries. Furthermore, the EU has shown perseverance in its important efforts to reduce illicit 
financial flows and contribute to fighting tax avoidance and tax evasion worldwide. 

As regards domestic and international private business and finance, the EU and its Member 
States made considerable efforts in facilitating private sector development in partner countries. 
EU assistance to private sector development has grown by 65% over the last decade. 

Many programmes provide direct credit, guarantees and technical support to support the access 
to finance of micro-, small- and medium-sized enterprises (MSMEs), notably in rural areas and 
for women entrepreneurs. Yet, amounts must still increase in order to meet the needs and 
commitments in this area.

Furthermore, the EU and its Member States have taken important steps to support remittances 
as an important source of sustainable investments. Some progress has been made in reducing 
the costs associated with the transfer of remittances from the EU to developing countries, but 
current costs remain well above the 2030 target of 3%. 

In the realm of international development cooperation, the EU and its Member States are 
by far the largest provider of ODA worldwide in both relative and absolute terms. The EU and 
its Member States in a Team Europe approach have taken important steps to address the 
COVID-19 pandemic and have mobilised a EUR 46 billion package to support partner countries 
facing the socio-economic consequences of the pandemic. Notwithstanding those efforts, and 
even though some EU Member States are meeting or even exceeding the target of providing 0.7 
% ODA/GNI, more will be needed to collectively achieve the target of 0.7% ODA/GNI by 2030. 

Likewise, the EU and its Member States allocate more ODA to Least Developed Countries 
(LDCs) than other individual donors. Nevertheless, the target of providing 0.15% of ODA/GNI 
to LDCs has not been achieved. Hence, the 2030 target of providing 0.20% of (collective) ODA/
GNI to the LDCs will need further attention in the years to come. 

Because public resources are not enough to reach the SDGs, the EU and its Member States use 
ODA to leverage private capital, notably through blending or guarantees. Innovative financing 
mechanisms mobilised close to EUR 10 billion of additional resources in 2020, almost nine 
times the amount generated in 2019 and close to 15% of EU ODA in 2020. 

The EU and its Member States have shown strong leadership in promoting a global green, 
inclusive and resilient recovery. The 2020 target of spending at least 20% of the EU budget on 
climate finance has been achieved and exceeded. The EU is now committed to reaching a 
target of 30% for climate finance, with an additional EUR 4 billion for climate finance for partner 
countries until 2027. Moreover, the EU has substantially increased its support for biodiversity 
as well as disaster risk reduction. 

Also worth mentioning is the EU’s strong support for Integrated National Financing Frameworks 
that enable countries to devise a financial strategy to mobilise and align public, private, domestic 
and international financing sources. 

Within the area of international trade as an engine for development, the EU has fully 
implemented the Bali package, an important trade agreement designed to lower global trade 
barriers. Moreover, the EU forms a trade bloc that offers an extensive network of free-trade 
agreements and arrangements, with unilateral preferences offered to the developing countries 

9

most in need and import duties removed for two thirds of tariff lines. The EU has thus become the 
main export market for LDCs, but progress towards doubling the share of LDCs in EU imports 
has been insufficient, as the latter remained at about 2% from 2010 to 2020, thus missing the 
2020 target. While the EU has shown consistent efforts to remove tariff and non-tariff barriers 
for LDCs, their capacity to export needs to be further strengthened. 

The  COVID-19  pandemic  highlighted  the  need  for  enhanced  progress  in  ensuring  debt 
sustainability – a goal that will require efforts from the entire global community. The EU and 
its Member States have been leading efforts to manage debt and debt sustainability for 
vulnerable low-income countries and provided substantial liquidity support to them through the 
G20-Paris Club Debt Service Suspension Initiative, helping them manage the socio-economic 
impact of the COVID-19 pandemic. They provided financial and technical support to World 
Bank and IMF facilities set up to address debt crises, notably the Catastrophe Containment 
and Relief Trust. The EU recognises the importance of responsible lending and borrowing 
practices and has supported efforts within existing initiatives such as those promoted by the 
G20, the Paris Club, the International Financial Institutions, and the UN.

The pandemic has again illustrated the value and strength of multilateralism and the need 
for international cooperation between countries in addressing systemic issues. The EU 
and its Member States have been the largest contributor to the multilateral system and the 
largest provider of core contributions to multilateral organisations for the entire period under 
review. The recent Joint Communication on strengthening the EU’s contribution to rules-
based multilateralism is evidence of the importance the EU places on close partnerships with 
multilateral organisations. Furthermore, the EU and its Member States have taken measures to 
ensure policy coherence for sustainable development in their national policies as well as at the 
EU level. They have supported partner countries in their own efforts to put in place institutional 
mechanisms to enhance policy coherence for sustainable development.

The EU is the world’s second largest provider of ODA for science, technology and innovation 
to developing countries, reaching almost EUR 1 billion in 2019. As regards scholarships for 
students from developing countries, the EU and Member States increased their funding by 45% 
between 2014 and 2019; they now account for almost 90% of donors’ total ODA spending on 
scholarships. Regarding digitalisation, the EU’s funding to bridge the ‘digital divide’ remained 
quite low. However, a positive trend is that EU commitments for digital transformation to LDCs 
grew extensively, contributing to the 2020 commitment of providing access to the Internet in 
LDCs. Tackling the digital divide is crucial, and global digital partnerships are one of five priority 
areas for the EU’s external cooperation. The EU launched several new initiatives in 2020 to 
promote digitalisation in partner countries. 

Finally, there is broad international consensus on the importance of data monitoring and 
follow-up on SDG indicators, so that the SDGs and their targets can become a management 
tool to help countries in designing better policies and actions reinforced by adequate resources 
and effective implementation strategies. The EU and its Member States are supporting and 
pushing for improved follow-up and monitoring of the SDG commitments in multiple ways. 
Particularly noteworthy is the EU Aid Explorer which provides additional transparency on EU 
and Member States’ spending. The EU also played a key role in developing the Total Official 
Support for Sustainable Development (TOSSD) statistical tool. The EU also supports partner 
countries in their efforts to produce national data and statistics for effective SDG monitoring 
at the country level.

…

In conclusion, this report shows the breadth and depth of the support provided by the EU and 
its Member States to partner countries around the world. It positions the EU and its Member 
States as the world’s largest ODA provider by far, while also acknowledging that ODA alone 
will not be sufficient to close the SDG funding gap. For that reason, all sources of financing 
continue to be actively explored, including innovative mechanisms of sustainable finance. 

The report amply demonstrates the need to face global challenges through international 
partnerships that promote sustainable approaches, allowing the world to achieve the SDGs 
and leave no one behind. 

…

10

Introduction

Financing the Sustainable Development Goals (SDGs) requires massive public and private 
investment to make them a reality for all people, everywhere. The COVID-19 pandemic 
has added to the urgency of tackling development challenges. This report on investing in 
sustainable development comes at a critical juncture, as resources are dwindling while 
needs are rising. 

The decline in financial resources for sustainable development is largely ascribable 
to COVID-19. GDP in developing countries in 2022 is projected to be about 7.5% lower, 
on average, than what was expected before the health crisis. Estimates provided by the 
International Monetary Fund in April 2021 (IMF, 2021) show that fiscal balances in low-
income developing countries deteriorated by 1.6% of GDP between 2019 and 2020, growing 
from -3.9% to -5.6%. Resources generated by external flows also declined: foreign direct 
investment in developing countries fell by EUR 450 billion (-40%), developing countries’ 
merchandise exports to the European Union (EU) by almost EUR 100 billion, and remittances 
by close to EUR 10 billion (UN, 2021).  The current geopolitical crisis, including the war in 
Ukraine, is expected to create another huge economic shock to the world economy.

At  the  same  time,  COVID-19  has  increased  developing  countries’  needs.  Progress 
towards  the  SDGs  slowed  with  the  onset  of  COVID-19,  with  poverty  increasing  for  the 
first time in 20 years1. But even before COVID-19, progress towards the SDGs, while on 
an upward trend for all income groups, was uneven. Once the pandemic set in, progress 
worsened for all developing countries, with the 2021 SDG Index dropping by 1.5 percentage 
points for both low-income and lower middle-income countries, and by 2.4 for upper-middle-
income countries (Sachs, Kroll et al. 2021). 

The Organisation for Economic Co-operation and Development (OECD, 2020a) estimates 
that  COVID-19  has  caused  an  overall  decline  in  resources  of  USD 700 billion,  and  an 
increase in needs of USD 1 trillion (the scissor effect). As a consequence, the SDG funding 
gap in developing countries is projected to grow from USD 2.5 trillion before COVID to 
USD 4.2 trillion a year for the foreseeable future – a 70% increase. 

A massive step up in domestic resource mobilisation, greater efficiency in public spending 
and better SDG alignment are fundamental to finance the SDGs, but even coupled with 
the billions  in  official  flows  to  developing  countries,  they  will  not  be  enough  to  fill  the 
widening funding gap. There is an urgent need to tap into more private financial assets, 
growing  shares  of  which  have  been  invested  in  sustainable  activities  in  recent  years. 
One  of  the  main  challenges  is  that,  while  84%  of  the  world’s  population  (OECD,  2020) 
and 99% of the 700 million extremely poor2 live in developing countries, less than 20% of 
the USD 379 trillion in global financial assets are invested there – and most of that in the 
upper-middle-income group. 

…

This report documents how the EU, its Member States and European development financial 
institutions  have  been  progressing  on  their  commitments  with  regard  to  financing  for 
sustainable development and how they have been implementing the Addis Ababa Action 
Agenda3 to support partner countries in financing their sustainable development priorities. 
This report covers the period 2018-20204. Further information on European commitments can 

1. According to UNDP. See, for example, SDG Integration.

2. People living on less than USD 1.90 a day at 2011 international prices in low- and middle-income countries 
in 2017 (latest year for which comprehensive data is available). Source: World Bank – World Development Indicators. 

3. United Nations (2015), Addis Ababa Action Agenda of the Third International Conference on Financing 

for Development, A/RES /69/313.

4. The 2018 Investing in Sustainable Development Report covered the years 2015-2017.

11

be found in the 2017 joint statement that provides the framework for a common approach to 
development policy for EU institutions and the Member States5.

The Addis Agenda  supports  the  implementation  of  the  2030 Agenda  for  Sustainable 
Development, and the Paris agreement on climate change, both approved by the UN in 
20156. The 2030 Agenda includes the 17 SDGs and their 169 targets. 

The Addis Agenda highlights the need to unlock the full potential of all financial flows – 
private and public, domestic and international – and emphasises the critical importance of 
good policies and non-financial means of implementation. Serving as a guide for action by 
governments, international organisations, businesses and civil society, it emphasises the 
need for individual countries to take domestic actions, while also offering a framework for 
policies of cooperation between developed countries and their developing partners. 

In this report, progress is examined through a Team Europe lens, aggregating, wherever 
possible, indicators for the EU and its Member States in a single measure7. Team Europe 
refers to the EU, its Member States – including the European Investment Bank (EIB), the 
European Bank for Reconstruction and Development (EBRD) and national development 
banks – as well as implementing agencies. The EIB and EBRD were consulted for the first 
time to provide their inputs and contribution to this report. 

The Team Europe approach started as a successful collective response to COVID-19 that 
proved the value of coordinated action by the EU and Member States, particularly with respect 
to achieving the SDGs. Building on this strong collaboration, the EU and its Member States, 
are now committed to making Team Europe a more stable feature of our external actions in 
international partnerships and cooperation. 

The report is not meant to measure overall progress towards the SDGs8, but it complements 
several other reporting exercises carried out by the Commission. Since 2016, Eurostat (the 
statistical office of the European Union) has published reports on progress in sustainable 
development covering both internal and external actions of the EU (Eurostat, 2021). In 
addition, a collective Joint Synthesis Report (European Union, 2019) on contributions to the 
external implementation of the SDGs was published in May 2019; the next one is due in 2023. 

…

This report analyses for the first time the crucial role that sustainable finance can play in 
closing the estimated financing gap to meet the SDGs and assesses the key role that the 
EU and its Member States are playing in the area (Chapter 1).

Chapters 2 through 9 focus on the levels, quality, catalytic effects and impact of spending 
on the SDGs in developing countries, based on the commitments made by the EU and its 
Member States. They analyse progress on domestic public resources (Chapter 2); private 
business and finance (Chapter 3); international development co-operation (Chapter 4); trade 
and development (Chapter 5); debt and debt sustainability (Chapter 6); addressing systemic 
issues (Chapter 7); science technology, innovation and digitalisation (Chapter 8); and data 
monitoring and follow-up (Chapter 9). Each of chapters 2-8 reviews efforts and progress 
towards one of the Addis Agenda action areas, rating performance in each, except where 
progress cannot be established because of data limitations, as detailed in Annex  5, which 
describes the methodology used in  assessing  performance.  Europe’s overall effort and 
progress on the Addis Agenda are summarised in Annex 1. 

The report is based on a review of institutional reports and websites, donor policies and 

5. Joint Statement by the Council and the Representatives of the Governments of the Member States 
meeting within the Council, the European Parliament and the European Commission (2017), The New European 
Consensus on Development, 2017/C 210/01. 

6. United Nations (2015), Transforming our world: the 2030 Agenda for Sustainable Development, A/

RES/70/1; United Nations (2015), Paris Climate Agreement. 

7. Given the United Kingdom’s withdrawal from the European Union on 1 February 2020, statistics included in 
this report, unless stated otherwise, exclude the United Kingdom even for years when it was still a Member State.

8. Boxes referring to the most relevant SDG indicators and targets related to the commitments we are 

monitoring are included in the different chapters for illustration purposes. 

12

strategies,  relevant  legislation,  and  studies  prepared  by  academics  and  civil  society 
organisations. All are cited in short form in the text or footnotes and listed in the bibliography 
(Annex 6). For financial resources, the analysis focused chiefly on the statistics on finance 
for development provided by the Organisation for Economic Co-operation and Development. 
Details on sources for each indicator are available in each chapter and section. In addition, 
a survey questionnaire comprising 110 questions was completed in May-June 2021 by all 
Member States, the European Commission, the EIB and the EBRD. Qualitative results from 
the questionnaire are included in each chapter wherever relevant, while quantitative results 
are briefly summarised in the main report. Statistical data on sustainable finance and ODA 
are  provided  in  Annexes 2  and  3 ,  respectively.  Infographics  on  EU  regional  ODA  and 
progress on financing for sustainable development can be found in Annex 4. Tech4Dev BV, 
in cooperation with EPRD Ltd, has been assigned as a contractor to produce and provide 
inputs and graphical design to the report. 

13

Investing in Sustainable Development - Progress report 2018-2020

SUSTAINABLE FINANCE

E
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M

I

Low- and middle-income countries face massive investment needs to finance their 
sustainable development. Accelerating private financial flows towards partner 
countries for sustainable investments will be critical to deliver on global sustainability 
commitments.

According to the OECD, the annual SDG funding gap for developing countries is 
estimated at USD 4.2 trillion. However, a change of just 1.1% in the allocation of 
global financial assets (over USD 379 trillion) could fill the yawning SDG funding gap 
in developing countries. 

Developing credible and coherent sustainable finance frameworks is essential to 
build a conducive environment to scale up sustainable finance. This entails providing 
transparent and reliable information for investors who seek truly sustainable 
investment opportunities. In addition, it is fundamental to provide public support 
(guarantees and blending instruments) to crowd in private investors at scale for 
sustainable investments in low- and middle- income countries. 

Meanwhile, the EU and its Member 
States are highly engaged in sharing 
the EU experience and helping partner 
countries to scale up sustainable 
finance by: 
- providing capacity-building to support 
the development of credible 
sustainable finance frameworks, 
sharing our EU experience (taxonomy, 
benchmarks, standards, sustainability-
related disclosures),
- providing de-risking mechanisms to 
crowd in private investors in 
sustainable investment in developing 
markets by covering part of the risks 
that investors are not ready to take. 

Domestically, the EU has taken major 
steps to build a sustainable finance 
ecosystem, notably with the EU 
taxonomy establishing a list of 
environmentally sustainable economic 
activities and the introduction of 
sustainability-related disclosure 
requirements. 

The European Commission will 
develop a comprehensive strategy by 
2023 to help scale up sustainable 
finance in our partner countries with 
the support of a dedicated high-level 
expert group. 

The EU will support efforts to scale up 
green bonds in our partner countries, 
as they are a key tool to mobilise
institutional investors towards 
sustainable investments. 

The EU has also set up with several 
partner countries the International 
Platform on Sustainable Finance as a 
multilateral forum for dialogue among 
sustainable finance policy makers and 
regulators to exchange best practices 
and promote the development of 
coherent frameworks. 

14

Chapter 1  

Sustainable Finance

Low- and middle-income countries face massive investment needs to finance their sustainable 
development. The OECD’s Global Outlook on Financing for Sustainable Development 2021 
(OECD 2020a) estimates that the USD 2.5 trillion SDG annual funding gap in developing countries 
before the pandemic could rise by 70% to USD 4.2 trillion in the near future. Financial markets 
are global and have the potential to bridge this gap by linking green investment demand to global 
sources of funding. Indeed, there is more than enough capital in the world – over USD 379 trillion 
of global financial assets are held by banks, institutional investors and asset managers. 

It is widely acknowledged that financial markets have a critical role to play in supporting the 
implementation of the SDGs9. Redirecting funds into policy-targeted long-term investments is 
essential to support the transition to climate-neutral, climate-resilient, resource-efficient and 
fair economies and finance countries’ sustainable development priorities. However, capital is 
not yet flowing towards sustainable projects in developing countries at the scale and speed 
required. The challenge is that only 20% of global financial assets are held in developing 
countries, where 84% of the world population and the vast majority of the poor live. The good 
news is that even a change of just 1.1% in the allocation of the total financial assets held by 
banks, institutional investors or asset managers could provide sufficient funds to fill the yawning 
SDG funding gap (OECD 2020a).

Developing credible and coherent sustainable finance frameworks (including sustainability-related 
disclosures, standards and labels, taxonomy) is essential to build a conducive environment 
to scale up sustainable finance. This entails providing transparent and reliable information for 
investors who seek truly sustainable investment opportunities. In addition, it is fundamental to 
provide public support (guarantees and blending instruments) to crowd in private investors at 
scale for sustainable investment in low- and middle- income countries including providing risk-
sharing mechanisms to cover part of the risks that investors are not ready to take. 

This chapter focuses on the EU and its Member States efforts to promote sustainable finance 
globally, inspired by its domestic experience. 

9. EU: Communication from the Commission to the European Parliament, the European Council, the 
Council, the European Central Bank, the European Economic and Social Committee and the Committee of the 
Regions, Action Plan: Financing Sustainable Growth, COM/2018/097 final; United Nations, Inter-agency Task 
Force on Financing for Development (2021). Financing for Sustainable Development Report 2021; Financing 
for Development in the Era of COVID-19 and Beyond: Menu of Options for the consideration of Heads of State 
and Government; UN Global Compact (2019); OECD (2020). Global Outlook on Financing for Sustainable 
Development 2021; G20 (2021). Innovative Instruments for an Efficient and Effective Financing for Sustainable 
Development; IMF (2020). Greening the Recovery. WB (IFC) (2021) Accelerating Sustainable Finance Together: 
Global Progress Report on the Sustainable Banking and Finance Network. 

Redirecting funds into 

policy-targeted long-

term investments is 

essential to support 

the transition to 

climate-neutral, 

climate-resilient, 

resource-efficient,  

fair economies, and 

countries’ sustainable 

development priorities.

Supporting partner countries’ efforts to scale up  
sustainable finance
In July 2021, the Commission published its new Strategy for Financing the Transition to 
a Sustainable Economy10. The new strategy builds on the 2018 Action Plan on Financing 
Sustainable Growth11 and lays down measures to support the financing of the transition to 
a sustainable economy by proposing actions in four areas: transition finance, inclusiveness, 
resilience and contribution to sustainability of the financial sector, and global scope and ambition. 
The new strategy underlines the need the need to help low- and middle-income countries 
expand their access to sustainable finance and work with international partners in all fora.

Low- and middle-income countries face massive investment needs to finance their sustainable 
development. Accelerating private financial flows towards partner countries will be critical to 
collectively deliver our global sustainability commitments. 

However, scaling up sustainable finance in these countries remains a challenge and will require 
dedicated support. This is the reason why the European Commission announced in its Strategy 
for Financing the Transition to a Sustainable Economy that it will develop a comprehensive 
strategy to scale up sustainable finance in low- and middle-income countries by 2023.

To inform the Commission on the most pressing issues to address, an expert group composed 
of senior, highly qualified experts in the area of sustainable finance is being set up. It will be 
mandated to provide state-of-the-art recommendations to the Commission about transformative 
and innovative actions the EU can take to scale up sustainable finance in low- and middle-
income countries. It will notably be focussing on the following issues: 

•  Supporting sustainability-related financial instruments and products to mobilise private 

capital for a sustainable transition in low- and middle-income countries 

•  Enhancing the development of strong pipelines of bankable and sustainable or SDG-
aligned projects and facilitating global and local investments in sustainable projects 

•  Building  coherent  frameworks  and  ecosystems  conducive  to  accelerating  private 
finance  flows  for  sustainable  development,  building  on  the  EU’s  sustainable 
finance experience.

The EU is committed to  supporting  efforts to scale up  sustainability-related  financial 
instruments in our partner countries, including green bonds because they are a key tool 
to mobilise institutional investors towards sustainable investments. 

With the increasing interest of institutional investors and asset managers in new trends such as 
impact  investing,  the  sustainable  finance  market  is  witnessing  the  development  of 
sustainability-related instruments and products, such as thematic bonds or impact investment 
vehicles.  They  can  help  mobilise  private  capital  towards  sustainable  investments. 
However,  while  the  growth  of  these  instruments  and  products  is  exponential  they  still 
represent only a fraction, and their full potential is still far from being reached, especially in 
low- and middle-income countries.

The EU will promote the development of sustainability-related financial instruments, including 
green bonds, in our partner countries notably through its new instrument for external action, the 
NDICI – Global Europe and its European Fund for Sustainable Development Plus (‘EFSD+’). 
Sustainable finance has been recognised as a key priority for the EFSD+, notably with the 
creation of a “sustainable finance investment window” designed to increase partner countries’ 
access to international and domestic private capital for sustainable investments and enabling 
them to scale up sustainable finance in an inclusive and innovative way to deliver on the SDGs 
and Paris Agreement objectives. To support the development of green bond markets, capacity 

10. Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions Strategy for Financing the Transition to a Sustainable 
Economy, COM/2021/390 final.

11. Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee and the Committee of the Regions Action Plan: Financing 
Sustainable Growth, COM(2018) 97 final.

The European 

Commission  

will develop a 

comprehensive 

strategy to scale 

up sustainable 

finance in low- and 

middle-income 

countries by 2023.

16

The EU and its 

Member States are 

highly engaged 

in sharing the EU 

experience and 

helping partner 

countries to scale up 

sustainable finance.

building and providing technical assistance to develop credible green bond frameworks, help 
identify a pipeline of green bankable projects and help carry out issuances will be crucial as will 
be the use of de-risking mechanisms to provide confidence and attract institutional investors 
to frontier markets where they would not invest otherwise. 

Meanwhile, the EU and its Member States are highly engaged in sharing the EU experience 
and helping partner countries to scale up sustainable finance by: 

•  providing  capacity-building  to  support  the  development  of  credible  sustainable 
finance frameworks, sharing our EU experience (taxonomy, benchmarks, standards, 
sustainability-related disclosures),

•  providing de-risking mechanisms to crowd in private investors in sustainable investment 

in developing and emerging markets.

Box 1.1 - Specific actions by the EU, its Member States and European 
Development Financial institutions

Thanks to the EU’s technical assistance and information exchange instrument, TAIEX, and with 
the help of experts from Luxemburg, Greece, Italy and the European Commission, Vietnam 
has benefitted from support to develop a regulatory framework for sustainable finance, with 
a particular focus on green bonds.

The Swedish International Development Cooperation Agency and Luxembourg’s Ministry 
of Finance developed a Green Bond Technical Assistance Programme in partnership with the 
Swiss State Secretariat for Economic Affairs and the International Finance Corporation, which 
manages and administers the programme, to provide technical assistance to create a market 
for green bonds in developing countries.

In the realm of technical assistance, GIZ, the German development cooperation agency, has 
been providing capacity-building services to countries and entities worldwide. Its activities 
include preparing banks for corporate green bond issuances, helping governments develop an 
enabling market infrastructure and adequate policy framework. For instance, GIZ is assisting 
Brazil’s Ministry of the Economy and Central Bank in developing framework conditions to 
improve greening of the country’s financial sector. With the Peruvian government, GIZ will 
develop an advisory service and a mechanism to increase private investment in biodiversity-
friendly businesses in Peru. 

With regard to green, social and sustainable bonds, Luxembourg is supporting the Luxembourg 
Microfinance and Development Fund, a regulated investment fund that invests in emerging 
microfinance institutions, and SDG500, an impact investment platform whose objective is to 
channel USD 500 million into six impact funds targeting businesses in agriculture, finance, 
energy, education and healthcare in partner countries around the world. 

Germany and the EU are also supporting the Latin America Green Bond (LAGREEN) Fund, 
which aims to support finance climate- and resource-friendly investments and to mobilise local 
and international private capital towards the issuance of more green bonds in Latin America. 

France’s Proparco (the affiliate of the French development agency that promotes private 
investment) and Italy’s CDP are investing in the HSBC Real Economy Green Investment 
Opportunity Global Emerging Markets Fund (‘REGIO’). REGIO supports the ecological transition 
by financing green bonds issued by private companies in emerging countries in Africa, Asia 
and Latin America. 

The EIB, EBRD, CDP and Proparco are also supporting the Amundi Planet Emerging Green 
One (‘EGO’) fund, which, at EUR 1.42 billion, is the world’s largest targeted green bond fund 
focused on emerging markets. According to EGO’s 2020 Impact Report, the fund’s portfolio 
consists of 30 green bond issuances from 22 issuers, of which 17 are first-time issuers.

Through a technical assistance facility called ‘Propulse’, Proparco supports partner banks in 
the development of GSS bond frameworks.

17

The EIB has been supporting sustainable finance efforts in partner countries, e.g. by acting 
as anchor investor to attract other local and institutional investors in sustainable projects or 
funds. It has notably supported the Green for growth fund which invests in green projects in 
19 markets across Southeast Europe, including Turkey, the European Eastern Neighbourhood 
Region, and the Middle East and North Africa.

In Kazakhstan and Mongolia, the EBRD is analysing the incentives for green investments. 
The analysis will result in a roadmap of policy actions. Incentives include policies, regulations 
and market practices to encourage green capital market investments.

Promoting sustainable finance policy in global fora

The EU and several Member States are a strong supporter and engine in many international 
sustainable finance initiatives and fora, with the purpose of contributing to global coherence, 
cooperation and harmonisation.

In particular, the EU launched in October 2019, together with relevant authorities of Argentina, 
Canada, Chile, China, India, Kenya and Morocco, the International Platform on Sustainable 
Finance (IPSF) 12. With the aim to exchange best practices and align national and regional 
policy initiatives, the platform offers a multilateral forum for dialogue among policymakers 
that are responsible for sustainable finance policy and regulatory measures. Since its launch, 
membership has continued to grow; currently it includes the EU and 17 other countries, 
among which 8 developing countries13. The current members account for more than 55% of 
greenhouse gas emissions globally, 50% of the world population and 55% of global GDP.

The IPSF has started a working group on taxonomies, co-chaired by China and the EU, 
to undertake a  comprehensive assessment of  existing taxonomies developed by public 
authorities of its member countries. This work has resulted in a so-called Common Ground 
Taxonomy  Report  to  display  the  common  features  of  existing  taxonomies,  starting  with 
China and the EU. Another example of the work of IPSF is that a dedicated working group 
on sustainability-related disclosures has been set up to compare disclosure requirements in 
IPSF member jurisdictions for companies (including banks, asset managers and institutional 
investors), and to identify commonalities and differences in their respective approaches. The 
final report14 of this working group aims at supporting global efforts to improve sustainability 
disclosures as a key cornerstone of sustainable finance, and at facilitating corresponding 
policy cooperation amongst members of the IPSF – and beyond. It provides an overview of 
the state of ESG disclosure related policy measures, including laws, regulations, but also 
recommendations and guidelines, across IPSF jurisdictions, Brazil and the US. 

Beyond  the  IPSF,  the  EU  and  its  Member  States  also  play  an  important  role  in  various 
international fora and networks working on sustainable finance, notably the G20 Sustainable 
Finance Working Group, the Network of Central Banks and Supervisors for Greening the 
Financial System 15, and the Coalition of Finance Ministers for Climate Action16. 

Domestic experience in sustainable finance inside the 
European Union
The European Union is well placed to support partner countries on sustainable finance issues 
thanks to its domestic experience, having built and further developing a strong sustainable 
finance ecosystem and being a global pioneer in the issuance of sustainability-related financial 
instruments. In some cases, countries decide to align as much as possible with the European 
framework – while taking into account their specific challenges and realities, with the understanding 
that the closer their standards are to those of the EU, the more likely they are to easily attract 
European investors willing to achieve impact and invest in truly sustainable economic activities. 

12. International Platform on Sustainable Finance.

13. Argentina, China, India, Indonesia, Kenya, Malaysia, Morocco, and Senegal

14.  https://ec.europa.eu/info/sites/default /files/business_economy _euro/banking _and_finance/

documents/211104-ipsf-esg-disclosure-report_en.pdf

15. The Network of Central Banks and Supervisor for Greening the Financial System.

16. The Coalition of Finance Ministers for Climate Action. 

The International 

Platform on 

Sustainable Finance 

(IPSF) is a multilateral 

forum for dialogue 

among policymakers 

to exchange best 

practices and align 

national and regional 

policy initiatives.

18

The EU sustainable 

finance ecosystem 

is built around major 

building blocks 

which help increase 

transparency and 

provide tools for 

investors to identify 

truly sustainable 

investment 

opportunities.

Building a sustainable finance ecosystem

Domestically, the EU has taken major steps to build a sustainable finance ecosystem around 
a  number  of building blocks  (taxonomy, sustainability-related disclosures, benchmarks, 
standards), which help increase transparency and provide tools for investors to identify truly 
sustainable investment opportunities.

The EU Taxonomy is at the heart of the European sustainable finance ecosystem. It is a robust, 
science-based transparency tool introducing clear performance criteria for determining which 
economic activities make a substantial contribution to the European Green Deal objectives. 
To qualify as environmentally sustainable, an economic activity needs to make a substantial 
contribution  to  at  least  one  of  six  environmental  objectives:  climate  change  mitigation, 
climate change adaptation, sustainable use and protection of water and marine resources, 
the transition to a circular economy, pollution prevention and control, and the protection and 
restoration of biodiversity and ecosystems. At the same time, the activity must not significantly 
detract from other environmental objectives and must meet minimum social safeguards. 

The Taxonomy Regulation17 entered into force on 12 July 2020. It is meant to be complemented 
by delegated acts that set technical screening criteria for the different environmental objectives. 
The first EU Taxonomy Climate Delegated Act18 is applicable since January 2022. It details 
criteria to assess the sustainability of specific activities relevant to the first two of the six 
environmental objectives (climate change adaptation and mitigation) in sectors such as energy, 
forestry, manufacturing, transport and buildings.

The introduction of sustainability-related disclosure requirements also help investors identify 
economic activities can be considered environmentally sustainable. The Delegated Act of 
Article 8 of the Taxonomy Regulation19 lays down taxonomy-related disclosure requirements 
for a number of undertakings and financial market participants. It specifies the content, 
methodology and presentation of information to be disclosed by financial and non-financial 
undertakings concerning the proportion of environmentally sustainable economic activities 
in their business, investments or lending activities. What’s more, the Sustainable Finance 
Disclosure Regulation20 lays down the disclosure obligation for manufacturers of financial 
products and financial advisors towards end-investors. Financial market participants who offer 
financial products in the EU are thus required to disclose the extent to which their financial 
products are sustainable, providing information on the integration of sustainability risks as 
well as on the adverse impacts on sustainability matters, for instance by considering negative 
externalities on environment of investment decisions. Moreover, in April 2021 the Commission 
has proposed a Corporate Sustainability Reporting Directive (CSRD)21 requiring the disclosure 
of information on the way companies operate and manage social and environmental challenges.

Other important building blocks of the EU Sustainable Finance frameworks are benchmarks 
and standards that make it easier for financial market participants to align their investment 
strategies with climate and environmental goals by providing greater transparency to market 
participants. In 2019, the EU adopted the EU Climate Benchmark regulation22 that defines 
two types of benchmarks: climate transition benchmarks, and Paris-aligned benchmarks. 

17. Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the 

establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088.

18. Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 
2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for 
determining the conditions under which an economic activity qualifies as contributing substantially to climate 
change mitigation or climate change adaptation and for determining whether that economic activity causes no 
significant harm to any of the other environmental objectives.

19. Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing Regulation (EU) 
2020/852 of the European Parliament and of the Council by specifying the content and presentation of information 
to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally 
sustainable economic activities and specifying the methodology to comply with that disclosure obligation.

20. Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on 

sustainability-related disclosures in the financial services sector, OJ L 317, 9.12.2019, p. 1.

21. Proposal for a Directive of the European Parliament and of the Council amending Directive 2013/34/
EU, Directive 2004/109/EC, Directive 2006/43/EC and Regulation (EU) No 537/2014, as regards corporate 
sustainability reporting COM/2021/189 final, 21.4.2021.

22. European Commission, EU climate benchmarks and benchmarks’ ESG disclosures.

19

Furthermore, the European Commission proposed in July 2021 a regulation introducing 
the  voluntary  EU  Green  Bond  Standard 23,  the  aim  of  which  would  be  to  introduce 
transparency, comparability and credibility of the green bond market and to encourage 
market participants to issue and invest in such bonds. The EU Commission aims to set 
up  a  ‘gold  standard’  for  which  green  bonds  need  to  fulfil  requirements:  EU  taxonomy-
alignment of financed projects, transparency on how the bond proceeds are allocated as 
well as mandatory external review.

Box 1.2 Sustainable finance initiatives by Member States and European 
financial institutions

Beyond  the  EU,  a  number  of  Member  States  have  also  developed  sustainable  finance 
strategies or policies. France has had a sustainable finance strategy since 2017. By addressing 
climate-related risks through the finance system, the strategy aims to finance the transition to 
sustainable economies in France and in developing countries and, in so doing, to consolidate 
French leadership in green finance. Germany has developed a sustainable finance strategy24 
through a multi-stakeholder process designed to consider sustainability in all financial decisions 
of  public  and  private  actors. The  national  strategy,  published  in  May  2021,  focuses  on 
financial policy coherence, regulation and risk-management to strengthen sustainable finance 
practices in Germany, Europe and the world.  Luxembourg, which was the listing location 
for the world’s very first green bond (issued by the EIB in 2007), established Europe’s first 
sovereign sustainability bond framework. These efforts culminated in the launch of a roadmap 
for sustainable finance in 2018, and of a full-fledged sustainable finance strategy in 202125, 
making sustainable finance a key government priority as well as one of the financial centre’s 
ambitions for 202526. Finland has laid out its sustainable finance roadmap to make finance 
work for the SDGs. 

Most other EU Member States have adopted a framework requiring financial institutions to 
include  sustainability  considerations  in  their  governance  and  risk  management. The  EU, 
EBRD, EIB and 12 Member States mention that they encourage the use of sustainable finance 
methodologies and frameworks, both at home and in partner countries.

23. Proposal for a Regulation of the European Parliament and of the Council on European green bonds, 
COM/2021/391 final, 06.07.2021; European Commission, European green bond standard. See Commission 
proposal for a regulation of the European Parliament and of the Council on European green bonds.

24. The Federal Government (2021), German Sustainable Finance Strategy. 

25. Luxembourg Sustainable Finance Strategy (2021), Luxembourg Sustainable Finance Strategy. 

26. Luxembourg’s Ambitions for 2025: Financing a Sustainable Future.

20

Green, social and sustainable bond issuances 

The EU and its Member States have a good track-record in the issuance of sustainability-
related financial instruments; in fact, they are global pioneers in this domain. According 
to Climate Bonds Initiative, there have been USD 860 billion issued to date in Europe 
(which includes the EU, its Member States, the EIB and the EBRD)27 of which green 
bonds represent over 80%.

For the first time in history, the EU itself has issued thematic bonds (both green and 
social) for the whole EU to finance the recovery from the COVID-19 pandemic, e.g. 
through NextGenerationEU. In October 2021, the EU issued the first NextGenerationEU 
green bond, raising EUR 12 billion to be used exclusively for green and sustainable 
investments across the EU. It was the world’s largest green bond transaction to date. 
With planned new issuances of up to EUR 250 billion, the EU will become the single 
largest source of green bonds. 

By the end of 2020, about 42% of all issuances of green bonds globally were completed 
by entities domiciled in the EU; those issuances totalled USD 465 billion. Sustainability 
bonds accounted for USD 75 billion (23%); social bonds for USD 103 billion (33%)  28. 
Climate-aligned bonds (i.e. bonds not explicitly labelled by the issuer as green or social 
but that finance climate-related activities or projects) reached almost USD 1 trillion. 
Issuances  of  sovereign  GSS  bonds  approached  USD 100 billion  globally  in  2020, 
with the EU’s share exceeding 80%29. The interest of large sovereign issuers in the 
market is relatively recent. 10 Member States have issued sovereign bonds, showing 
leadership in assisting GSS market creation. The first EU Member State to enter the 
market was Poland (2016), while the EIB had issued the first green bond globally in 
2007, for EUR 600 million.

27. Climate Bonds Initiative Database, CBI. Please also refer to Annex 2 - Statistics on Sustainable 

Finance which includes data up to the end of 2021.

28. See Table 2 in Annex 2 - Statistics on Sustainable Finance.

29. See Table 3 in Annex 2 - Statistics on Sustainable Finance.

21

Investing in Sustainable Development - Progress report 2018-2020

DOMESTIC REVENUE MOBILISATION

E
C
N
A
T
R
O
P
M

I

Effective Domestic Revenue Mobilisation and sound Public Finance Management 
are key to governments’ efforts to achieve inclusive growth, poverty eradication and 
sustainable development. Because domestic public finance is vital in providing 
public goods and services, the EU is committed to its ‘collect more and spend better’ 
strategy. 

Reaching a tax to percentage of GDP ratio of 15% is vital for any country to provide 
basic services to its citizens. Yet tax revenues are reaching only around 10% of 
GDP in many low-income countries.

To counter the impact of COVID-19, advanced economies were able to spend 15% 
of their GDP in 2020, while low-income countries were only able to spend 2%.

Every year, an estimated USD 88.6 billion, equivalent to 3.7% of Africa’s GDP, 
leaves the continent as illicit capital flight, and tax havens cost low-income countries 
USD 200 billion a year in lost corporate tax revenues.

To combat international tax evasion 
and avoidance, the EU and its 
Member States support the Global 
Forum on Transparency and 
Exchange of Information for Tax 
Purposes, which helped identify more 
than EUR 100 billion in additional 
revenues. 

All EU Member States are committed 
to the Base Erosion and Profit Shifting  
framework to tackle tax avoidance, 
improve the coherence of international 
tax rules and ensure a more 
transparent tax environment. 

In 2019, the EU and its Member States 
have committed almost EUR 1 billion 
in ODA support for domestic revenue 
mobilisation and public finance 
management to over 90 countries 
notably contributing to improving 
partner countries’ fiscal strategy and 
budgeting, improving transparency of 
public finance and strengthening 
accountability.

The EU and a number of Member 
States are keen supporters of the 
Addis Tax Initiative that aims to 
improve transparency, fairness, 
effectiveness and efficiency of tax 
systems. The EU and Member States 
surpassed their commitment of 
doubling technical cooperation on 
domestic resource mobilisation. The 
recently endorsed Addis Tax Initiative 
Declaration 2025 provides the 
direction for further improvements in 
the field. 

22

Chapter 2  

Domestic Public Resources 

DRM delivers more 

public goods and 

services for the benefit 

of all, strengthening 

the social contract 

between government 

Effective domestic revenue mobilisation (DRM) and sound public finance management (PFM) 
are a prerequisite for inclusive growth, poverty eradication and sustainable development. 
It increases the predictability and stability of financing for development and reduces aid 
dependency. It is key to increasing countries’ resilience and building fiscal space, which are 
especially important in view of the large 2020 and 2021 fiscal deficits caused by COVID-19. 
Coupled  with  sound  public  expenditure  management,  DRM  delivers  more  public  goods 
and services for the benefit of all, strengthening the social contract between government 
and citizens.

and citizens.

As shown in Figure 2.1, domestic revenues remain, after domestic private investment, the 
second-most reliable and accessible long-term source of financing for sustainable development. 

Figure 2.1 – Financing for development as a share of GDP by income group in 2018-2019

Source: World Bank Development Indicators

Countries are ill-positioned to guarantee delivery of basic public services if their tax revenues 
are below 15% of GDP (Gaspar, Jaramillo and Wingender, 2016). Yet tax revenues – though 
increasing – are still only around 10% of GDP in most low-income countries (Figure 2.2). 
Most middle-income countries have stable or slightly increasing tax rates, mostly above 
the 15% level.

23

LICsGross Fixed Capital FormationGovernment Tax RevenueODARemittancesOther official flowsPhilanthropyFDI InflowsLMICsGross Fixed Capital FormationGovernment Tax RevenueODARemittancesOther official flowsPhilanthropyFDI InflowsUMICsGross Fixed Capital FormationGovernment Tax RevenueODARemittancesOther official flowsPhilanthropyFDI Inflows29.08.96.40.20.13.339.30.66.90.20.01.940.80.11.20.00.01.910.815.717.3Financing for Development as % share of GDP by Income Group in 2018-2019 Figure 2.2 – Evolution of domestic public resources, by country group

Sources: For total revenue and tax revenue: IMF World Revenue Longitudinal Data, using GDP-weighted averages of total 
revenues in per cent of GDP for 131 developing countries; for income groups: World Bank classification (2019 ratios are 
based on a smaller group of 47 for which data are available); for progress toward SDGs: (Sachs, Schmidt-Traub, et al. 
2020); for ODA and OOF: OECD DAC; for other indicators, World Bank WDI.

Sustained  periods  of  low  economic  growth  sap  tax  revenues.  Emerging  markets  and 
developing economies suffered a 2.1% recession in 2020 (IMF, 2021a), severely undermining 
revenues at the same time governments were facing increasing needs. Developing countries 
were constrained in their fiscal stimulus package by limited fiscal space (United Nations, 
Inter-agency Task Force on Financing for Development, 2021). To counter the impact of 
COVID-19, advanced economies were able to spend 15% of their GDP in 2020, while low-
income countries could spend only 2%. 

The tax gap can be closed through improved tax policy and tax compliance30, with a particular 
focus on tax evasion, tax avoidance and illicit financial flows, all of which have a major 
negative impact on the level of domestic revenues. But sound public financial management 
also depends on other aspects of domestic public finance so that revenues are converted 
efficiently and effectively into public goods and services. Recognising the close linkages of 
all these areas, the EU adopted its ‘collect more’ and ‘spend better’ approach in 201531 to 
provide a holistic take on domestic public finance. 

Developing countries depend almost twice as much on corporate income tax for revenues as 
developed countries do32. As such, they are much harder hit by the problems of tax fraud, tax 
evasion and tax avoidance. By conservative estimates, developing countries are deprived 
every year of an amount between USD 20 and 40 billion. The IMF estimates that tax havens 
cost governments between USD  500  billion and USD  600  billion a year in lost corporate 
tax revenue, of which low-income economies account for USD 200 billion (Shaxson, 2019). 
International cooperation on tax matters can help developing  countries  collect more 
corporate income tax.

Fighting illicit financial flows can also help. Every year, an estimated USD 88.6 billion, 
equivalent to 3.7% of Africa’s GDP, leaves the continent as illicit capital flight (UNCTAD, 2020). 
Global Financial Integrity, a US think tank, estimates that the annual value of trade-related illicit 
financial flows in and out of developing countries has amounted to, on average, about 20% 
of the value of their total trade with advanced economies (Global Financial Integrity, 2020).

30. The tax gap is the difference between total taxes owed and total taxes paid on time. This gap can be 
closed through improved policy (e.g. eliminating legislative loopholes), better voluntary compliance by taxpayers 
or stronger enforced compliance (e.g. more effective interventions by the tax authorities).

31. European Commission, Staff Working Document, Collect More – Spend Better, Achieving Sustainable 

Development in an Inclusive and Sustainable Way, October 2015.

32. Corporate income tax accounts for 16% of total tax revenues in low- and middle-income economies, 
compared to 8% in developed countries. See Communication from the Commission to the European Parliament 
and the Council on Tax Good Governance in the EU and beyond, 15/07/2020, COM(2020) 313 final. 

24

LICsLMICsUMICs201020112012201320142015201620172018201920102011201220132014201520162017201820192010201120122013201420152016201720182019051015202530Total Revenues as a % of GDPLICsLMICsUMICs201020112012201320142015201620172018201920102011201220132014201520162017201820192010201120122013201420152016201720182019051015Tax Revenues as a % of GDPTax revenues refer to compulsory transfers to the central government for publicpurposes. Certain compulsory transfers such as fines, penalties, and most socialsecurity contributions are excluded. Refunds and corrections of erroneouslycollected tax revenue are treated as negative revenue.Total revenues refer to tax revenues , non-tax revenues (fees, charges, profitsfrom state-owned enterprises, mineral royalties) and grants (including ODAgrants).Collect more, spend better: Tax policy and administration, 
public financial management and governance

Objectives

Capacity-building to improve tax policy and 
tax administration in developing countries 
c a n   b e   a c c e l e r a t e d   t h r o u g h   o ff i c i a l 
development assistance (ODA). The EU 
and other development partners adhering 
to  the  Addis  Tax  Initiative  committed 
to  doubling  their  support  for  technical 
cooperation related to DRM by 2020 against 
a 2015 baseline. An important objective is 
to help partner countries to improve their 
PFM  and  budget  transparency,  to  set 
financially sustainable public policies and 
to improve good governance at all levels.

Most Relevant SDG Goals  
and Targets 

•  17.1 Strengthen domestic resource 
mobilisation, including through 
international support to developing 
countries, to improve domestic capacity 
for tax and other revenue collection.

•  17.1.1 Total government revenue 
as a proportion of GDP, by source.

•  17.1.2 Proportion of domestic 

budget funded by domestic taxes.

Capacity-building to 

improve tax policy 

and tax administration 

in developing 

countries can be 

accelerated through 

Implementation

official development 

assistance (ODA). 

The EU and its Member States demonstrated their support for DRM through EUR 161.9 million 
in commitments in 2019 and EUR 99.7 million in gross disbursements 33. 

The EU and its Member States are strong supporters of the Addis Tax Initiative (ATI), 
a multi-stakeholder partnership of development partners and partner countries established 
in 2015 to improve the transparency, fairness, effectiveness and efficiency of tax systems. 
Besides the European Commission, 12 EU Member States are signatories to the initiative: 
Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, 
Slovakia, Slovenia and Sweden. 

Under  the  2015  declaration, ATI  Members  committed  to  collectively  doubling  technical 
cooperation in the area of DRM by 2020. Technical cooperation comprises several activities, 
among them capacity building for revenue authorities, information technology for revenue 
collection,  and  formulation  of  new  tax  legislation  and  policies.  Data  show  that  EU ATI 
Members  (including  the  United  Kingdom,  an  EU  member  at  the  time)  had  already  met 
this target by 2018, as their commitments to support DRM have more than tripled (from 
USD 103 million to USD 366  million), while their DRM gross disbursements have doubled 
(from USD 106 million to USD 214 million). In contrast, non-EU ATI Members have doubled 
their  DRM  ODA  commitments  but  increased  their  disbursements  only  by  38%  over  the 
same period. By 2018, the latest year for which data have been published, European ATI 
members’ ODA for DRM represented 68% of all ATI members’ total commitments and 57% 
of gross disbursements34.

The EU and these 12 Member States, along with other partners, recently endorsed the Addis 
Tax Initiative Declaration 202535. The EU was instrumental in the negotiating and drafting 
process, and in achieving renewed international consensus on further advancing the DRM 
agenda, in line with Building Back Better. The renewed declaration builds on commitments 
to deploy equitable tax policies, efficient revenue administration, capacity development, 
policy coherence and accountability in tax and revenue matters to close recognised gaps 
in  development  finance  for  the  SDGs.  Endorsement  of  the  renewed  declaration  by  the 
EU Ministers of Economy and Finance in November 2021 and Commissioner Urpilainen’s 
signature of the Declaration on behalf of the Union reflect EU engagement at the highest 
political level. By signing the declaration, the Union lays the ground for more EU and Member 
States initiatives on DRM.

33. Source: OECD Creditor Reporting System. 

34. ATI Monitoring Reports.

35. Addis Tax Initiative. The ATI Declaration 2025 builds on the original declaration adopted in 2015 and 

reflects the renewed international consensus on further advancing the DRM agenda.

25

For the EU, budget 

support programmes 

are key to promoting 

good governance, 

domestic revenue 

mobilisation and public 

financial management 

in partner countries. 

For the EU, budget support programmes are key to promoting good governance, DRM and 
public financial management in partner countries. The latter two are part of the eligibility 
assessment and policy dialogue between EU and partner countries under budget support 
contracts, as shown in Figure 2.3. Over 90 countries profited from budget support through a 
combination of technical assistance, policy dialogue and incentivised reform support. The EU 
and its Member States are the second-largest provider of budget support after multilateral 
organisations. In 2019, Commission payments for DRM amounted to EUR 98 million, of 
which 63% was channelled through budget support indicators, and 37% through projects. 
According to data from the IMF, African countries where the Commission introduced such 
DRM indicators36 saw increased ratios of tax revenue to GDP by 2 percentage points on 
average between 2015 and 2019. 

Figure 2.3 – General and sector budget support provided by the EU and its Member States 
Commitments, EUR million, 2019 prices 

36. Namely Benin, Burkina Faso, Cabo Verde, Cameroon, the Central African Republic, Chad, Côte d’Ivoire, 
Ghana, Guinea, Liberia, Mali, Morocco, Niger, Sierra Leone, Somalia, Tanzania, The Gambia, Togo and Tunisia.

26

201020112012201320142015201620172018201905,00010,00015,00020,0003,21821,1541,8931,3643,1202,0433,995Trend in Official Flows (ODA and OOF)Team EuropeNon-EU DACOther non-EUMultilaterals20102011201220132014201520162017201820193,0801,9231,2341,8751,2631,1021,7951,3421,3461,7351,7301,7281,4675198515522,3501,433Trend in ODA by income groupLDCs/Low IncomeMiddle IncomeTeam EuropeNon-EU bilateral donorsMultilateral Organisations29%America10%America1%America10%Oceania1%Oceania5%Europe45%Africa49%Africa26%Africa43%Asia39%Asia40%AsiaOfficial Flows (ODA and OOF) by Region, Income and PFM-DRM focus, 2019Team EuropeNon-EU bilateral donorsMultilateral Organisations31%UMICs4%UMICs14%UMICs14%LDCs55%LMICs0%Other LICs55%LDCs42%LMICs21%LDCs63%LMICsTeam EuropeNon-EU bilateral donorsMultilateral Organisations19%DRM-PFM5%Emergency9%General Budget52%PSD69%General Budget26%PSD27%General Budget5%Multi-sector15%DRM-PFM0%DRM-PFM14%Social4%Social21%Social29%PSDSource: OECD/DAC - Creditor Reporting System. 

The EU and its Member States’ ODA commitments for public financial management grew 
by 20% in real terms (2019 prices) from 2016-2017 to 2018-2019 to reach EUR 766 million. 
In 2019, the Commission made gross disbursements of EUR 335 million in support of financial 
management reforms, of which 77% was implemented through budget support indicators 
and 23% through projects.

The EU, France, Luxembourg and the Slovak Republic provided financial support to the 
Public Expenditure and Financial Accountability initiative, which assesses strengths 
and weaknesses of public financial management systems in over 150 countries, contributing 
to the reform process.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

For Addis Tax initiative development 

partners, double support for Technical coo-

peration in the area DRM by 2020, in terms 

of both disbursements and commitments. 

Official development assistance financing for 

DRM in 2015 is consider the baseline.

7 u

Help countries to improve their public finan-

cial management and budget transparency, 

to set public policies which are financially 

sustainable, and improve good governance 

7

at all leves.

Domestic Public 

Resources

DRM and PFM

2020

Domestic Public 

Resources

DRM and PFM

2015-

2030

Effort and Progress  
Very strong effort  7   Commitments met  u  
Consistent effort 7

27

IndonesiaEgyptViet NamBangladeshAfghanistanTurkeyPakistanChinaIndia1,69775948445844530418615888Top 10 recipients of EU ODA, 2019International Bank for Reco..Asian Development BankInter-American Developme..Team EuropeIDAIMF (Concessional Trust Fu..United Arab EmiratesAfrican Development BankUnited StatesSaudi Arabia7,0694,7034,0023,9953,0311,3161,170959873333Top 10 donors, Official Flows, 2019International cooperation on tax matters and against illicit 
financial flows 

Objectives

The Addis Agenda points to the need to scale 
up international tax cooperation. The aim is 
to increase information exchanges and close 
loopholes in the legal framework so as to limit 
illicit flows, tax evasion and tax avoidance. In 
addition, building capacity for tax governance 
must be strengthened in partner countries.

Most Relevant SDG Goals  
and Targets 

•  16.4 By 2030, significantly reduce 
illicit financial and arms flows, 
strengthen the recovery and return 
of stolen assets and combat all 
forms of organised crime

Implementation

Global policies and standards 

Good governance in tax matters is enshrined in the EU internal and external strategy on 
taxation37. Transparency and exchange of information are important tools for domestic revenue 
mobilisation. Promoting fair taxation reduces unfair tax competition, which hinders DRM.

The EU supports the OECD’s Global Forum on Transparency and Exchange of Information 
for Tax Purposes38, which promotes standards for exchanging information in tax matters 
among  its  163  member  countries  (including  all  EU  Member  States),  provides  technical 
assistance  to  developing  countries  in  implementing  those  standards  and  in  identifying 
additional revenues (about EUR 107 billion to date). Exchange of information on request is 
the most important practical tool that jurisdictions and their tax administrations can use to 
combat international tax avoidance and tax evasion in cases that concern a specific taxpayer 
or a defined group of taxpayers. The Global Forum performs peer reviews of its member 
jurisdictions’  ability  to  co-operate  with  other  tax  administrations  in  accordance  with  the 
internationally agreed standard. All EU Member States have committed to the international 
standard on automatic exchange of financial account information since 2017 or 2018, have 
signed the related Common Reporting Standard Multilateral Competent Authority Agreement 
and have put the Convention on Mutual Administrative Assistance in Tax Matters into effect. 
Timely and accurate exchange of tax information among countries is crucial in the fight 
against illicit capital flight and tax evasion. 

The EU and its Member States have provided support to the OECD/G20 Inclusive Framework 
on Base Erosion and Profit Shifting (BEPS)39, which had 141 members as of March 2022. All 
27 EU Member States are politically committed to the anti-base erosion and profit shifting 
minimum standards elaborated by the Inclusive Framework and have endorsed its outputs. 

Good governance in tax matters is promoted among EU Member States through legislative 
initiatives or tools such as the Code of Conduct on Business Taxation, which is the EU’s 
primary instrument for preventing harmful tax competition. The original focus of the Code 
of Conduct was on EU Member States. However, Member States have since committed to 
promoting the adoption of good tax governance principles by third countries in the interest of 
improving the global tax governance context, ensuring a level playing field at the international 
level and supporting third-country governments in their effort to implement commitments and 
actions taken at global level.

The EU list of non-cooperative tax jurisdictions was first proposed in 2016 as a tool to 
deal with external risks of tax abuse and unfair tax competition. Since then, it has become 
a  powerful  tool  to  promote  good  tax  governance  internationally  and  has  contributed  to 
fighting tax avoidance and  tax evasion  worldwide. The EU Council has published a  list 
of non-cooperative tax jurisdictions regularly since December 2017, following screening 
and dialogue with a large number of third countries, on criteria for tax transparency, fair 

37. See https://ec.europa.eu/taxation_customs/taxation-1/eu-tax-policy-strategy_en

38. OECD, Global Forum on Transparency and Exchange of Information for Tax Purposes. 

39. OECD (2018), OECD/G20 Inclusive Framework on BEPS.

Exchange of 

information on request 

is the most important 

practical tool that 

jurisdictions and their 

tax administrations 

can use to combat 

international tax 

avoidance and tax 

evasion in cases that 

concern a specific 

taxpayer or a defined 

group of taxpayers. 

28

In July 2020, 

the European 

Commission issued 

a Communication on 

Tax Good Governance 

in the EU and 

Beyond, identifying 

needed changes and 

identifying priorities 

for action to enhance 

good governance and 

ensure fair taxation.

taxation and measures to fight base erosion and profit shifting. In this context, the European 
Commission has increased its dialogue with partner countries on tax good governance 
issues, including the reform of preferential tax regimes that are considered harmful. The 
process of drawing up an EU list of non-cooperative tax jurisdictions has prompted several 
developing countries to join international fora such as the Global Forum on Transparency 
and Exchange of Information for Tax Purposes and the BEPS Inclusive Framework, as well 
as to become parties to the Convention on Mutual Administrative Assistance in Tax Matters. 
Moreover, the fact that dozens of third countries have taken concrete measures to improve 
their tax transparency standards has contributed to raising the level of good governance 
globally, which is particularly beneficial for developing countries disproportionately affected 
by illicit financial flows. In connection to the EU list, the Commission also adopted on 14 
July 2020 a Recommendation on making state financial support to undertakings in the Union 
conditional on the absence of links to non-cooperating jurisdictions40. The aim has been to 
exclude companies with links to listed jurisdictions from receiving public funds and to curb 
cases of tax avoidance and illicit financial flows. 

In July 2020, the European Commission issued a Communication on Tax Good Governance 
in the EU and Beyond41, identifying needed changes and identifying priorities for action to 
enhance good governance and ensure fair taxation. The Commission has also developed a 
toolbox42 for Member States to use when negotiating double taxation treaties with developing 
countries to support their DRM.

In 2021, the EU Council and European Parliament adopted a directive on public country-
by-country reporting43 that requires public disclosure of tax information by companies, EU-
based or foreign, with a total consolidated revenue of more than EUR 750 million. When the 
directive will be transposed by Member States, such companies will have to publicly disclose 
income tax information for each EU Member State, as well as non-EU States included in the 
EU’s list of non-cooperative jurisdictions for tax purposes.

The OECD-led and G20-mandated global tax agreement, approved by 137 countries on 
8 October 2021, is based on two pillars. Pillar 1 foresees a fairer distribution of profits and 
taxing rights among countries with respect to the largest and most profitable multinational 
enterprises. It is estimated that it will re-allocate more than USD 125 billion of the profits 
earned by about a hundred of the world’s largest and most profitable multinational enterprises 
from their home countries to the markets where they have business activities and earn profits, 
regardless of whether firms have a physical presence there. Pillar 2 introduces a global 
minimum effective corporate tax rate of 15%. The new minimum rate will apply to companies 
with revenue above EUR 750 million; it is estimated to generate around USD 150 billion in 
additional tax revenues annually at global level. Governments may still set whatever domestic 
corporate tax rate they want, but if companies pay lower rates in a particular country, their 
country of tax residence must ‘top up’  their  taxes to the 15%  minimum, eliminating the 
advantage of shifting profits. The agreement is expected to be implemented by 2023 by 
all 137 countries that signed the agreement. Through swift implementation, the European 
Commission is making an important contribution to the wider agenda on tax avoidance and 
BEPS worldwide and has made a legislative proposal for a directive for the implementation 
in the EU of Pillar 244.

Support for partner countries

The EU and its Member States have been providing support to partner countries, both through 
global programmes and through direct bilateral support.

40.  Commission  Recommendation  on  making  State  financial  support  to  undertakings  in  the  Union 

conditional on the absence of links to non-cooperative jurisdictions, 14/7/2020, C(2020)4885. 

41. European Commission, Tax Good Governance.

42. European Commission, Platform for Tax Good Governance. 

43. Directive (EU) 2021/2101 of the European Parliament and of the Council of 24 November 2021, 
amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and 
branches, L429/1.

44. Proposal for a Council Directive on ensuring a global minimum level of taxation for multinational groups 

in the Union, 22.12.2021, COM(2021) 823 final.

29

 
 The European 

Commission is 

making an important 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

contribution to the 

Domestic Public 

2.2 Illicit financial 

Resources

flows

wider agenda on 

tax avoidance.

2015-2030

Increase the exchange of information and 

close loopholes and mismatches in the 

legal framework to limit tax evasion and tax 

7 u

avoidance.

Domestic Public 

2.2 Illicit financial 

Resources

flows

2015-2030

Scale up international cooperation against 

illicit financial flows.

7

Effort and Progress  

Consistent effort 7 Commitments likely to be met u

30

Investing in Sustainable Development - Progress report 2018-2020

DOMESTIC AND INTERNATIONAL PRIVATE 
BUSINESS AND FINANCE

Private investment and remittances are key sources of funding for sustainable 
development. 

Improvements in the business environment and greater access to finance for Micro, 
Small and Medium Enterprises and the poor are crucial to unlock the potential of the 
private sector for job creation and sustainable development.

Reaching the SDG target on reduction of remittances costs at the EU level would 
result in saving EUR 1.5 billion in transaction costs every year.

E
C
N
A
T
R
O
P
M

I

The EU and its Member States are 
supporting the use of responsible 
business practices along supply 
chains through policies on human 
rights, trade, and responsible value 
chains, as well as sustainability 
disclosure requirements. 

The EU and its Member States have 
taken important steps to support 
remittance flows, notably steps to 
increase market transparency and 
provide free information to help 
migrants make an informed decision 
about which channels to use. 

Cost of remittances from the EU to 
developing countries has thus dropped 
by 2 percentage points since 2016. 

The EU and its Member States have 
made private sector development a top 
policy priority. Commitments to private 
sector development have grown by 
two thirds over the last decade to over 
EUR 28 billion in 2019.  

The EU-Africa Summit and the EU-
Africa Business Forum recently 
highlighted the important role of 
private sector development and 
investment to promote jobs and growth 
in Africa.

The EU and its Member States have 
contributed to improving the business 
environment and investment climate. 
42% of the EU’s sector budget support 
in 2019 concerned private sector 
development.

The Investment Climate Reform 
Facility supports public-private 
dialogue on investment climate in 
African, Caribbean and Pacific 
countries.

31

Chapter 3  

Domestic and International  

Private Business and Finance 

Private business and finance are powerful drivers of economic growth, productivity, innovation 
and jobs. Both serve as important sources of funding for sustainable development through 
gross fixed capital formation45, which includes private domestic investment, remittances and 
foreign direct investments (see Figure 3.1).

Low-income and lower middle-income countries still face major challenges in accessing and 
using sources of finance for sustainable investments (Sachs, Kroll et al., 2021). Progress in 
this Action Area has so far been limited. The cost of remittances to developing countries is 
falling – but at a slow pace. Access to credit by micro, small and medium-sized enterprises 
(MSMEs) stagnated over the period 2014-2019 as a percentage of GDP in lower middle-
income and declined in low-income and upper middle-income countries, implying low levels 
of private sector development. 

The COVID-19 pandemic led to a further decline in external financial flows to low- 
and middle-income countries, where foreign direct investments fell by over 30% in 2020 
(excluding China). While flows of foreign direct investment recovered overall in 2021, the 
recovery was concentrated in high-income countries, while low-income economies suffered a 
further 9% decline (UNCTAD, 2021). Officially recorded remittance flows remained relatively 
resilient in 2020, dropping just 1.6% below 2019 (and totalling USD 548 billion), thanks to a 
shift to digital channels in the first half of 2020.

Both economic growth and private investment in developing countries have been 
negatively affected by COVID-19. The pandemic has likely lowered potential output because 
of its protracted toll on human and physical capital. In emerging and developing economies, 
growth is expected to drop from 6.3% in 2021 to 4.6% in 2022 and 4.4% in 2023. By 2023, 
while all advanced economies will have achieved a full output recovery, output and investment 
in emerging and developing economies will remain 4% below their pre-pandemic trends 
(World Bank, 2022).

The main objectives of EU commitments in this area are to: 

i) 

ii) 

iii) 

support private sector development, sustainable investment, and policies to 
improve the regulatory environment for the private sector and improve access 
to finance for MSMEs and the poor; 

support responsible business practices and responsible management of supply 
chains; and

strengthen remittances as a source of private investment by reducing the average 
cost of remittance transactions to less than 3% by 2030 (with no remittance 
corridor having costs higher than 5%), while encouraging efforts to channel 
remittances into productive investments. 

This  chapter  focuses  on  the  efforts  of  the  EU  and  its  Member  States  to  achieve  these 
objectives.

45. Gross fixed capital formation, also called ‘investment’, is defined as the acquisition of produced assets 
(including purchases of second-hand assets), including the production of such assets by producers for their 
own use, minus disposals (OECD).

32

Figure 3.1 – Domestic and international private business and finance: Progress on means  
of implementation 

)

P
D
G

f

o
%

(

s
k
n
a
b

l

i

a
c
r
e
m
m
o
c
m
o
r
f

s
n
a
o

l

i

E
M
S
g
n
d
n
a
t
s
t
u
O

Source: Sachs, Kroll et al., 2021 and World Bank Development Indicators. 

33

LICsGross Fixed Capital FormationGovernment Tax RevenueODARemittancesOther official flowsPhilanthropyFDI InflowsLMICsGross Fixed Capital FormationGovernment Tax RevenueODARemittancesOther official flowsPhilanthropyFDI InflowsUMICsGross Fixed Capital FormationGovernment Tax RevenueODARemittancesOther official flowsPhilanthropyFDI Inflows10.88.90.20.115.70.60.20.017.30.10.00.029.06.43.339.36.91.940.81.21.9Gross Fixed Capital FormationGovernment Tax RevenueODARemittancesOther official flowsPhilanthropyFDI Inflows4.04.55.05.56.06.57.07.58.08.5% cost of sending $2006.66.57.57.46.86.17.85.95.58.26.96.37.26.37.1Destination IncomeLow incomeLower middle incomeUpper middle income2016201720182019202020142015201620172018201911.76.711.97.46.710.93.011.56.42.46.33.42.312.312.43.36.22.2Income GroupLICsLMICsUMICs 
 
 
 
 
 
 
 
Private sector development

Objectives 

To unlock the potential of the private sector 
for  job  creation,  innovation  and  overall 
sustainable development, Action Area B of 
the Addis Agenda calls for more sustainable 
i n v e s t m e n t   ( b y   i n t e r n a t i o n a l   a n d   E U 
companies,  among  others),  improvements 
in  the  business  environment  for  the  local 
private sector and greater access to finance 
for MSMEs and the poor.

Implementation

Private sector development as a priority

Jobs  and  growth  in  partner  countries  are 
among the most important priorities for the 
EU  and  its  Member  States,  which  should 
work closely with partner countries to help 
them  develop  and  implement  policies  in 
support of private sector development and 
private sector engagement. 

In recent years, the EU and Member States 
have launched several high-level initiatives 
to emphasise the importance of the private 
sector in promoting growth and employment. 
The African  continent  has  attracted  most 
attention.

Most Relevant SDG Goals  
and Targets 

•  8.3: Promote development-oriented 
policies that support productive 
activities, decent job creation, 
entrepreneurship, creativity 
and innovation, and encourage 
the formalisation and growth of 
micro-, small- and medium-sized 
enterprises, including through 
access to financial services.

•  9.3: Increase the access of 

small-scale industrial and other 
enterprises, in particular in 
developing countries, to financial 
services, including affordable credit, 
and their integration into value 
chains and markets.

•  17.17: Encourage and promote 

effective public, public-private and 
civil society partnerships, building 
on the experience and resourcing 
strategies of partnerships.

The Africa-Europe Alliance for sustainable investment and jobs was launched in 2018 
to modernise the EU’s long-standing partnership with Africa. Focusing on investment and 
trade, it seeks to boost employment and sustainable growth on the continent. 

The  G20  Compact  with Africa,  launched  in  2017  under  the  German  G20  Presidency, 
promotes  private  investment  in Africa  through  improvements  in  the  macroeconomic, 
business  and  financing  frameworks. To  date,  12 African  countries  have  joined:  Benin, 
Burkina Faso, Côte d’Ivoire, Egypt, Ethiopia, Ghana, Guinea, Morocco, Rwanda, Senegal, 
Togo  and Tunisia.  Since  2018,  most  countries  have  strengthened  their  macroeconomic 
frameworks, their business frameworks by leveraging digital solutions (e.g. e-government) 
and their financial frameworks by facilitating secured lending (e.g. property rights, leasing 
and commercial courts).

Investment mobilisation and private sector development in Africa, as well as support for 
the African Continental Free Trade Agreement, are top priorities on the agenda of the EU 
(as discussed further in Chapter 5). 

The Commission’s November 2017 communication on Aid for Trade46 was designed to 
modernise EU trade assistance to partner countries and support local small and medium-
sized enterprises (SMEs). To further highlight the relevance of the private sector in both 
Africa and the EU, the European Commission issued a new joint communication, ‘Towards 
a  comprehensive  strategy  with Africa’,  in  2020. The  Commission  also  provides  yearly 
progress  reports  on  the  EU’s  contribution  to  the  global Aid  for Trade  initiative  and  an 

46. Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions, Achieving Prosperity through Trade and Investment 
Updating the 2007 Joint EU Strategy on Aid for Trade, COM(2017) 667 final; Joint communication to the European 
Parliament and the Council (2020), Towards a comprehensive Strategy with Africa’, JOIN (2020) 4 final.

In recent years, the 

EU and Member 

States have 

launched several 

high-level initiatives 

to emphasise the 

importance of the 

private sector in 

promoting growth 

and employment. 

34

overview of the implementation of the EU’s Aid for Trade Strategy47. Platforms such as the 
EU Africa  Summit  and the EU Africa Business Forum  regularly bring together business 
representatives and high-level representatives from the EU and Africa to align and discuss 
major development priorities.

Several Member States have included private sector development as a key objective of their 
development cooperation strategies, recognising the important role of access to finance.

The EU and its Member States deliver substantial grant funding for private sector development 
across a wide range of activities, including access to finance for MSMEs, financial inclusion, 
inclusive business models, regulatory reforms and the provision of business development 
services, with a particular focus on improving the investment climate. Figure 3.2 shows 
that EU collective assistance for private sector development grew by two-thirds over the 
last decade, from EUR 17 billion in 2010 to over EUR 28 billion in 2019.

Figure 3.2 – The EU and Member States’ assistance for private sector development
Commitments, EUR millions, constant 2019 prices.

Source: OECD/DAC Creditor Reporting System. 

The new Neighbourhood Development and International Cooperation Instrument (NDICI) 
– Global Europe48 introduced in 2021 puts a strong focus on private sector development 
as a cross-cutting means to build resilience and promote the creation of decent jobs in 
low- and middle-income countries. Under the mantle of the European Fund for Sustainable 
Development Plus (EFSD+), NDICI – Global Europe will support sustainable investment 
worldwide by leveraging private capital to complement direct external cooperation grants, 
including blending and guarantees to support MSMEs. 

47. See also chapter 5.

48.  Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing 
the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and 
repealing Decision No 466/2014/EU of the European Parliament and of the Council and repealing Regulation (EU) 
2017/1601 of the European Parliament and of the Council and Council Regulation (EC, Euratom) No 480/2009.

35

20102011201220132014201520162017201820190K5K10K15K20K25K30KCommiments, EUR millions, 2019 prices28,30617,042SectorsConstructionTourismFishingMineral Resources & MiningCommunicationsForestryTrade Policies & RegulationsBusiness & Other ServicesSocial ProtectionIndustryAdvanced education and vocational trainingOthersWater Supply & SanitationAgricultureGovernance and PFMBanking & Financial ServicesTransport & StorageEnergyThe European 

EU and Member States’ progress on financing for development commitments (2018-2020)

Union and Member 

Area

Section

Deadline

Commitments

Effort

Progress

States have are 

Domestic  

and international 

3.1 Private- sector 

supporting MSMEs 

private business 

development

2015-2030

Facilitate sustainable investment and priva-

te-sector development in partner countries. 7

thanks to technical 

support, credit 

and guarantees

36

and finance

Effort and Progress  
Very strong effort 7

Improving partner countries’ investment climate and business environment 

As part of their interventions to develop the private sector, the European Commission, the 
EIB, EBRD and 16 Member States49 have been providing support to partner countries to 
improve their investment climate, particularly their business environment50. 

EU budget support is one important tool to support the investment climate in partner 
countries. Through eligibility requirements (pertaining to macroeconomic stability and public 
financial management) and related policy dialogue with local authorities, budget support has 
had a positive impact on the local investment climate. 42% of sector budget support provided 
by the EU and its Member States in 2019 concerned private sector development.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Domestic  

Section

Deadline

Commitments

Effort

Progress

and international 

3.1 Private- sector 

private business 

development

2015-2030

Support policies aimed at improving the 

regulatory environment for the private sector. 7

and finance

Effort and Progress  
Consistent effort 7

Financial and technical support for micro, small and medium-sized businesses

In  addition  to  overall  framework  conditions  and  investment  packages,  the  European 
Commission and 11 Member States51 have funded more than 75 bilateral programmes to 
provide direct credit, guarantees and technical support for MSMEs in partner countries. 
Most are focused on access to finance and technical assistance in rural areas; two-thirds 
target  women  entrepreneurs. The  programmes  further  help  to  make  local  businesses 
bankable, removing a major obstacle to investment. A growing number of interventions support 
SMEs in accessing not only traditional sources of finance, such as microfinance and bank 
finance, but also through capital markets or venture capital.

However, EU official development assistance for formal and informal financial intermediaries 
declined from EUR 3.1 billion in 2015 to EUR 2.8 billion in 2019. In parallel,  access to credit 
by SMEs stagnated over the period 2014-2019 as a percentage of GDP in lower middle-
income and declined in low-income and upper middle-income countries, implying low levels 
of private sector development52. In 2018, 31 million formal MSMEs in developing countries 
(41%) have unmet financing needs53. The impact of COVID-19 restrictions on access to 
finance for accelerated digitalisation of financial services remains to be assessed.

The EU4Business programme54 is an umbrella initiative of the EU that includes all EU support 
SMEs in Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. One EU-supported 

49. Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Lithuania, 

Luxembourg, Netherlands, Poland, Portugal, Slovenia, and Sweden.

50. The business environment is a sub-set of the investment climate with a narrower focus on the legislation, 

regulation, and administration pertaining to starting and operating a business.

51. Austria, Belgium, Cyprus, Estonia, France, Germany, Finland, Hungary, Luxembourg, Slovenia, and Spain.

52. https://data.imf.org/?sk=E5DCAB7E-A5CA-4892-A6EA-598B5463A34C.

53. https://www.smefinanceforum.org/data-sites/msme-finance-gap. 

54. EU4Business

project  managed  by  the  EBRD  targets  women  entrepreneurs,  helping  partner  financial 
institutions understand the sector and develop relevant product offerings and advising and 
mentoring female entrepreneurs as they expand their businesses.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Domestic  

Section

Deadline

Commitments

Effort

Progress

and international 

3.1 Private- sector 

private business 

development

Provide micro, small, and medium-sized en-

2015-2030

terprises (MSMEs) and the poor with greater 

6

access to finance.

and finance

Effort and Progress  
Minimal effort 6

Sustainable business practices

Objectives

The EU and its Member States strive to support 
responsible business conduct and the responsible 
management of supply chains. 

Businesses  are  asked  to  step  up  their  efforts 
to  report  sustainability  information.  Doing  so 
incentivises  them  to  transform  their  business 
models by adopting sustainable business practices 
across entire supply chains. 

Most Relevant SDG Goals  
and Targets 

1 2 . 6 :   E n c o u r a g e   c o m p a n i e s , 
especially  large  and  transnational 
companies,  to  adopt  sustainable 
practices and to integrate sustainability 
information into their reporting cycle.

Action Area B calls on stakeholders to directly encourage companies to adopt sustainable 
practices and to ensure that their company operations have no harmful impact. 

Implementation

EU policies to promote responsible and sustainable business conduct along 
supply chains

The European Commission is cooperating with international organisations, the private sector 
and civil society to encourage responsible business conduct, and to address human rights 
violations, labour rights, environmental risks and corruption, in global supply chains. The 
Commission has introduced legal requirements for EU businesses to report on sustainability 
impacts across entire supply chains. 

The EU and its Member States are committed to further strengthening the EU’s global leadership 
in human rights, democracy, and responsible and sustainable trade that leaves no one behind.

With regard to specific trade policies affecting third countries, the European Commission 
adopted in February 2021 a Trade Policy Review: An Open, Sustainable and Assertive 
Trade Policy55 that reflects the EU’s goal of stepping up efforts to promote EU values and 
standards (including on human rights and sustainable development). The 2017 Aid for Trade 
Communication more explicitly aligned Aid for Trade with responsible social and environmental 
sustainability principles56. Another Commission initiative, ‘Trade for All – Towards a more 
responsible trade and investment’ (European Union, 2015), was designed to facilitate 
responsible  management  of  global  supply  chains  on  specific  issues  (conflict  minerals, 
illegal logging, and labour regulations) and to promote fair and ethical trade schemes while 
developing more sustainable trade opportunities for small producers in third countries.

55. Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions, Trade Policy Review – An Open, Sustainable and 
Assertive Trade Policy. Brussels, 18.2.2021, COM (2021) 66 final.

56. European Commission (2017), Achieving Prosperity through Trade and Investment – Updating the 2007 

Joint EU Strategy on Aid for Trade, Commission Communication, COM(2017) 667 final.

37

The EU has also adopted a set of legislative measures specifically related to supply chains. 
Among these are the 2017 Council Conclusions on Sustainable Garment Value Chains57 and 
the December 2020 Council Conclusions on Human Rights and Decent Work in Global Supply 
Chains58. In February 2022, the Commission presented a Communication on Decent Work 
Worldwide59 that reaffirmed the EU’s commitment to champion decent work both at home 
and around the world. The elimination of child labour and forced labour is at the heart of this 
endeavour. The Commission has also proposed a Directive on Corporate Sustainability Due 
Diligence60 that would impose extensive and legally enforceable duties on large European 
companies, as well as large non-EU companies doing business in Europe, related to the 
human rights and environmental impacts of their operations and value chains.

The EU has also adopted the EU Non-Financial Reporting Directive requiring EU companies 
to report on due diligence. A proposal for a Corporate Sustainability Reporting Directive is 
currently being discussed by the co-legislators61. 

In January 2021 the EU Conflict Mineral Regulation came into force. It obliges importers of 
certain minerals from conflict-affected and high-risk areas to do supply chain due diligence 
to ensure that they are sourcing minerals responsibly.

Several EU Member States have measures in place to raise awareness among EU businesses 
and  to  provide  guidance  on  implementing  international  standards  of  corporate  social 
responsibility. 

Using development cooperation to promote sustainable business practices

In the 2018-2020 period, the EU and Member States62 supported a range of measures and 
programmes to promote the adoption of internationally agreed principles and standards 
of corporate social responsibility. During the same period, the EU used development 
cooperation funding instruments to promote responsible business conduct and corporate 
social responsibility in partner countries. In Asia, the ‘Ship to Shore Rights‘ (EUR 4.2 million) 
of the International Labour Organisation, concluded in 2020, provided support to the Thai 
government  to  combat  forced  labour  (primarily  by  migrant  workers  from  Cambodia  and 
Myanmar) in the fishing and seafood industries. The  EU-funded  ‘Safe and  Fair’ project 
(EUR 25 million) helps ensure that labour migration is safe and fair for all women workers in 
the ASEAN region. Since 2017 the EU has provided financial support for the ILO-led ‘Trade 
for Decent Work’ project, which covers 12 partner countries in Africa, Asia and Latin America. 

The EU and its Member States also provide direct support to promote sustainable business 
practices. Programmes consider the local context, challenges and standards in specific 
supply  chains  (e.g.  textile,  minerals)  as  well  as  the  needs  of  specific  segments  of  the 
population (e.g. migrants). EU support for partner countries in the sustainable development 
and  good  governance  of  their  mineral  resources  totalled  EUR  35  million  in  2020. This 
included support for the European Partnership on Responsible Minerals, a multi-stakeholder 
partnership between governments, companies and civil society that accompanied the EU 
Conflict Minerals regulation. 

Another  example  is  the  Digital2Equal  initiative,  a  partnership  between  the  EU  and  the 
International Finance Corporation, which works with international companies and start-ups 
to increase women’s engagement in the digital economy across global supply chains and in 
recruitment, management and training.

57. Council of the European Union (2017), Sustainable garment value chains – Council Conclusions, 9381/17. 

58. Council of the European Union (2020), Human Rights and Decent Work in Global Supply Chains, 

Council Conclusions 13512/20.

59. Communication from the Commission to the European Parliament, the Council and the European 
Economic and Social Committee on decent work worldwide for a global just transition and a sustainable recovery 
- COM(2022) 66 final.

60. Proposal for a Directive of the European Parliament and of the Council on Corporate Sustainability 

Due Diligence and amending Directive (EU) 2019/1937, COM(2022) 71 final.

61. For more details, please see chapter 2.

62. Notably Austria, Czech Republic, Germany, Spain, Finland, Luxembourg, Slovenia, and Sweden.

Several EU Member 

States have measures 

in place to raise 

awareness among 

EU businesses and 

to provide guidance 

on implementing 

international 

standards of 

corporate social 

responsibility. 

38

Remittances from 

the EU have a truly 

global reach and 

more than 100 million 

people in developing 

countries benefit 

from remittances sent 

from within the EU 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Domestic  

and international 

3.2 Sustainable 

private business 

business

2030

Support responsible business practices and 

responsible management of supply chains. 7

and finance

Effort and Progress  
Consistent effort 7 

Remittances

Objectives

Remittances are an important consumption-smoothing 
mechanism  for  recipient  households,  one  that 
increases their resilience. Excluding China, remittance 
flows surpassed the sum of foreign direct investment 
(USD 259 billion) and official development assistance 
(USD 161 billion) in 2020 (World Bank, 2021). They 
are also expected to increase by 2.6% in 2021 with 
the rebound in global growth. 

Most Relevant SDG Goals 
and Targets 

10.c.1:  By  2030,  reduce  to  less 
than  3  per  cent  the  transaction 
costs of migrant remittances and 
eliminate remittance corridors with 
costs higher than 5 per cent.

While remittances support around 700 million people in the world, migrants still bear a large 
share of the costs of these transactions. The EU and its Member States aim to reduce the 
average cost of remittance transactions to less than 3% by 2030, with no remittance corridor 
having  costs  higher  than  5%. Another  key  objective  is  to  encourage  efforts  to  channel 
remittances into productive investments.

Early  in  the  pandemic,  as  volumes  for  cash-based  services  fell,  countries  cooperated 
with remittance service providers to move to digital services, thus allowing remittances 
to rapidly recover. A study prepared for the October 2021 G20 in Rome concluded that 
countries that were able to achieve cooperation and coordination between the public and 
private sectors were able to better withstand the early shock as the pandemic took hold 
(IFAD and World Bank, 2021).

Implementation

Remittances from the EU have a truly global reach, with the largest share going to Asia 
(31%), followed by Africa (29%), non-EU European states (21%) and Latin America (11%). 
In total, about 105 million people in the developing countries benefit from remittances sent 
from within the EU (European Commission, 2021).

The EU and its Member States are striving to enhance the impact of remittances by: (1) 
reducing the cost of remittances through regulation and transparency; and (2) encouraging 
the productive use of remittances in partner countries.

Reducing the cost of remittances through regulation and transparency 

The Addis Agenda calls for public interventions, including technical and legal improvements, 
to effectively reduce the costs of remittances, e.g. by increasing transparency in the market. 
The EU and its Member States have taken steps to reduce the costs of sending and 
receiving remittances in EU Member States, but more needs to be done to achieve 
the SDG 2030 target of 3%. 

The average cost of sending remittances from the EU to developing countries has 
dropped by 2 percentage points since the adoption of the SDGs. The decline in prices 
for transfers of remittances to developing countries from the EU Member States included 
in the World Bank’s remittance database was generally slow through the end of 2020, with 

39

the simple average declining from 7.8% in Q3 2015 to 6.5% at the end of 2020 and to 5.8% 
by Q3 2021 (Figure 3.3)63. Reaching the SDG target on remittance costs reduction at the 
EU level would save EUR 1.5 billion in transaction costs every year.

The European Union has adopted legislation favouring greater transparency in the market. 
The revised EU Payment Services Directive64 that was transposed into national legislation of EU 
Member States in 2018 increased the transparency of remittances costs in the EU. In addition, 
the revised Cross-border Payments Regulation65 that came into force in 2019 introduced 
enhanced currency conversion transparency requirements for intra-EU credit transfers. 

Several EU Member States have also introduced services to directly provide citizens 
with information and costs comparisons of different remittances providers66. To enhance 
transparency and help migrants make informed choices, France, Germany, Italy and Sweden 
have introduced portals67 comparing prices of transfers, certified by the World Bank as meeting 
12 minimum mandatory requirements of a national price database for remittance services.

Figure 3.3 – Costs of remittances to low- and middle-income countries in 10 EU Member States 
Cost as percentage of a USD 200 remittance, simple average, 2016-2022.

Source: World Bank, remittance prices worldwide, http://remittanceprices.worldbank.org/en. 
Note: Included are Member States that report cost in a matrix format: Austria, Belgium, Czech Republic, France, Germany, 
Italy, Netherlands, Portugal, Spain, and Sweden.

63. Source: World Bank Data, available at: https://remittanceprices.worldbank.org/en. 

64. Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on 
payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and 
Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC. 

65. Regulation (EU) 2019/518 of the European Parliament and of the Council of 19 March 2019 amending 
Regulation (EC) No 924/2009 as regards certain charges on cross-border payments in the Union and currency 
conversion charges.

66. Global Partnership for Financial Inclusion (2017), G20 2017 National Remittance Plans Overview.

67. http://www.envoidargent.fr; www.GeldtransFAIR.de; https://www.mandasoldiacasa.it/en; https://www.

moneyfromsweden.se/en 

40

2016201720182019202020212022012345678Average Cost6.307.046.976.817.977.236.456.267.836.826.275.80SDG 2030 TargetSourceEU Member StatesNon-EU DACOther countriesRemittances may 

Encouraging the productive use of remittances

constitute the first 

access to formal 

financial services for 

vulnerable segments 

of the population.

Remittances not only enable receivers to meet daily consumption needs but also to invest in 
health, skills and business activities. The EU and its Member States are supporting several 
initiatives at the global, regional and national levels to improve the productive use 
of remittances (see Box 3.1). While most projects provide technical assistance to support 
entrepreneurship skills among remittance receivers, some also offer additional financial 
support for local business development. Furthermore, Member States support interventions 
improving access to financial services among migrants and populations in home countries, 
as remittances may constitute the first access to formal financial services for vulnerable 
segments of the population.

Box 3.1 – Enhancing the productive use of remittances

In December 2018, the European Commission and IFAD launched the ‘Platform for Remittances, 
Investments and Migrants’ Entrepreneurship in Africa’ (PRIME Africa, EUR 15 million, 2019-2023), 
aiming to improve the management of remittances, reduce the cost of transfers and improve their 
use for development outcomes on the continent. PRIME Africa empowers migrants and their 
families through financial education, digitalisation and financial inclusion, while also encouraging 
migrant investment and entrepreneurship. The initiative targets 7 African countries (Senegal, 
The Gambia, Ghana, Kenya, Uganda, South Africa and Morocco). 

The EU and France encourage productive investments by members of the diaspora in their 
countries of origin through the Meet Africa project, the second phase of which was launched in 2020. 
Meet Africa aims to strengthen the ecosystem of actors in charge of supporting entrepreneurship 
among the diaspora and to provide technical and financial support to entrepreneurs involved 
in business development in African countries. Meet Africa 2 aims to promote a sustainable 
relationship between the expatriate community and targeted African countries to create and 
strengthen economic bridges, formalise new or existing partnerships and foster the creation of 
economic and employment activities in Africa.

Germany’s Development Cooperation consults regulators in various partner countries (e.g. 
Morocco, Mozambique, Jordan and Ghana) on the regulation and supervision of mobile financial 
services and inclusive payment systems. In Jordan, for instance, it is advising the central bank 
on how to improve access to remittances and other financial services through digital solutions. 
Germany also continues to support KNOMAD to generate recommendations for policy through 
research and knowledge exchange. Germany encourages diaspora investments in six African 
countries to support start-ups and micro-entrepreneurs through the digital ‘WIDU.africa’ platform, 
which channels remittances into sustainable investments by small businesses owned by friends 
and family members at home, topping them up with a 100% grant. Since 2019, 9,000 members 
of the Ghanaian and Cameroonian diaspora registered with the platform and invested a total of 
EUR 2 million in over 1,300 approved projects. To respond to COVID-19-induced challenges, 
WIDU has made additional grants available in the health, food and mobility industries since 2020. 

Sweden’s aid agency, Sida, supports ‘Remittances for Development in Africa 2019-2022’, a 
programme of the UN Capital Development Fund designed to enhance regional harmonisation 
of remittance policies and the availability of affordable, accessible and reliable digital remittances 
and financial products for migrants and their families in Africa.

Source: 2021 Questionnaire and Global Partnership for Financial Inclusion 2020. a. https://openaid.se/en/activities/
SE-0-SE-6-11792A0101-RSS-24010.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Domestic  

and international 

private business 

and finance

3.2 Remittances

2030

corridor having costs greater than 5%, and 

Reduce the average cost of remittance tran-

sactions to less than 3% by 2030, with no 

encourage efforts to channel remittances 

into productive investments.

6 u

Effort and Progress  
Minimal effort 6  Insuficient progress u

41

Investing in Sustainable Development - Progress report 2018-2020

INTERNATIONAL DEVELOPMENT COOPERATION

Official development assistance (ODA) is a major source of funding, particularly for 
least developed countries as a complement to other sources of finance. 

COVID-19 has hit developing countries particularly hard, reducing fiscal space by 
several percentage points of GDP in 2020 in several countries. In a context of 
increasing financing needs and decreasing available resources, international 
development cooperation can play a major counter-cyclical role. 

ODA also helps catalyse private finance to fill the SDG funding gap.

Mobilisation of finance for climate mitigation and adaptation in developing countries 
is essential to address the multiple negative consequences of climate change for 
populations.

E
C
N
A
T
R
O
P
M

I

The Global Gateway strategy is a plan 
for major investment in infrastructure 
development around the world 
underpinned by a value-driven 
approach and aiming to mobilise
additional finance for sustainable, 
transparent and high-quality projects 
fully aligned with the SDGs and the 
Paris Agreement.

The EU and its Member States have 
shown strong leadership in pushing for 
a global green, inclusive and resilient 
recovery, substantially increasing 
support for biodiversity, disaster risk 
reduction and human development 
among others. 

The 2020 target of spending at least 
20% of the EU budget on climate 
finance has been met by far.

The EU is now committed to reaching 
a target of 30% for climate finance, 
with an additional EUR 4 billion for 
climate finance for partner countries by 
2027.

The EU and its Member States are by 
far the largest provider of ODA in both 
relative and absolute terms, 
representing EUR 70.2 billion, i.e. 
0.49% of collective gross national 
income, in 2021.

The EU and its Member States, in a 
Team Europe approach, impressively 
mobilised EUR 46 billion by April 2021 
to provide additional fiscal space and 
better respond to the COVID-19 crisis.

Because public resources are not 
enough to reach the SDGs, the EU 
and its Member States use ODA to 
leverage private capital, notably 
through blending or guarantees.

Innovative finance mechanisms 
mobilised close to EUR 10 billion of 
additional financial resources in 2020.

42

Chapter 4  

International Development  

Cooperation

This chapter analyses the Addis Agenda commitments of the EU and its Member States 
related to official development assistance (ODA). The chapter opens with the levels and 
quality of EU ODA before moving to the sustainable private investment catalysed by ODA. 
The chapter concludes with a thematic analysis of ODA for climate finance, environment, 
biodiversity, resilience and human development.

Official development assistance

Official development assistance (ODA) is still a major source of SDG funding for low- and 
middle-income countries, especially in the context of the COVID-19 pandemic. ODA can 
catalyse private investment, both domestic and foreign, as anticipated in the previous chapter, 
and draw on innovative sources beyond government budgets.  

Objectives

The  objectives  of  the  EU  and  its  Member 
States are to:

• 

• 

• 

achieve the target ratio of 0.7% ODA/
GNI by 2030; 
collectively give to least developed 
countries ODA amounting to between 
0.15 and 0.20% of the EU’s GNI in 
the short term, and at least 0.20% by 
2030; and
reverse the decline in the proportion of 
EU ODA going to the least developed 
countries (LDCs).

Most Relevant SDG Goals and 
Targets 

17.2:  Developed  countries  to  implement 
fully their official development assistance 
commitments,  including  the  commitment 
by  many  developed  countries  to  achieve 
the target of 0.7% of gross national income 
to ODA for developing countries and 0.15 
to 0.20% of ODA/GNI to least developed 
countries; ODA providers are encouraged 
to  consider  setting  a  target  to  provide  at 
least 0.20% of ODA/GNI to least developed 
countries. 

Team Europe reacted 

Implementation

swiftly to counter the 

impact of COVID-19  

and mobilised EUR 

46 billion  to support 

130 partner countries 

in responding 

to the crisis.

The EU and its Member States reacted swiftly to counter the impact of COVID-19 on their 
partner developing countries. Renewed commitments were made as Team Europe, both 
in the Joint Communication on the Global EU Response to COVID-1968 and in the Council 
Conclusions on Team Europe’s Global Response to COVID-1969. To provide much-needed 
additional fiscal space, Team Europe mobilised EUR 46 billion by April 2021 to better respond 
to the crisis. This amount included additional new funding, as well as ongoing funding that 
was adjusted to tackle the impacts of the COVID-19 pandemic. 

This support helped foster partner countries’ resilience, allowing them to focus on reforms in 
various sectors and preventing further economic and social setbacks. Indeed, budget support 
and complementary assistance have played a major role in the EU’s global response to the 

68. Joint Communication to the European Parliament, the Council, the European Economic and Social 
Committee and the Committee of the Regions, Communication on the Global EU response to COVID-19. 
JOIN(2020), 11 final, 8 April 2020.

69. Outcome of Proceedings from the General Secretariat of the Council, Brussels, 8 June 2020 and 23 April 2021.

43

The EU and its 

Member States are 

by far the largest 

provider of ODA.

pandemic, enabling it to react quickly, coordinate with partners and maintain a strong policy 
dialogue – even in times of lockdown. It has helped countries take measures in public health, 
social protection and tax policy to mitigate the impact of the pandemic on the poorest and the 
most vulnerable. The EU and its Member States have been a major contributor to the global 
distribution of vaccines through COVAX and provided close to EUR 3.5 billion to the COVAX 
initiative since the start of the pandemic, resulting in 250 million vaccines being distributed 
to low- and middle-income countries. 

Achieving the collective target ratio of 0.7% ODA/GNI by 2030

The EU and its Member States are by far the largest provider of ODA. In 2020, Team Europe 
ODA increased to EUR 66.8 billion – equivalent to 0.5% of collective gross national income 
(GNI)70. The ODA/GNI ratio of the EU and its Member States has remained about twice 
as high as the aggregate of all non-EU members of the OECD’s Development Assistance 
Committee (DAC)71. Figure 4.1 shows that the EU and its Member States provided 46.2% of 
global ODA for developing countries from the EU and all non-EU DAC donors in 2020. Annex 
3 provides ODA charts for all EU members.

Figure 4.1 – Official development assistance from the EU and its Member States and other 
DAC donor countries.
Preliminary OECD figures for 2020.

Source: OECD, April 2021.

The European Consensus on Development reaffirms the EU’s collective commitment to 
provide 0.7% of its GNI as ODA within the timeframe of the 2030 Agenda. Four Member States 
(Denmark, Germany, Luxembourg, and Sweden) have enshrined the 0.7% target in legislation 
or in their government’s multi-year programme. In 2020, they provided 0.7% or more of their GNI 
in ODA: Sweden (1.14%), Luxembourg (1.02%), Denmark (0.73%) and Germany (0.73%).

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

4.1 Official support 
and development 
assistance

2030

Effort and Progress  
Consistent effort 7 Insuficient progress u

Achieve collectively the target of 0.7% ODA/
GNI by 2030.

7 u

Figure 4 in Annex 3 shows the distribution of ODA from the EU and its Member States by SDG 
target and income group, comprising over 60% of all commitments over the period 2018-2019. 
As the figure shows, ODA from the EU and its Member States is addressing SDGs in areas 
where low-income and lower middle-income countries face the most significant challenges and 
where there has been little progress over time. The figure also demonstrates that the EU and 

70.  Press release: Team Europe increased Official Development Assistance to €66.8 billion as the 

world’s leading donor in 2020 | International Partnerships (europa.eu).

71.  OECD/DAC. Non-EU DAC donors include the United States of America, Japan, Canada, Norway, 

Switzerland, Australia, Korea, New Zealand, Iceland and, as of the reporting on year 2020, the United 
Kingdom.

44

 
its 27 Member States increased their ODA/GNI to 0.5% in 2020, marking a turn in the previous 
trend of declining ODA since the peak in 2016. This turn is due partly to an absolute increase 
in collective ODA in nominal terms (also dedicated to the response to the consequences of the 
COVID-19 pandemic), and partly to an absolute decrease in collective GNI in nominal terms. 

Achieving the targets for ODA to LDCs 

While the EU is committed to giving collectively between 0.15% and 0.20% of EU GNI to 
LDCs in the short term and 0.20% by 2030, the amount of ODA going to LDCs as a share of 
GNI remained below the short-term target of 0.15% (EUR 13.8 billion) in 2019, as shown in 
Figure 4.2. Having said that, the trend has been positive overall since 2015, with the LDC 
share of ODA/GNI growing from 0.09% to 0.10%, and the proportion of the EU’s ODA going 
to LDCs rising from 19.95% in 2016 to 24% by 2019 – still far from the 2010 peak. The efforts 
of the EU and its Member States to reverse the decline in the share of ODA to LDCs have 
been consistent. The target of increasing the share of EU ODA allocated to the LDCs has 
seen corresponding progress, accompanied by policy changes that are conducive to further 
increases over time. For example, NDICI – Global Europe instrument should contribute to the 
collective LDC target and gives priority to countries most in need in the resource allocation 
process and special attention is given to LDCs under the EFSD+. Belgium has redrawn its 
list of priority countries to include more LDCs. France has committed to increasing its ODA/
GNI ratio to 0.55% in 2022 and LDCs will be the main beneficiaries of this additional effort. 
Hungary’s new Development Cooperation Strategy places greater emphasis on promoting 
development  cooperation  with  LDCs.  Data  on  ODA  to  LDCs, Africa  and  other  specific 
recipients for 2020 are expected by April 2022.

Figure 4.2 – Indicators of ODA provided to LDCs by the EU and Member States, 2010-2019

Source: OECD/DAC Table 2A (excluding UK).

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

International 
development 
cooperation

International 
development 
cooperation

4.1 Official support 
and development 
assistance

4.1 Official support 
and development 
assistance

4.1 Official support 
and development 
assistance

2020

2030

Provide to the least-developed countries 
(LDCs) between 0.15 and 0.20% of collecti-
ve ODA/GNI in the short term. 

8 y

Provide at least 0.20% of collective ODA/
GNI to the LDCs by 2030.

8 y

2015-2030

Reverse the decline in the share of ODA 
going to LDCs.

7 u

Effort and Progress  

Hardly any effort 8 Little or no progress  y 

Consistent effort 7 Commitments met    u

45

Indicator2010201120122013201420152016201720182019ODA toLDCs/GNIShare ofTotal ODAVolume(2010=100)0.00%0.05%0.10%0.00%10.00%20.00%30.00%0.00%50.00%100.00%0.13%0.12%0.10%0.10%0.09%0.09%0.09%0.10%0.11%0.10%31.83%24.37%25.47%24.76%26.72%19.95%27.95%21.13%29.55%21.98%100.00%90.85%85.77%78.33%77.91%90.20%70.54%96.16%74.69%74.46%ODA to LDCs/GNIShare of Total ODAVolume (2010=100)Development effectiveness, joint programming  
and joint implementation

Objectives

The Addis Agenda reiterated commitments to 
improving the effectiveness of development 
cooperation, including adherence to agreed 
development cooperation effectiveness princi-
ples72. International development cooperation 
also needs to be more predictable, forward 
looking, and transparent. Development ac-
tors should decrease transaction costs while 
increasing knowledge sharing among them-
selves and with partners.

Most Relevant SDG Goals  
and Targets 

17.15:  Respect  each  country’s  policy 
space  and  leadership  to  establish  and 
implement policies for poverty eradication 
and sustainable development.

17.16: Enhance the Global Partnership for 
Sustainable Development, complemented by 
multi-stakeholder partnerships that mobilise 
and share knowledge, expertise, technology, 
and  financial  resources,  to  support  the 
achievement of the Sustainable Development 
Goals in all countries, in particular developing 
countries.

The European Union and its Member States 
have  further  affirmed  their  commitment  to 
working better together to ensure greater 
coordination  and  coherence  and  to  better 
contribute to the implementation of the 2030 
Agenda. Commitments were renewed as part of the new Team Europe approach in the Joint 
Communication on the Global EU Response to COVID-1973, in the Council Conclusions on Team 
Europe Global Response to COVID-1974 and in the Council Conclusions on Team Europe75. 

In addition, after the Wise Persons Group report (Wieser et al., 2019) on the future of the 
European financial architecture for development and the subsequent feasibility study76, 
the Council adopted conclusions77 on enhancing the European financial architecture for 
development. The conclusions stress the urgent need to increase development impact in 
partner countries and to address the development challenges aggravated by the COVID-19 
pandemic and invite the Commission to present a roadmap for improvement of the current 
architecture. The Commission roadmap78 focuses on actions in 4 areas: i) affirming a strong 
EU policy steer, ii) promoting enhanced coordination, iii) building a more inclusive financial 
architecture and iv) ensuring increased visibility and influence for EU and Member States 
actions in a Team Europe approach.

Implementation

The EU is a key 

Development effectiveness

supporter of the 

international agenda 

on development 

The EU is a key supporter of the international agenda on development cooperation effectiveness 
through, for example, its engagement in the Global Partnership for Effective Development 
Cooperation (GPEDC) and the support it gives to the OECD DAC. 

cooperation 

effectiveness.

The GPEDC monitors progress on implementation through a biennial and voluntary monitoring 
exercise. The use of country-defined priorities and development results is a fundamental 
aspect of country ownership, a theme developed in Box 4.1. According to the 2019 GPEDC 

72.  United Nations (2015), Addis Ababa Action Agenda of the Third International Conference on Financing 

for Development, A/RES /69/313. Article 58.

73.  Joint Communication to the European Parliament, the Council, the European Economic and Social 
Committee and the Committee of the Regions Communication on the Global EU response to COVID-19, JOIN 
(2020) 11 final.

74.  Council conclusions on Team Europe Global Response to COVID-19, Brussels, 8 June 2020. 

75.  Council conclusions on Team Europe, Brussels, 23 April 2021. 

76.  Feasibility study on options for strengthening the future European Financial Architecture for Development 

- Executive Summary, 14/04/2021, GSC(2021) 6961/1/21 REV 1

77.  Council conclusions on enhancing the European financial architecture for development, Brussels, 

10 June 2021 (OR. en); 9462/1/21 REV 1.

78.  Report from the Commission to the Council, Commission’s roadmap for an improved European financial 

architecture for development and 2021 progress report, 24.3.2022, COM(2022) 139 final. 

46

The EU and MS have 

been supporting 

partner countries 

in developing 

comprehensive 

strategies to their 

financing needs.

monitoring report (European Commission, 2020a), the EU decreased its use of country-owned 
results frameworks and planning tools between 2016 and 2018, although the EU as a whole 
still performed better than other DAC as well as non-DAC bilateral development partners. The 
2019 GPEDC monitoring report analysed almost 1,800 projects in over 70 partner countries 
to gauge of the performance of the EU as a whole. The sample was equivalent to just over 
half of the full GPEDC data set.

Ownership of development priorities by the partner countries is essential for development 
effectiveness. In 2020, EU delegations in 49 out of 114 countries reported that adherence to 
effectiveness principles had been a regular agenda item in donor-government co-ordination 
meetings79. 

On using partner-country public financial management systems, there has been a marginal 
overall decline in the EU, while DAC members improved (from 47% to 55% between 2016 
and 2018). The EU decline is attributable to the drop in the use of partner-country systems 
in financial reporting. The EU has remained steady in terms of using partner-country audit 
and procurement systems, while also maintaining its performance on getting aid into partner 
country budgets. The EU and its Member States80 increased the level of untied aid from 82% 
of all bilateral commitments in 2015 to 92% in 2019, well above the average for other DAC 
members (76%). Ten Member States81 consistently scored above 95% on untied aid, with 
Ireland and the Netherlands reaching 100% by 2015 and 2019, respectively. Also, when looking 
at bilateral ODA to LDCs and non-LDC Heavily Indebted Poor Countries as covered by the 
untying recommendation, the average score for EU and its Member States over the period 
2014-2018 was 96%, well above the rest of DAC (81%).

Eleven Member States82 reported making specific efforts to deliver on the Busan commitment 
to make partnerships more inclusive by encouraging triangular and South-South cooperation. 

Box 4.1 – EU support for integrated national financing frameworks

Countries are increasingly seeking to steer their own development by having more influence on 
the financing of their development objectives. Integrated national financing frameworks (INFFs) 
are country-led approaches that enable governments to strengthen planning processes and 
overcome impediments to financing their sustainable development. INFFs lay out the full range 
of financing sources – domestic and international sources of both public and private finance – 
and allow countries to develop a strategy to increase investment, manage risks and focus on 
the priorities identified in their national sustainable development strategy. 

Since 2019, the EU has been playing a leading role in building an INFF multilateral initiative together 
with UN partners and the International Monetary Fund. INFFs are now recognised as a key tool in 
the recovery from the pandemic and have been endorsed by the G20 Development Working Group. 

With support from the EU and under the auspices of the Inter-agency Task Force on Financing 
for Development, UN DESA has been developing the methodology of INFFs. Task Force 
members include the IMF, UNDP and the World Bank. The methodology has four building 
blocks: 1)  diagnostics and assessment, 2)  financing strategy, 3)  monitoring and review, and 
4) governance and coordination. 

The European Union financed the UN’s INFF.org, a knowledge management platform for INFFs. 
Developed in partnership with the UN, INFF.org is a digital space where countries can obtain 
the information they need to implement INFFs, connect with other INFF stakeholders, and bring 
together new knowledge and experiences with INFFs around the globe. 

Countries are showing strong demand for multilateral support on SDG financing and INFFs 
in particular. At the country level, the UN (under the political leadership of the UN Resident 
Coordinator and the technical leadership of the UN Development Programme), the EU and other 

79. External Assistance Management Report 2020.

80. OECD/DAC (2020), 2020 Report on the DAC Untying Recommendation, DCD/DAC(2020)54/FINAL.

81. Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, and Sweden.

82.  Austria,  Czech  Republic,  Germany,  Spain,  France,  Hungary,  Lithuania,  Luxembourg,  Malta,  the 

Netherlands, and Portugal.

47

multilaterals have committed to supporting INFF processes in 16 pioneer countries (Bangladesh, 
Burkina Faso, Cabo Verde, Colombia, Ghana, Indonesia, Ivory Coast, Kenya, Kyrgyzstan, 
Namibia, Nigeria, Rwanda, Senegal, Timor Leste, Uganda and Vietnam).

Some  EU  Member  States  are  also  supporting  INFF-pilots  in  their  partner  countries  (e.g. 
Germany in Namibia and Senegal). Moreover, the Joint SDG Fund – to which the EU and 8 
EU Member States (Denmark, Germany, Ireland, Luxemburg, the Netherlands, Portugal, Spain 
and Sweden) contribute – is now financing INFF processes in 62 countries, bringing the total 
number of countries developing INFFs to more than 70. UNDP, UN DESA, the OECD, the EU, 
Italy and Sweden came together in 2021 to establish an INFF technical assistance facility. The 
overall aim of the facility is to support country-led INFFs that mobilise and align financing with 
national sustainable development priorities, promote financing innovations and build integration 
across government and wider constituencies at the national level.

Joint programming

Joint programming is a strategic engagement process by the EU and its Member States, 
acting as Team Europe, together with other European development actors. The process 
begins with a joint analysis of the challenges and opportunities in a partner country and then 
develops a joint response at the country level. There is strong evidence of the importance 
of  joint  programming  in  development  cooperation.  It  encourages  ownership  by  aligning 
cooperation resources with the development plans of each partner country and its financing 
strategy for the SDGs. It strengthens the complementarity and efficiency of the external 
assistance development policies of the EU and its Member States. 

At the policy level, the EU has significantly strengthened its commitments on joint programming. 
In May 2016, the Council adopted conclusions on stepping up joint programming83 as part 
of an ongoing effort to increase the impact of the EU’s development and neighbourhood 
policies. In the same year, the Global Strategy for the EU’s Foreign and Security Policy 
identified joint programming as contributing to greater integration of the Union’s external 
policies and between the Union and its Member States. 

Joint  programming  delivers  on  commitments  towards  the Addis Agenda  objectives  of 
improving predictability and forward planning, increasing transparency, reducing transaction 
costs and improving knowledge sharing. An independent evaluation of joint programming 
published in March 2017 concluded that it helps improve alignment, reduce fragmentation 
and enable mutual accountability84. The evaluation recognised the value of joint programming 
in grouping sectors and breaking boundaries by bringing different actors together. By the 
end of 2020, the EU and its Member States had 22 joint programming documents in place.

The newly adopted NDICI – Global Europe specifies that joint programming is the preferred 
approach for country programming for the period of the instrument (2021-2027) and that, where 
possible and appropriate, a joint programming document shall replace the Union’s and Member 
States’ programming documents to increase the impact of collective cooperation of the Union.

The EU and its Member States are also engaged in  joint implementation. The EU and 
12 Member States85 have procedures in place to contribute to a better division of labour 
by collectively reducing fragmentation and sharing the coordinating workload at the sector 
level or by policy area. The EU applied the practice to three sectors during the programming 
period 2014-2020. 

In this regard, an important innovation came as the COVID-19 crisis was putting the EU’s external 
action to test. The magnitude of the crisis needed the combined efforts, resources and expertise 
of all European actors. The EU championed the Team Europe approach, which allowed a joint 
offer to be made to Europe’s partner countries, combining humanitarian aid; supporting the 
health, water and sanitation systems; and addressing the pandemic’s socio-economic fallout. 

83. Council conclusions on Stepping up Joint Programming, Brussels, 12 May 2016, Council Conclusions, 8331/16.

84. European Commission (2017), Evaluation of EU Joint Programming Process of Development Cooperation 

(2011-2015).

85. Austria, Belgium, the Czech Republic, Germany, Spain, Finland, Italy, Luxembourg, Poland, Portugal, 

Sloveni., and Sweden.

48

In a changing 

geopolitical context, 

the Team Europe 

configuration 

establishes EU 

leadership on the 

global stage, protects 

common interests, 

promotes EU values 

and enhances the 

visibility of EU 

interventions.

The Team Europe response to the crisis demonstrated the scale and visibility that can be 
achieved when working together86. In the preparatory stages of the 2020 EU programming 
exercise,  the Team  Europe  approach  was  established  as  a  guiding  principle  for  how 
programming strategies were formulated, and the novel idea of Team Europe Initiatives – 
large transformational projects commonly designed, funded and implemented by the EU 
and its Member States – became an integral part of Europe’s efforts to ‘build back better 
and greener’.

In a changing geopolitical context, the Team Europe configuration establishes EU leadership on 
the global stage, protects common interests, promotes EU values and enhances the visibility 
of EU interventions. The joint approach also emphasises the need for coordinated action 
by the EU institutions and Member States, particularly with respect to achieving the SDGs. 
Combining the resources of the EU, its Member States, and their bilateral financial institutions 
and development banks, plus the EIB and EBRD, maximises transformative impact in partner 
countries. The Team Europe approach is at the heart of the Commission’s plan to ensure that 
the European financial architecture for development is effective, efficient and visible87. 

Building on this strong collaboration, the EU and its Member States, are now committing 
to  making Team  Europe  a  permanent  feature  of  their  external  actions  in  international 
partnerships and cooperation, using the occasion of the start of the new EU programming 
cycle 2021-2027. Programming at the country and regional level, whether joint or bilateral, 
is increasingly focused on supporting Team Europe Initiatives (TEIs). TEIs link the EU and 
Member States’ programming and financial contributions through a coordinated approach 
in-country, offering a unique opportunity to prove the potential of a more EU coordinated 
and strategic approach. In joint programming, the EU and Member States agree on a joint 
response from the EU and its Member States to the development strategy of the partner 
country or region, providing an immediate opportunity to increase coordination, efficiency 
and impact. TEIs are fully embedded in the EU programming documents, with a substantial 
share of the multi-annual budgets dedicated to them. 

Despite  consistent  effort  the  EU  and  its  Member  States  have  shown  disappointing 
performance on development effectiveness, with declining GPEDC ratings on 1) short-term 
predictability; 2) use of indicators drawn from partner country-owned results frameworks 
or of their public finance management systems; 3) involvement of partner governments 
in  project  evaluations;  and  4) transparency. At  the  same  time,  there  have  been  strong 
efforts  and  progress  on  mid-term  predictability,  joint  programming  and  untied  aid.  In 
particular, at the policy level, the EU has significantly strengthened its capacity to implement 
commitments on joint programming. At the same time, there is a strong drive to expand the 
use of joint monitoring and results frameworks, which can be found in 12 joint programming 
documents. The Team Europe approach will become the EU’s way forward at country and 
regional level; Team Europe Initiatives are being developed in partner countries to be more 
efficient, impactful and visible. 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

4.2 Development 
effectiveness

2015-2030

Improve ownership, focus on results, pre-
dictability, forward planning, transparency, 
reducing transaction costs and knowledge 
sharing.

7 u

Effort and Progress  
Consistent effort 7 Insufficient progress u

86. Joint Communication to the European Parliament, the Council, the European Economic and Social 
Committee and the Committee of the Regions Communication on the Global EU response to COVID-19, JOIN 
(2020) 11 final.

87. Council conclusions on enhancing the European financial architecture for development, Brussels, 10 

June 2021 (OR. en); 9462/1/21 REV 1.

49

ODA as catalyst: Innovative sources of finance  
and financial instruments

Objectives

The  objectives  of  the  EU  and  its  Member 
States in this area are:

a) 

to  set  up  innovative  finance  facilities 
aimed at supporting investments in partner 
countries  (including  in  infrastructure, 
clean technology and energy) that create 
market dynamics favourable to mobilising 
private investment at scale; and

Most Relevant SDG Goals  
and Targets 

17.3: Mobilise additional financial resources 
for developing countries from multiple sources.

17.17: Encourage and promote effective public, 
public-private and civil society partnerships, 
building on the experience and resourcing 
strategies of partnerships.

b) 

to put in place innovative financing mechanisms, instruments and modalities that do 
not burden developing countries. These include special purpose facilities and funding 
schemes that raise funds from other sources (debt swaps, bonds, special taxes).

Implementation

Blending and guarantees

Public resources will not be enough to reach the SDGs. As a result, the EU and its Member 
States are going beyond the more traditional aid channels and using official development 
assistance  (ODA)  in  ways  that  help  generate  additional  sources  of  finance,  notably  by 
crowding in private capital. Working in partnership with financial institutions and relying 
increasingly on innovative financial instruments, they are using public funds to leverage 
investments, for example through blending or guarantees. 

The EU’s External Investment Plan, adopted in 2017, and its European Fund for Sustainable 
Development (EFSD)88 attract public and private investments to the EU’s partner countries. 
The Plan follows an integrated approach based on three complementary pillars: private 
investment mobilisation (notably through the EFSD), technical assistance and investment 
climate  improvements.  In  2020,  the  External  Investment  Plan  was  refocussed  to  help 
countries respond to the COVID-19 pandemic by providing support for small business and 
healthcare.

The EU provides support through its blending operations89. Seven programmes cover 
all regions of EU external cooperation and mobilise investments in infrastructure and the 
private sector in developing countries. Between 2017 and 2020, blending operations under 
the EIP in Sub-Saharan Africa and the Neighbourhood resulted in a total of EUR 36.5 billion 
in expected investment, of which EUR 3.8 billion came from EU contributions. 

The EFSD Guarantee supports investments and increased access to financing, primarily in 
Africa and the Neighbourhood by sharing risks with private investors and helping to leverage 
additional resources where they are most needed, e.g. for refugees or women entrepreneurs. 
The Guarantee serves as a risk-mitigation mechanism to leverage public and private sector 
financing while avoiding market distortions (see Figure 4.3). It spreads the risks (such as 
commercial risks, political and country risks, currency risks, climate change and environmental 
risks) involved in lending and investing so that development banks and private investors 
feel confident enough to lend to local entrepreneurs or finance development projects. In the 
process, the EFSD Guarantee contributes to job creation and boosts economies.

As  of  31  December  2020,  the  Commission  had  exhausted  the  capacity  of  the  EFSD 
Guarantee after signing 18 guarantee agreements worth EUR 1.55 billion with 10 partner 
institutions. Individual guarantee agreements focus on the following five key sectors: small 

88. Regulation (EU) 2017/1601 of the European Parliament and of the Council of 26 September 2017 
establishing the European Fund for Sustainable Development (EFSD), the EFSD Guarantee and the EFSD 
Guarantee Fund; OJ L 249, 27.9.2017, p. 1–16.

89. ‘Blending’ means combining EU grants with loans or equity from public and private financiers.

50

businesses and sustainable agriculture, sustainable energy and connectivity, financing for 
MSMEs, digitalisation, and sustainable cities. EUR 17.5 billion is expected to be leveraged 
in overall investment. 

NDICI – Global Europe’s financial arm has been reinforced, providing more firepower for 
financial instruments like the External Action Guarantee, which will cover investments up 
to EUR 53.4 billion,  including EUR  40 billion in EFSD+  operations  for  the period 2021-
2027, notably to help mobilise additional public and private investment90. 

Figure 4.3 – Amounts mobilised from the private sector by the EU and its Member States 
Commitments, EUR million, 2019 prices 

With the Global 

Gateway strategy, the 

EU has set up a plan 

for major investment 

in sustainable 

infrastructure to 

ensure a green, 

digital, just and 

resilient recovery 

through projects 

that are sustainable 

and of high quality.

In line with the new geopolitical ambition and commitment to the 2030 Agenda, the European 
Commission announced its new development strategy, the Global Gateway91 in 2021. This 
plan for major investment in infrastructure development around the world is underpinned by 
a value-driven approach and is fully aligned with the UN’s Agenda 2030 and the SDGs, as 
well as the Paris Agreement. It promotes sustainable and trusted connections that tackle 
the most pressing global challenges, from climate change and environmental protection to 
strengthening digitalisation, improving health security, boosting EU competitiveness and 
securing global supply chains. Global Gateway intens to mobilise up to EUR 300 billion in 
investments between 2021 and 2027 using the potential of the EU and Member States to 
anchor a lasting global recovery. It will generate sustainable, high-quality projects implemented 
transparently and in accordance with rigorous standards so as to deliver lasting social and 
economic benefits for local communities.

90. For further details see: https://ec.europa.eu/international-partnerships/news/eu-external-action-budget-

2021-2027-final-adoption_en

91.  Joint Communication to the European Parliament, the Council, the European Economic and Social 

Committee, the Committee of the Regions and the EIB - The Global Gateway, 01/12/2021, JOIN(2021) 30 final.

51

201220132014201520162017201820190K2K4KMinimum4,6921,288Amounts mobilised from the private sector by Team Europe(2012-2019, EUR millions, 2019 prices)Collective investm..Credit linesDirect investmentGuaranteesSimple co-financingSyndicated loansFranceGermanyDenmarkNetherlandsSwedenFinlandSpainAustriaBelgiumPortugalLuxembourgIrelandCzech RepublicSlovak RepublicSlovenia10,5364,2663,4863,4251,620685360264225195197400Amounts mobilised from the private sector by Member State(2012-2019, EUR millions, 2019 prices)Collective investment vehicles18%Syndicated loans12%Simple co-financing3%Direct investment21%Guarantees15%Credit lines30%Amounts mobilised from the private sector by Team Europe by Instrument(2012-2019, % of total)Source: OECD DAC - DCR Provider Profiles 2020-21Credit linesDirect investmentGuaranteesSimple co-financingSyndicated loansCollective investmentEU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 

development 

cooperation

4.3.ODA as a 

catalyst

2015-2030

facilities aimed at supporting investments in 

partner countries, including in infrastructure, 

7 u

Contribute to the set-up of innovative finance 

clean technology and energy.

Effort and Progress  
Consistent effort 7 Commitments likely to be met u

Other innovative financing mechanisms, instruments and modalities

The EU and its 

Member States 

mobilised close to 

EUR 10 billion of 

additional financial 

resources in 2020 

thanks to innovative 

finance mechanisms.

The EU and its Member States have made strong efforts to meet the target of mobilising 
additional financial resources for developing countries from multiple sources. Moreover, the 
EU and its Member States have striven to establish innovative finance facilities to support 
investments in partner countries and to implement innovative mechanisms, instruments and 
modalities of finance that do not burden developing countries. 

As  reported  by  the  EU  and  its  Member  States  in  this  year’s  questionnaire,  innovative 
finance mechanisms mobilised close to EUR 10 billion of additional financial resources in 
2020, almost 9 times the amount generated in 2019 and close to 15% of EU ODA in 2020, 
a significant share. About 60% of the total was raised through issuances of green, social or 
sustainable (GSS) bonds, another 30% through pledges to the International Finance Facility 
for Immunisation, with taxes on air travel and financial transactions accounting for most of 
the remaining balance.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

International 
development 
cooperation

4.3.ODA as a 
catalyst

2015-2030

Implement innovative finance mechanisms, 
instruments and modalities which do not 
burden developing countries.

7 u

4.3.ODA as a 
catalyst

2015-2030

Mobilise additional financial resources for 

developing countries from multiple sources. 7 u

Effort and Progress  

Consistent effort 7 Commitments likely to be met u 

Very strong effort 7 Commitments met u

What’s more, important progress has been achieved on developing and reporting on Total 
Official Support for Sustainable Development (TOSSD) which aims to measure all resources 
for the SDGs, beyond the flows captured in ODA, including resources mobilised from the 
private sector. For further details, please see chapter 9.

Climate finance and the environment

COVID-19 has aggravated concerns about climate change and led to calls for greater public 
support for greener recovery packages, as documented in a recent IMF study (Mohommad 
and Pugacheva, 2022) using data from a unique survey of 14,500 individuals across 16 major 
economies. Another study finds that the G7, G20 and BRICS are indeed ‘building back better’ 
with greener packages to recover from COVID-19 (Johnstone, 2022).

52

Climate finance

Objectives

Objectives in this area are to:

a)  contribute  significantly  to  joint 
mobilisation  of  USD 100  billion 
annually from 2020 to 2025, and

b)  continue  scaling  up  the  global 
mobilisation of climate finance, in 
particular  by providing balanced 
support for climate mitigation and 
adaptation in developing countries.

Implementation

Most Relevant SDG Goals  
and Targets 

13.a: Implement the commitment undertaken 
by  developed-country  parties  to  the  United 
Nations  Framework  Convention  on  Climate 
Change  to  a  goal  of  mobilising  jointly  USD 
100 billion annually by 2020 from all sources 
to address the needs of developing countries 
in the context of meaningful mitigation actions 
and transparency on implementation and fully 
operationalise the Green Climate Fund through 
its capitalisation as soon as possible.

Mobilising  climate  finance  is  a  key  objective  for  the  EU  and  its  Member  States.  It  has 
been embedded in key strategic documents and legislation, notably in the framework for 
development cooperation (Box 4.2). 

The European Commission and nine Member States92 have set a minimum for spending on 
climate-related objectives.

Box 4.2 – EU budget targets for climate finance

EUR 216 billion of the EU budget was dedicated to the fight against climate change over the 
multiannual financial framework period from 2014 to 2020, an annual average of 20.15% of 
the budget a. This exceeded the target of spending at least 20% of the EU budget on climate 
action by 2020 b Under the Development Cooperation Instrument, 25.7% of annual commitments 
were climate-change-related.

The EU’s ambition with respect to climate finance will be scaled up further in the years to come. 
The new multiannual financial framework, approved in December 2020, sets an overall climate 
target of 30% of total expenditure for the EU budget 2021-2027. Climate change is one of the 
priority areas for external cooperation underlined in the new NDICI – Global Europe, which 
also includes a 30% spending target. The EU’s commitment has been further strengthened by 
President von der Leyen’s announcement, in her State of the Union speech on 15 September 
2021, of an additional EUR 4  billion for climate finance over the period 2021-2027, which 
equates to a 35% spending target. It is thus expected that spending to support climate action 
in developing countries under the EU’s core budget should exceed EUR  28 billion over the 
2021-2027 period.

a. Draft budget 2022, Programme Statement for Operational Expenditures – Working Document I.
b. https://ec.europa.eu/clima/eu-action/funding-climate-action/supporting-climate-action-through-

eu-budget_en. 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 

development 

cooperation

4.4.1 Climate 

finance

2020

Spend at least 20% of the EU budget on 

climate action by 2020.

7 u

Effort and Progress  
Very strong effort 7 Commitments met u

92.  Austria, Belgium, Cyprus, Germany, Denmark, Finland, Italy, Portugal and Slovenia.

53

The EIB, EBRD and several development finance institutions have also set a minimum for 
spending on climate-related objectives (Box 4.3).

Box 4.3 – Examples of climate finance commitments by some European 
financial institutions

According to the EIB Group’s Climate Bank Roadmap 2021-2025, all EIB financing must be 
aligned with the Paris Agreement as of 1 January 2021. More than half of all financing will be 
dedicated to climate action and environmental sustainability beginning in 2025, and the EIB 
Group will support the mobilisation of EUR 1 trillion in green finance in the critical decade 
leading up to 2030. 

In 2020, the EBRD launched its new Green Economy Transition approach, which aimed to 
raise the bank’s share of climate investments to more than 50% of its lending by 2025. By 
November 2021, it had already reached that target. The approach calls for the EBRD to channel 
finance to sectors that require urgent and rapid decarbonisation, to enhance policy engagement 
and to help countries formulate and implement ambitious climate strategies aligned with the 
objectives of the Paris Agreement. The EBRD is planning to align all its activities with those 
objectives by end of 2022. 

In November 2020, the Association of European Development Finance Institutions announced 
that its 15 publicly owned member institutions would align all new financing decisions with the 
objectives of the Paris Agreement by 2022. They would immediately cease new coal or fuel 
oil financing, conclude all existing investments in fossil fuels by 2030 and ensure that their 
portfolios achieved net zero emissions by 2050. 

The EU and its Member States are committed to contributing to the collective goal of mobilising 
jointly USD 100 billion annually through to 2025 from a wide variety of sources.

Together, the EU and its Member States are the largest contributor of climate finance to 
developing countries. For 2019 the EU reported an amount of EUR 21.9 billion (USD 25 billion), 
representing 30.8% of total annual climate finance mobilised globally (Table 4.1). In 2020, total 
commitments by the EU and its Member States were almost EUR 23.39 billion (USD 27 billion), 
not counting private finance mobilised by public climate finance. Owing to new reporting and 
aggregation rules, the 2020 figure cannot be directly compared with figures from previous years.

Table 4.1 – Annual climate finance mobilised globally and by the EU and its Member States 

Annual climate finance

2015

2016

2017

2018

2019

2020 a

Total provided globally (USD billion)

N/A

58.6

71.2

78.3

79.6

N/A

Total provided by the EU (EUR billion)

17.6

20.2

20.4

21.7

21.9

23.4

European Commission

1.5

2.7

2.8

2.7

2.5

2.5

Member States

13.9

15.6

15.0

16.1

16.2

20.9

European Investment Bank

Share of EU over global (%)

2.2

N/A

1.9

2.6

2.9

3.2

38.1

32.4

31.1

30.8 b

N/A

Source: Council of the European Union. 
Source for total climate finance provided globally: OECD report, Climate Finance Provided and Mobilised by Developed 
Countries: Aggregate Trends Updated with 2019 Data, published on 17 September 2021; 
Source for EU figures: EU (CLIMA) answer to the Climate Finance questionnaire circulated by Canada and Sweden in 
August 2021, based on reporting under the EU’s Monitoring Mechanism Regulation.

a. Provisional estimate (not counting private finance mobilised by public climate finance).
b. Without the United Kingdom.

Together, the EU and 

its Member States are 

the largest contributor 

of climate finance to 

developing countries.

54

The EU and its 

Member States 

are committed to 

balancing climate 

finance towards 

climate adaptation. 

As regards future climate finance ambitions, the EU, its Member States and the EIB report 
their financial commitments under Article 9.5 of the Paris Agreement in the form of joint 
biennial communications. The first report, in December 2020, covered 2021 and 2022. It 
indicated that climate finance will remain at least constant for the EU and its Member States, 
while increasing for the EIB. The next submission is due to be transmitted by the end of 2022 
under the Czech Presidency of the EU.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 

development 

cooperation

4.4.1 Climate 

finance

Contribute to the collective goal of mobilising 

2020-2025

USD 100 billion annually by 2020 and throu-

gh to 2025 from a wide variety of sources.

7

Effort and Progress  
Consistent effort 7

The EU and its Member States are also committed to providing balanced support for climate 
mitigation and adaptation in developing countries.

Figure 4.4 shows that ODA grants from the EU and its Member States for climate activities in 
developing countries, part of the overall EU climate finance but covering only concessional 
finance from the public sector, have grown substantially, from EUR 3.1 billion in 2014 to a 
peak of EUR 6.6 billion in 2019.

Figure 4.4 – ODA grants for climate activities in developing countries, 2014 and 2019
Commitments, EUR million, 2019 prices

7.000

6.000

5.000

4.000

3.000

2.000

1.000

0

Both Climate Mitigation and Adaptation
Climate Mitigation
Climate Adaptation

2014
1.011
862
1.274

2015
1.553
1.205
1.932

2016
1.565
1.351
3.123

2017
2.119
1.312
2.644

2018
1.967
1.151
2.428

2019
1.733
1.321
3.525

Source: OECD/DAC Creditor Reporting System. 
Note: Includes only activities with climate markers equal to 1 or 2; excludes recipients that are either regional or 
unspecified.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

4.4.1 Climate 
finance

2015-2030

Provide balanced support for 
climate mitigation and adaptation 
in developing countries

6 u

Effort and Progress  

Minimal effort 6 Commitments likely to be met u

The EU and its Member States have been contributing to numerous initiatives on climate 
finance. A few examples can be found in Box 4.4.

55

Box 4.4 – Examples of support from the EU and its Member States for global 
and regional initiatives on climate finance

Ten EU development finance institutions and the EIB are shareholders of the Interact Climate 
Change Facility, which has provided nearly EUR 400 million since 2011 for renewable energy 
and energy efficiency projects in the private sector of developing countries and emerging 
economies. The Facility has helped reduce carbon emissions by almost two million tonnes 
per year and to install 1.1 megawatts of renewable energy capacity.

The Global Climate Change Alliance (GCCA+), an EU flagship initiative, is helping the 
world’s most vulnerable countries address their climate change challenges. It has funded more 
than 80 projects of national, regional and worldwide scope in Africa, Asia, the Caribbean and 
the Pacific, helping many small island developing states and some of the least developed 
countries increase their resilience to climate change. The EU GCCA+ also assists countries 
in these groups in meeting their commitments under the Paris Agreement on Climate Change.

As a group, EU Member States are the largest contributor to the Green Climate Fund. Their 
total commitments of USD 8.9 billion account for 50% of the total amount pledged. The Green 
Climate Fund, established in 2010, is the financial mechanism of the United Nations Framework 
Convention on Climate Change.

The Green for Growth Fund (GGF)93, an EU supported multi-donor public-private fund, fosters 
the reduction of energy consumption and CO2 emissions through the provision of finance 
to intermediate lending institutions that on-lend to micro and small enterprises and private 
households for energy-efficiency and renewable energy investments in the Enlargement and 
Neighborhood regions. Overall, since the fund’s inception in 2009, it has facilitated over EUR 
1.1 billion in subloans to over 40,000 end-borrowers. 

The efforts and progress of the EU and its Member States on climate action have been 
significant. The 2020 target of spending at least 20% of the EU budget on climate finance 
has been achieved. The EU and its Member States are the largest source of public climate 
finance for developing countries, accounting for nearly one-third of the global commitment 
to raise USD 100  billion annually. The EU and its Member States are also committed to 
balancing climate finance towards climate adaptation. 

Sustainable energy 

According to the World Bank’s World Development Indicators, the share of the population 
enjoying  access  to  electricity  in  low-  and  middle-income  countries  grew  from  82.7%  in 
2014 to 88.2% in 2019, and in LDCs from 39.2% to 52.8% over the same period94. Several 
countries are on track to reach the target of electricity for all by 2030. Despite widespread 
global progress on energy access, however, electrification is not keeping up with population 
growth in Sub-Saharan Africa. By 2030, 600 million of the 674 million people worldwide who 
lack access to electricity will live in Sub-Saharan Africa, most of them in rural areas. More 
than USD 30 billion – equivalent to EUR 25 billion – will be needed annually to ensure that 
no one is left behind.

93 

 GGF_Impact_Report_2020_web_compressed.pdf

94.  https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS. 

56

Objectives

Objectives in this area are interlinked: addressing 
the lack of energy access; increasing energy 
efficiency and renewable energy generation to 
achieve a sustainable balance between energy 
production and consumption; and contributing 
to  the  global  fight  against  climate  change  in 
line with the Paris Agreement and the related 
nationally  determined  contributions  of  the 
parties to the Agreement. 

Implementation

As shown in Table 4.2, the ODA commitments of 
the EU and its Member States for energy access 
(electric power transmission and distribution), 
efficiency (energy conservation and demand-
side efficiency and energy research) and balance 
(energy generation from renewable sources) 
increased by almost 50% between 2012 and 
2014 in real terms, from EUR 2.9 billion in 2012 
to EUR 4.6 billion in 2014; they have remained 
above EUR 4 billion since then. 

Most Relevant SDG Goals  
and Targets 

7.1: By 2030, ensure universal access to 
affordable, reliable and modern energy 
services

7.2: By 2030, increase substantially the 
share of renewable energy in the global 
energy mix

7.3: By 2030, double the global rate of 
improvement in energy efficiency

7.b: By 2030, expand infrastructure and 
upgrade technology for supplying modern 
and sustainable energy services for all 
in  developing  countries,  in  particular 
least developed countries, small island 
d e v e l o p i n g   S t a t e s   a n d   l a n d l o c k e d 
developing countries, in accordance with 
their respective programmes of support.

Table 4.2 – EU ODA for energy access, efficiency and balance 

Commitments, EUR millions, 2019 prices

ODA purpose

2012

2013

2014

2015

2016

2017

2018

2019

% 
ODA, 
all do-
nors

1,360

1,482

2,876

2,075

2,600

2,803

2,825

1,966

58

192

97

237

200

278

297

365

302

107

276

861

396

229

199

932

224

0

-

1

13

313

77

189

264

9

261

90

219

27

31

177

1

  Multiple technologies

1,061

1,096

1,375

1,184

1,877

2,012

1,341

1,179

1,530

1,236

1,715

1,936

1,964

1,114

1,194

1,244

35

-

5

-

2

-

6

24

289

345

397

932

74

1

12

7

2

3

Total

2,895

2,721

4,596

4,037

4,865

4,269

4,418

4,145

Largest EU contributors (%)

Germany

32%

47%

64%

41%

49%

42%

64%

42%

EU institutions  
and bodies

24%

31%

20%

22%

39%

26%

23%

26%

Source: OECD/DAC Creditor Reporting System.

57

Energy generation, 
renewable sources  
of which:

  Hydro

  Solar

  Wind

  Geothermal

Electric power 
transmission and 
distribution

Energy conservation 
and demand-side 
efficiency

Energy research

31

52

70

24

77

19

47

49

27

The EU and its Member States have provided a consistent level of funds for  sustainable 
energy  (EUR 4–5 billion  a  year  between  2014  and  2019),  while  its  partner  countries’ 
performance has been mixed, with energy efficiency improving and the share of renewables 
in total energy generation declining. While the effort was therefore consistent over time, more 
needs to be done to raise the share of renewables in the energy mix and to improve access 
to energy, in particular sustainable energy.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

4.4.2 Sustainable 
energy

2015-2030

Address the lack of energy access; increase 
energy efficiency and renewvable energy ge-
neration to achieve a sustainable balance be-
tween energy production and consumption..

7

Effort and Progress  
Consistent effort 7

Natural resources, biodiversity and ecosystems:   
conservation and sustainable management 

Objectives

T h e   m a i n   o b j e c t i v e   i n   t h i s   a r e a   i s   t o 
support  the  conservation  and  sustainable 
management and use of natural resources, as 
well as the conservation and sustainable use 
of biodiversity and ecosystems. The Strategic 
Plan for Biodiversity 2011-202095 and its Aichi 
Biodiversity Targets96, agreed in 2010, set the 
international policy framework for biodiversity 
conservation97. 

The EU Biodiversity Strategy to 202098 sought to 
align EU efforts to this international framework. 
In line with the Aichi Biodiversity Targets, the 
EU and its Member States together agreed to 
the commitment made in Hyderabad, India in 
2012, and confirmed in Pyeongchang, South 
Korea in 2014, to double total biodiversity-
related financial resource flows to developing 
countries by 2015 from the average level of 
annual  biodiversity  funding  for  the  years 
2006-2010  and  to  maintain  that  level  until 
2020. The Hyderabad Commitment99 was part 
of a package that also addressed domestic 
biodiversity financing from a variety of sources. 

Most Relevant SDG Goals  
and Targets 

15.9  By  2020,  integrate  ecosystem  and 
biodiversity values into national and local 
planning, development processes, poverty 
reduction strategies and accounts

15.a:  Mobilise  and  significantly  increase 
financial  resources  from  all  sources  to 
conserve and sustainably use biodiversity 
and ecosystems 

15.b: Mobilise significantly resources from 
all  sources  and  at  all  levels  to  finance 
sustainable forest management, and provide 
adequate incentives to developing countries 
to advance sustainable forest management, 
including for conservation and reforestation

15.c: Enhance global support for efforts to 
combat poaching and trafficking of protected 
species, including by increasing the capacity 
of local communities to pursue sustainable 
livelihood opportunities

95. CBD, COP Decision, Key Elements of the Strategic Plan 2011-2020.

96. The 20 Aichi Biodiversity Targets, adopted in 2010, articulate a 2050 vision of a world without loss of 

biodiversity or degradation of ecosystems.

97. This framework is currently being updated through the negotiations of the post-2020 global biodiversity 
framework, to be adopted in 2022 during the 15th Conference of the Parties to the UN Convention on Biological 
Diversity.

98. Communication from the Commission to the European Parliament, the Council, the Economic and 
Social Committee and the Committee of the Regions, Our life insurance, our natural capital: an EU biodiversity 
strategy to 2020. COM(2011) 244 final.

99. CBD Decision XII/3, paragraph 1a: ʻDouble total biodiversity-related international financial resource 
flows to developing countries, in particular least developed countries and small island developing states, as well 
as countries with economies in transition, using average annual biodiversity funding for the years 2006-2010 
as a baseline, by 2015, and at least maintain this level until 2020 (…)ʼ.

58

May 2020 saw the adoption of the EU Biodiversity Strategy for 2030 Bringing nature back 
into our lives100. The strategy proposes, inter alia, ambitious global goals for biodiversity 
for 2050, in line with the 2030 Agenda and the vision of ‘living in harmony with nature’. The 
ambition should be that, by 2050, all of the world’s ecosystems are restored, resilient and 
adequately protected. A much stronger implementation, monitoring and review process should 
also be put in place. 

Implementation

Policies. The FLEGT (Forest Law Enforcement, Governance and Trade) Action Plan is 
the EU’s policy to combat illegal logging and related trade101. With countries expressing their 
interest, the FLEGT Action Plan also envisages voluntary partnership agreements (VPA) to 
improve forest governance and ensure that timber and timber products exported to the EU 
come from legal sources. So far, seven countries have signed a VPA (Indonesia, Cameroon, 
Ghana, Liberia, Central African Republic, Republic of Congo) with the EU, making them ‘VPA 
partner countries’. Indonesia started issuing FLEGT licenses in 2016; to date, it is the only 
VPA partner country to do so.

ODA targets. The EU and its Member States support developing countries in implementing the 
Strategic Plan for Biodiversity 2011-2020 and its Aichi Biodiversity Targets. Various Member 
States have significantly increased biodiversity financing as well. 

Table 4.3 – Annual bilateral biodiversity-related ODA mobilised globally and by the EU-27  
and its Member States 

Annual bilateral  

biodiversity-related ODA

Total provided globally  

(2019 constant USD billion)

Total provided by the EU 

(2019 constant USD billion)

  European Commission

  Member States

2014

2015

2016

2017

2018

2019

2020 a

4,6

1,8

0,2

1,7

6,4 

2,8

0,4

2,5

5,0

2,9

0,4

2,4

5,7

4,0

0,9

3,1

4,7

3,4

1,0

2,4

4,2

2,9

0,7

2,2

N/A

N/A

N/A

N/A

Share of EU over global (%)

40%

44%

57%

69%

72%

69%

N/A

Source: OECD Dataset on Aid activities targeting Global Environmental Objectives (CRS), data extracted on 17th March 
2022: https://stats.oecd.org/Index.aspx?DataSetCode=RIOMARKERS# 
a. Data to be uploaded on OECD dataset.
NB: United Kingdom excluded from all years.

Increased resource mobilisation is paramount to successful COP-15 negotiations and the 
achievement of objectives of the Convention on Biological Diversity. In her State of the Union 
speech on 15 September 2021, the Commission President made a commitment to double 
EU external funding for biodiversity, in particular for the most vulnerable countries. This will 
concretely mean dedicating EUR 7 billion to support biodiversity-related action in partner 
countries under the EU’s budget over the 2021-2027 period.

Support for global and national initiatives on biodiversity. The European Commission, the 
EIB and 13 Member States102 have supported 131 initiatives to achieve the Aichi targets over 
the period 2018-2020. Several examples are presented in Box 4.5.

100. Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions, EU Biodiversity Strategy for 2030, COM(2020) 380 final.

101. Communication from the Commission to the Council and the European Parliament - Forest Law 

Enforcement, Governance and Trade (FLEGT) - Proposal for an EU Action Plan, COM/2003/0251 final.

102. Austria, Belgium, Czech Republic, Finland, France, Germany, Hungary, Ireland, Lithuania, Luxembourg, 

Slovenia, Spain, and Sweden.

59

Commission President 

announced in 

September 2021 

that the EU was 

increasing its efforts 

further by doubling 

external funding 

for biodiversity, 

especially for the most 

vulnerable countries.

Box 4.5 – Examples of support for biodiversity from the EU and its Member States 
through bilateral and multilateral channels

In addition to the EU’s Forest Law Enforcement, Governance and Trade Facility, the EU, 
France, Germany, Ireland, Spain and the Netherlands fund the EU Reducing Emissions from 
Deforestation and Forest Degradation (REDD) Facility, which supports countries in testing 
strategic and innovative solutions for designing, implementing and monitoring REDD+ strategies 
and monitoring the fulfilment of zero-deforestation commitments. The facility collaborates 
with a broad range of stakeholders in the public and private sectors, including civil society 
organisations, to contribute to subnational, national, EU and international policy-making.

The REDD concept emerged in 2005 as part of the United Nations Framework Convention 
on Climate Change negotiations. It  was later  expanded  to  include  conservation  of  forest 
carbon stocks, sustainable forest management and enhancement of forest carbon stocks. The 
combination of REDD and these three additional activities is called REDD+.

EU. The EU is contributing to achieve the Good Environmental Status of the Mediterranean 
Sea and coast through an ecologically representative and efficiently managed and monitored 
network of Marine Protected Areas (IMAP-MPA)103, in seven beneficiary countries, namely 
Algeria, Egypt, Israel, Lebanon, Libya, Morocco and Tunisia (2019-2023).

France. In December 2019, the French development agency (AFD) launched BIODEV 2030 
as a pilot group of 16 partner countries. The main objectives of BIODEV 2030 are to take 
biodiversity into account in strategic economic sectors to reduce pressure on nature over the 
next decade, and to promote the creation of national and regional coalitions to ensure the 
sustainability of sector-based commitments. The AFD has set the goal of devoting 30% of its 
climate funding in nature-based solutions, effectively doubling its investment in biodiversity to 
reach a target of €1 billion by 2025. The AFD further leads the Data4Nature Initiative, aiming 
at encouraging development banks to systematically share the raw biodiversity data collected 
during impact assessments on the Global Biodiversity Information Facility (GBIF). 

Germany.  Germany  funds  several  initiatives  to  preserve  and  protect  biodiversity.  The 
Partnership against Poaching and Illegal Wildlife Trade in Africa and Asia combats poaching 
of African elephants and rhinos along the entire illegal trade chain, both in the countries of origin 
and transit and in the predominantly Asian consumer countries. BioInnovation Afrika supports 
African countries by concluding benefit-sharing agreements between African providers of raw 
biological materials and ingredients, and users from Europe. The Blue Action Fund provides 
targeted grants to non-governmental organisations active in developing countries, with the aim 
of enhancing the management and use of coastal and marine ecosystems. The eco.Business 
Fund aims to promote business and consumption practices that conserve biodiversity and use 
natural resources sustainably. The Legacy Landscapes Fund secures the core financial needs 
for a network of up to 30 of the world’s most important ‘legacy landscapes‘, while at the same 
time respecting users’ rights and needs. 

Portugal. To fight illegal fishing, Portugal’s navy is working with the coast guards of Angola, 
Cape Verde, Cameroon, Ivory Coast, Gabon, Nigeria, Senegal, Togo, Guinea-Bissau and São 
Tomé and Principe to combat the growing incidence of illegal activities at sea, such as piracy, 
armed robbery and trafficking in drugs, weapons and persons. At the same time, it works to 
protect marine resources against illegal logging, fishing, poaching and other illegal activities.

On natural resources, biodiversity and ecosystems, the EU and its Member States have shown 
significant effort in policy making, with the EU renewing its biodiversity strategy and enforcing 
policies against illegal logging and wildlife trafficking. The Union has also doubled its ODA 
support for biodiversity, meeting the Aichi targets every year between 2015 and 2019; it likely 
met them again in 2020. Efforts are deemed to have been consistent and its commitments 
met. Commission President Ursula von der Leyen announced in her State of the Union in 
September 2021 that the EU was increasing its efforts further by doubling external funding 
for biodiversity, especially for the most vulnerable countries.

103. The IMAP-MPA Project (2019-2023) | UNEPMAP

60

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Support the conservation and sustainable 

management and use of natural resources, 

and the conservation and sustainable use of 

7

biodiversity and ecosystems.

International 

development 

4.4.3 Biodiversity

2015-2030

cooperation

Effort and Progress  
Consistent effort 7

Strengthening resilience

Half of the world’s poor people live in fragile or conflict-affected countries, and developing 
countries generally are more exposed and vulnerable to natural disasters – including pandemics. 
The 2019 Global Assessment Report on Disaster Risk Reduction (United Nations Office for 
Disaster Risk Reduction, 2019) found that severe inequalities between low- and high-income 
countries persist, with the lowest-income countries bearing the greatest relative costs of 
disasters and developing countries suffering 92% of the mortality attributed to internationally 
reported natural disasters.

Due to under-reporting, the true impact of COVID-19 on mortality in developing countries has 
been underestimated. A recent study by the Brookings Institution based on estimates produced 
by The Economist (Gill and Schellekens, 2021) concluded that 86% of excess mortality since 
the onset of the pandemic were in the developing world, a substantially higher share than the 
one for reported COVID-19 deaths (55%). 

Poverty and security are closely linked. That is why the 2030 Agenda and the European 
Consensus on Development explicitly acknowledge the mutually reinforcing nature of security 
and sustainable development. Preventing conflicts and ensuring sustainable post-conflict 
recovery are both essential to build resilience, which in turn is a necessary precondition for 
sustainable development. 

Objectives

Strengthening  partner  countries’  resilience 
is  a  central  objective  of  the  development 
and humanitarian assistance of the EU and 
its  Member  States  in  line  with  the  Sendai 
Framework  for  Disaster  Risk  Reduction 
2015-2030. The EU and its Member States 
recognise  the  need  to  move  from  crisis 
containment to a more structural, long-term 
approach to vulnerabilities, with an emphasis 
on anticipation, prevention and preparedness. 
Support for strengthening resilience at all levels 
is an integral part of the European Consensus 
on Development. 

The EU’s objectives in this area are to:

a)  strengthen the resilience, particularly of 
vulnerable populations, to environmental 
and economic shocks, natural and man-
made  disasters,  conflicts  and  global 
health threats;

Most Relevant SDG Goals  
and Targets 

1.5  By  2030,  build  the  resilience  of  the 
poor and those in vulnerable situations and 
reduce their exposure and vulnerability to 
climate-related extreme events and other 
economic, social and environmental shocks 
and disasters.

11.b: By 2020, substantially increase the 
number  of  cities  and  human  settlements 
adopting  and  implementing  integrated 
policies  and  plans  towards  inclusion, 
resource  efficiency,  mitigation  of  and 
adaptation to climate change, resilience to 
disasters, and develop and implement, in 
line with the Sendai Framework for Disaster 
Risk Reduction 2015–2030, holistic disaster 
risk management at all levels.

b)  support national strategies, including cross-governmental planning and programming, 

promoting resilience, reducing climate risk and helping to reduce emissions;

c)  encourage consideration of climate and disaster resilience in development financing to 

ensure the sustainability of development results;

61

d)  support domestic efforts tailored to the needs and context of each society to build 
sustainable democratic states resilient to external and internal shocks and address 
the causes of vulnerability, including inequality; 

e)  make coordinated, accelerated and cross-sectoral efforts to end hunger, increase the 
capacity for diversified local and regional food production, ensure food security and 
nutrition, and strengthen the resilience of the most vulnerable.

Nature-based solutions, ecosystem-based and community-based approaches are a key 
instrument for increasing resilience and simultaneously contributing to climate change 
adaptation and mitigation and to biodiversity conservation.

Implementation

Collective EU ODA for disaster risk reduction and multi-hazard response preparedness104 
rose from EUR  271  million in 2015 to EUR  410  million in 2019, almost twice the 2010 
level in real terms. Almost half of such ODA over the decade 2010-2019 was provided 
by the European Commission and the EIB.

The 2016 EU Sendai Action plan105 – aimed at fulfilling the 2030 Agenda requirements of 
addressing poverty, vulnerability and risk in crisis-prone and fragile contexts – calls for ‘a 
disaster risk-informed approach to policy-making’. The plan spells out a coherent agenda 
to strengthen resilience to risks and shocks. In order to better track its progress, the EU 
has developed its Results Chain on Resilience, Conflict Sensitivity and Peace for 
use in designing future EU actions. The chain comprises approximately 400 indicators 
related to resilience and peacebuilding, as well as conflict sensitivity.

Member States have 

launched more than 

40 initiatives and 

policies to increase 

Resilience

the resilience of 

vulnerable countries 

and populations 

to environmental, 

economic, natural and 

man-made disasters, 

conflicts, and global 

health threats.

The Joint Communication on Resilience106 issued in June 2017 aims to enhance joint 
action to build resilience. It expands the scope of the 2012 Commission Communication107, 
drawing lessons from the implementation of the latter. The 2017 communication places 
strong emphasis on anticipating, preventing and preparing for a broad spectrum of risks 
and addressing the roots of state and societal instability. 

Member States have launched more than 40 initiatives and policies to increase the 
resilience of vulnerable countries and populations to environmental, economic, natural 
and man-made disasters, conflicts, and global health threats. To build the resilience of 
vulnerable communities, the EU will also use its chairmanship of the Platform on Disaster 
Displacement in 2022 to promote global efforts to protect people displaced by disasters 
and climate change108.

Conflict sensitivity

As requested by the new NDICI – Global Europe regulation, a systematic conflict analysis 
exercise for fragile and crisis- or conflict-affected countries was begun in 2020 by the 
European Commission and the European External Action Service. A joint methodology for 
the exercise was developed and incorporated into programming guidelines. Its application 
will allow for more conflict-sensitive EU programming.

104. Since 2018, OECD DAC replaced the code 74010 (disaster prevention and preparedness) with 
a code solely dedicated to disaster risk reduction in the sector category 430; and a code solely dedicated 
to multi-hazard response preparedness in the sector category 740.

105. Commission Staff Working Document, Action Plan on the Sendai Framework for Disaster Risk 

Reduction 2015-2030. A disaster risk-informed approach for all EU policies. SWD(2016) 205 final/2.

106. Joint communication to the European Parliament and the Council, A Strategic Approach to 

Resilience in the EU’s external action, JOIN(2017) 21 final.

107. Communication from the Commission to the European Parliament and the Council on the EU 

Approach to Resilience: Learning from Food Security Crises, COM(2012) 586 final.

108. Communication from the Commission to the European Parliament and the Council on the EU’s 

humanitarian action: new challenges, same principles, COM/2021/110 final.

62

With respect to post-crisis, post-conflict and post-disaster response plans and frameworks, 
the UN, the World Bank and the EU continue to apply their tripartite commitment to conduct 
post-disaster needs assessments, pandemic recovery needs assessments, and recovery and 
peace-building assessments. A central part of these assessments is identifying the specific 
needs  of  fragile  and  conflict-affected  countries,  as  well  as  designing  resilience-related 
measures. In coordination with local authorities and governments, this joint process should 
now be revived and strengthened to ensure a coherent, complementary and sustainable 
approach to conflict prevention, reconstruction and ‘building back better’.

Nexus of humanitarian aid, development and peace 

In May 2017, Council Conclusions were adopted on ‘Operationalising the Humanitarian and 
Development Nexus’, later renamed the Humanitarian-Development-Peace nexus. The June 
2017 Communication on Strengthening Resilience highlighted the need to prioritise and 
enhance close cooperation of EU political, humanitarian and development actors on protracted 
crises. Over 2018-2020, important progress was made to ensure greater complementarity 
and coordination among humanitarian, development cooperation and political actions. 

Resilience and COVID-19

The COVID-19 pandemic has not significantly modified the approach to resilience of the 
EU and its Member States. On the contrary, the COVID-19 pandemic has demonstrated 
the benefits of the integrated, multidimensional and joint assessments already promoted 
by EU policy and translated into EU procedures, especially in fragile and crisis- or conflict- 
affected countries. The pandemic also confirmed the need for greater complementarity and 
coordination between humanitarian, development and peacebuilding actions and between 
EU Delegations and Member States. 

The  pandemic  has  further  highlighted  the  value  of  the  nexus  approach  in  dealing  with 
unexpected and complex crises in a timely and effective way. In countries where the EU 
already had nexus mechanisms in place, these proved useful in responding promptly to the 
short- and medium-term impacts of the COVID-19 crisis.

The EU and its Member States have made consistent efforts to supply ODA for disaster 
risk  reduction  and  multi-hazard  response  preparedness. Aid  amounts  increased  from 
EUR 271 million in 2015 to EUR 410 million in 2019, almost twice the 2010 level in real 
terms. The EU and its Member States have also supported multiple actions on resilience, 
both at the global and country levels. Finally, the EU’s new Results Chain on Resilience, 
Conflict Sensitivity and Peace will be useful in designing future EU actions. The framework 
has already been useful in addressing the impact of the COVID-19 pandemic in fragile and 
conflict-affected countries. To conclude, on the target of strengthening disaster resilience and 
preparedness through financing and policy reforms, the EU’s efforts have been consistent.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

4.5 Strengthening 
resilience

2015-2030

Strengthen disaster resilience and prepared-

ness through financing and policy reform. 7

Effort and Progress  
Consistent effort 7

Human development

COVID-19 has reversed decades of progress in human development and made achieving the 
SDGs by 2030 much more challenging, affecting as it has three of the fundamental building 
blocks of human development: health, income and education (OECD, 2020d). 

COVID-19 has increased inequality in health – in the availability of vaccines; in access to 
healthcare; in the spread of other diseases and in mortality rates (World Bank, 2022). A recent 
study estimates that the years of life lost due to the indirect effects of COVID-19 on the treatment 
of HIV, tuberculosis and malaria could be as high as 60% of the losses from the direct impact 
of the pandemic (Hogan et al., 2020).

63

The pandemic has raised global income inequality, partly reversing the decline in inequality 
achieved over the previous two decades. Income per capita in about 50% of low-income 
countries is forecast to remain below pre-pandemic levels this year, owing to recurrent COVID-19 
outbreaks, very low vaccination rates, rising poverty and limited fiscal space (World Bank, 2022). 
An estimated additional 115 million people could be pushed into extreme poverty, living at or 
below USD 1.90 (World Bank, 2020). Accounts of the impact of lockdown measures in the first 
half of 2020 suggest that the global Human Development Index will suffer a sharp decline.

In education, school closures disrupted learning, and unequal access to remote learning 
exacerbated inequalities. Over 100  million additional children will fall below the minimum 
proficiency level in reading as a result of the pandemic, according to UNESCO109. Globally, 
COVID-19 could result in a loss of 0.6 years of quality-adjusted schooling, with larger losses 
in low-income countries (Azevedo et al., 2020).

Objectives

Eradicating  poverty,  tackling  discrimination  and 
inequality and leaving no one behind are at the 
heart of EU development cooperation policy. To 
this end the EU and its Member States pursue the 
following objectives:

a)  promote social inclusion and cohesion, provide 
meaningful economic opportunities, and open 
the policy space to civil society; 

b)  continue to support partner countries in their 
efforts  to  build  strong,  resilient  healthcare 
systems, and to provide equitable, universal 
access to healthcare services; 

c)  allocate at least 20% of ODA to social inclusion 

and human development; and

d)  substantially  expand  the  number  of  higher-
education scholarships available to developing 
countries,  in  particular  the  least  developed 
countries, small island developing states and 
African countries. 

Implementation

Most Relevant SDG Goals  
and Targets 

3 . 8 . :   A c h i e v e   u n i v e r s a l   h e a l t h 
coverage,  including  financial  risk 
protection, access to quality essential 
health-care  services  and  access  to 
safe, effective, quality and affordable 
essential medicines and vaccines for all

5.1.: End all forms of discrimination 
a g a i n s t   a l l   w o m e n   a n d   g i r l s 
everywhere

8 . b . :   B y   2 0 2 0   d e v e l o p   a n d 
operationalise  a  global  strategy  for 
youth employment and implement the 
ILO Global Jobs Pact.

10.4.:  Adopt  policies,  especially 
fiscal,  wage  and  social  protection 
policies,  and  progressively  achieve 
greater equality.

The  EU  is  committed  to  allocating  at  least  20%  of  ODA  to  social  inclusion  and  human 
development. Between 2014 and 2019 the EU allocated an annual average of 18.7% of its 
ODA commitments to human development. The 20% target was exceeded in 2015 (21%) and 
as of 2018 (23.3% in 2018, 20.5% in 2019 and around 20.5% in 2020110. 

The commitment was reconfirmed again in 2021. Under the NDICI – Global Europe regulation 
of March 2021, human development is incorporated in geographic programmes and also 
figures as a thematic priority. Areas like education, health, gender equality, culture and youth 
have also been included under the thematic ‘global challenges’ to which the EU will allocate 
future funding. NDICI – Global Europe includes a commitment to allocate 20% of the funding  
to human development. 

109. UNESCO, Education: From disruption to recovery. 

110. ODA data from the OECD/DAC Creditor Reporting System are less complete than those provided by 
the European Commission and the EIB. To fully capture social transfers, the EU also manually picks programmes 
and funding for social protection that are reported under other purpose codes. This is not possible for OECD 
DAC Creditor Reporting System data, as the information is not available.

64

The EU and its 

member states 

provided close to EUR 

3.5 billion in grants 

and loans to COVAX, 

delivering 250 million 

vaccine doses in 

low- and middle-

income countries by 

the end of 2021.

ODA for gender equality from the EU and its Member States has also grown rapidly in real 
terms, from EUR 14.6 billion in 2014 to EUR 27.2 billion in 2019 (10% of which has a gender 
equality policy marker of 2). In relative terms, it has increased from 32% to 48% of all EU 
ODA commitments111. NDICI – Global Europe will be implemented in accordance with the 
principles of gender equality, women and girls’ empowerment, and preventing and combating 
violence against women. It will pursue the objective of making at least 85% of new blending 
and guarantee actions gender responsive (principal or significant objective); at least 5% of 
those actions should have gender equality as a principal objective.

However, while the 20% goal was met by EU Institutions in 2019 and 2020, the EU and its 
Member States allocated EUR 8.2 billion to human development in 2019, growing by over 
70% in real terms since 2015, but remaining at 13% of total ODA, well below the 20% goal.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

4.6 Human  
Development

2015-2030

Allocate at least 20% of ODA to social 
inclusion and human development, including 
health, education and social protection.

7 u

Effort and Progress  
Consistent effort 7 Insufficient progress u

Improving education in developing countries

The Commission strives to strengthen education systems in partner countries and to build 
their capacity to design and manage robust lifelong learning systems open to all. Forty-nine 
countries received support between 2014 and 2020.

The EU and its Member States have also provided capacity building and mobility opportunities 
in higher education and training, notably through the Erasmus+ programme. See Chapter 8 
for more information on the EU and its Member States’ scholarships.

Building good-quality, resilient healthcare systems

Member States are funding numerous projects to support national healthcare systems and 
global health. 

The EU and its Member States, in a Team Europe approach, have pursued multiple initiatives 
aimed at ending the pandemic. They provided close to EUR 3.5 billion in grants and loans to 
COVAX, the vaccine pillar of the ACT-Accelerator, a global partnership created to accelerate 
the development and equitable distribution of COVID tools (tests, treatments and vaccines). 
Most Member States’ donations (85% so far) have been channelled through the COVAX 
mechanism, delivering 250  million vaccine doses in low- and middle-income countries by 
the end of 2021. The EU and its Member States have also set up initiatives to local enhance 
vaccine manufacturing, access to medicines, and health technologies in Africa. 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 
development 
cooperation

4.6 Human  
Development

2015-2030

Promote social inclusion and cohesion and 
continue to support partner countries in their 
efforts to build strong, resilient healthcare 
systems of good quality

6

Effort and Progress  
Minimal effort 6

111. OECD DAC, Creditor Reporting System.

65

Investing in Sustainable Development - Progress report 2018-2020

INTERNATIONAL TRADE AS AN ENGINE FOR 
DEVELOPMENT

E
C
N
A
T
R
O
P
M

I

The share of developing countries’ exports has been increasing significantly over the 
last decade, from 42.8% of global merchandise exports in 2011 to 45.2% in 2020, 
mostly with developing economies in Asia, including China.  African exports are still 
marginal (2.5% in 2020).

Trade facilitation — the simplification, modernisation and harmonisation of export
and import processes — could save from 2% to 15% of the value of the goods
traded and help to significantly improve trade flows.

Trade can have both positive and negative effects on labour rights and the 
environment, that are addressed globally at the WTO and bilaterally through trade 
agreements.

Aid for Trade helps partner countries to make the most of their trade agreements. 

The EU and its Member States have 
fully implemented the Bali package, 
simplifying rules of origin for goods 
imported from developing countries, in 
particular LDCs. In 2019, nearly half of 
global development cooperation 
towards Trade Facilitation was from 
the EU and its Member States.

The EU imports more from LDCs than 
the US, Canada, Japan and China put 
together, fuels excluded.

The EU and its Member States
provided over 56% of global Aid for 
Trade (EUR 17.9 billion), with a share 
of 15% going to LDCs.

The EU offers preferential treatment to 
126 developing countries, removing 
import duties for 2/3 of tariff lines 
through trade agreements with 
developing countries (e.g. Economic 
Partnership Agreements with ACP 
countries) or unilateral trade 
preferences like the EU Generalised 
Scheme of Preferences.    

All EU recent trade agreements 
include Trade and Sustainable 
Development chapters on the respect 
of international labour and 
environment conventions. 

The EU’s Generalised Scheme of 
Preferences is widely recognised as 
the world’s most generous regime of 
unilateral trade preferences for 
developing countries that accounted, 
excluding China, for 32% of total EU27 
imports of goods over the decade 
2011-2020. 

66

Chapter 5  

International Trade as an  

Engine for Development 

The EU market 

is the most open 

to developing 

countries and a major 

destination for exports 

from low-income 

countries – Africa, in 

particular – and from 

the EU’s neighbours, 

thus helping to 

foster development 

and economic 

growth worldwide.

Trade  can  be  an  important  driver  for  sustainable  development  and  inclusive  growth. 
Developing economies in Asia, including China, account for most exports from developing 
countries,  representing  37.1%  of  global  trade  in  2020. African  exports,  still  marginal, 
decreased from their peak of 3.4% in 2011 to 2.5% in 2020. Developing countries in the 
Americas (including Argentina, Brazil, Chile and Mexico) saw their share in world trade 
drop from 6.1% in 2012 to 5.6% in 2020. 

According  to  WTO,  the  merchandise  trade  of  the  least  developed  countries  (LDCs) 
amounted to USD 226 billion in 2019, a 2% decrease from 2018, while their commercial 
services  trade  totalled  USD 43 billion,  increasing  by  10%.  Exporters  of  manufactured 
goods and oil accounted for 65% of LDCs’ merchandise exports. In services, travel receipts 
were the largest source of export earnings for this group of countries (WTO, 2020).

The rate of growth in world trade is expected to slow. 

In emerging markets and developing economies, new export orders are still not expanding, 
and industrial production is growing slowly, according to the latest World Bank Global 
Economic Prospects (World Bank, 2022). Orders are backlogged because of bottlenecks 
in  supply  chains,  depleted  inventories  and  record  high  shipping  costs,  which,  at  their 
peak in October 2021, were six times their 2019 levels. 

Commodity  prices’  boom  and  bust  cycles  are  becoming  more  intense.  Prices 
collapsed  with  the  arrival  of  COVID-19  and  then  surged  in  2021,  in  some  cases  to  all 
time-highs. These cycles, particularly important for many developing countries that are 
heavily dependent on commodity exports, are likely to continue, causing macroeconomic 
instability (World Bank 2022). 

The EU is the biggest exporter and importer of goods and services worldwide. The EU 
market is also the most open to developing countries and a major destination for exports 
from low-income countries – Africa, in particular – and from the EU’s neighbours, thus 
helping to foster development and economic growth worldwide. Fuels excluded, the EU 
imports  more  from  LDCs  than  do  the  US,  Canada,  Japan  and  China  combined  (WTO, 
2020). Total EU imports from LDCs reached EUR 32 billion in 2020, equivalent to 1.9% 
of global imports and to 21% of total LDCs exports with fuel included and 24% with fuel 
excluded (down from 22% and 27% in 2019, respectively, due to the impact of COVID-19 
on  trade) 112.  In  2019,  EU  trade  with  Central Asia  also  intensified,  making  the  EU  the 
region’s main trading partner, accounting for about a third of its overall external trade. 
While more than half of EU exports to the region are machinery and transport equipment, 
Central Asian exports to the EU largely centre on a few commodities, particularly crude 
oil, gas, metals and cotton fibre.

112. Source: UNCTAD Stats.

67

Objectives

The EU’s main objectives on trade are to:

Most Relevant SDG Goals  
and Targets 

a)  significantly  increase  world  trade  in 
a  manner  consistent  with  the  SDGs, 
i n c l u d i n g   e x p o r t s   f r o m   d e v e l o p i n g 
countries,  in  particular  the  LDCs,  with 
a view to doubling their share of global 
exports by 2020 as stated in the Istanbul 
Programme of Action113;

2.b: Correct and prevent trade restrictions 
and distortions in world agricultural markets, 
including through the parallel elimination of 
all forms of agricultural export subsidies and 
all export measures with equivalent effect, 
in accordance with the mandate of the Doha 
Development Round.

b) 

implement the Bali package114 (and ratify 
its trade facilitation agreement), thereby 
introducing simplified and preferential rules 
for imports from LDCs, giving preferential 
treatment  to  services  and  suppliers  of 
services from LDCs, and granting market 
access to LDCs free of duties and quotas;

c)  ensure  that  the  provisions  in  trade 
a g r e e m e n t s   r e l a t i n g   t o   t r a d e   a n d 
sustainable development are implemented 
and used effectively; and

d)  p r o m o t e   A i d   f o r   Tr a d e   t o   s u p p o r t 
implementation of the 2030 Agenda, better 
address developing countries’ trade and 
productive  capacities,  integrate  micro, 
small and medium-sized enterprises into 
global value chains, and allocate a larger 
share of Aid for Trade to LDCs.

Implementation

The  EU  Trade  Policy  Review  –  An  Open, 
Sustainable  and  Assertive  Trade  Policy, 
adopted in 2021, includes several priority areas 
related  to  trade  with  developing  countries, 
such as promoting responsible and sustainable 
value chains, as well as strengthening the EU’s 
partnerships with Africa115. 

Trade is at the heart of the strategic relationships 
the EU builds with partner regions. 

8.a:  Increase Aid  for  Trade  support  for 
developing  countries,  in  particular  least 
developed countries, including through the 
Enhanced Integrated Framework for Trade-
Related  Technical  Assistance  to  Least 
Developed Countries.

10.a:  Implement  the  principle  of  special 
and  differential  treatment  for  developing 
countries,  in  particular  least  developed 
countries, in accordance with World Trade 
Organisation agreements.

17.10: Promote a universal, rules-based, 
open,  non-discriminatory  and  equitable 
multilateral trading system under the World 
Trade Organisation, including through the 
conclusion of negotiations under its Doha 
Development Agenda.

17.11:  Significantly  increase  the  exports 
of developing countries, in particular with 
a  view  to  doubling  the  least  developed 
countries’ share of global exports by 2020.

17.12:  Realise  timely  implementation  of 
duty-free  and  quota-free  market  access 
on a lasting basis for all  least developed 
countries,  consistent  with  World  Trade 
O r g a n i s a t i o n   d e c i s i o n s ,   i n c l u d i n g   b y 
ensuring  that  preferential  rules  of  origin 
applicable to imports from least developed 
countries are transparent and simple, and 
contribute to facilitating market access.

The EU adopted a new strategy for Africa in March 2020. The strategy, Towards a comprehensive 
strategy with Africa116, includes a pillar on boosting trade and investment. Cooperation on 
the strategic corridors that facilitate intra-African and Africa-Europe trade and investment 
(thus providing sustainable, efficient and safe connectivity between the two continents) will 
be enhanced by the long-term prospect of creating a comprehensive continent-to-continent 
free-trade area. 

113. United Nations Conference on the Least Developed Countries, ‘Programme of Action for the Least 

Developed Countries for the Decade 2011-2020, 23 May 2011.

114. The Bali Ministerial Declaration and accompanying ministerial decisions – known informally as the 

Bali Package – were adopted at the Bali Ministerial Conference on 7 December 2013.

115. Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions, Trade Policy Review – An Open, Sustainable and 
Assertive Trade Policy. Brussels, 18.2.2021, COM (2021) 66 final.

116. Joint communication to the European Parliament and the Council, Towards a comprehensive Strategy 

with Africa, JOIN(2020) 4 final. 

68

The Africa-Europe Alliance for sustainable investment and jobs, launched in 2018 to promote 
intercontinental cooperation, seeks to boost employment and sustainable growth in Africa, in 
good part through investment and trade. The African Continental Free Trade Area(AfCFTA) 
is a key pillar of that alliance, and, from the outset, the EU has led in support for AfCFTA. 
Through its Pan-African Programme the EU has set aside EUR 74 million in direct support 
for AfCFTA negotiations and implementation. 

As laid down in the 2019 Joint communication ‘European Union, Latin America and the 
Caribbean: joining forces for a common future’117 (which constitutes the current framework for 
EU-LAC cooperation), bi-regional prosperity hinges on stronger and more inclusive growth, 
more diversified production structures, and greater productivity and competitiveness, as 
well as on deeper regional integration, consolidated trade relations with the EU, upgraded 
technology and a narrower digital gap. The EU is looking to progressively modernise its 
trade agreements with Latin America and the Caribbean to include provisions on sustainable 
development, and to revise or introduce provisions on intellectual property rights, services, 
investment, public procurement and regulatory cooperation.

The EU benefits developing countries by using several trade and development instruments 
aligned with the SDGs and the European Development Consensus. These instruments focus 
on strengthening market opportunities for developing countries118 and supplying Aid for Trade 
to support developing economies, particularly LDCs and other countries most in need. 

Widening market access for developing countries

Through its trade 

agreements, the EU 

supports regional 

The EU firmly believes in the central development role of the multilateral trading system. 
The EU is committed to advancing development issues within the WTO and encourages its 
members to engage in an open and constructive discussion of new approaches to trade and 
development, emphasising the importance of WTO negotiations in promoting growth. 

economic integration 

Multi- and bilateral trade arrangements

and endeavours 

to build skills 

and capacities in 

economic governance, 

trade facilitation 

and sustainable 

development.

The EU forms a trade bloc that offers an extensive network of free trade agreements and 
arrangements119. Forty per cent of EU external trade is governed by bilateral and regional 
trade agreements120. Through its trade agreements, the EU supports regional economic 
integration and endeavours to build skills and capacities in economic governance, trade 
facilitation and sustainable development. 

The Cotonou Partnership Agreement (soon to be replaced by a new agreement whose broad 
outlines were approved in April 2021) offers the EU and the 79 African, Caribbean and Pacific 
countries opportunities to negotiate development-oriented free-trade arrangements called 
economic partnership agreements (EPAs). To date, the EU has concluded 9 such agreements 
involving 53 African, Caribbean and Pacific countries. Of these, 7 are being implemented, 
involving 32 countries. Economic partnership agreements have a specific development focus, 
as they include a series of principles, objectives and specific initiatives to use trade to promote 
development. Development cooperation is an essential dimension in implementation of the 
agreements, which contain provisions aimed at supporting developing countries’ trade with 
the EU, such as 1) very long transition periods to gradually and selectively open markets, 
2)  special safeguards for the development of infant industries and for food security, and 
3) voluntary EU restraint with respect to WTO safeguards and dispute-settlement mechanisms. 

In parallel, the EU has concluded a series of free trade agreements with other developing 
countries  in Asia,  Latin America,  Europe’s  Eastern  neighbourhood  and  the  Southern 
Mediterranean. Altogether, the EU has concluded bilateral free trade agreements121 with 
85 countries eligible for EU development cooperation; 54 are under implementation. 

117. Joint communication to the European Parliament and the Council, European Union, Latin America 

and the Caribbean: joining forces for a common future. JOIN/2019/6 final.

118. i.e. support for advancing development issues in multilateral trade negotiations, unilateral trade 

preferences, and regional and bilateral trade agreements with developing countries.

119. See list of countries under the different trade arrangements here.

120. European Commission (2019), 2019 Annual report on the implementation of EU trade agreements. 

121. In force or about to be ratified.

69

The EU is pursuing a comprehensive approach that looks beyond tariffs at a wide range 
of issues such as trade facilitation, technical, social and environmental rules, services, 
intellectual property rights and public procurement, all of which make trade work better for 
development. All of the EU’s recent trade agreements systematically include provisions 
on labour standards, environmental protection and other issues relevant to sustainable 
development. The EU regularly monitors these provisions to ensure that they are implemented 
effectively. The EU and its Member States also offer support to partner countries in following 
through with commitments on trade and sustainable development. 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Ensure that the provisions in trade agree-
ments relating to trade and sustainable 
development are implemented and used 
effectively

7 u

International Trade

5. International 
trade

2015-2030

Effort and Progress  
Consistent effort 7 Commitments likely to be met u

Unilateral trade preferences

The EU’s Generalised Scheme of Preferences (GSP) is a preferential tariff system aimed at 
enabling trade with developing countries. It has three separate components, or ‘arrangements’. 
The general arrangement (‘standard GSP’) offers unilateral preferences to low-income and 
lower-middle income countries that do not benefit from other means of preferential trade 
access to the EU market, granting duty reductions for two-thirds of all tariff lines. In addition to 
the standard GSP arrangement, the GSP+ is a special incentive arrangement for sustainable 
development and good governance, removing tariffs for two-thirds of tariff lines for vulnerable 
low- and lower-middle income countries that commit to ratifying and implementing certain 
international conventions on to human rights, labour rights, protection of the environment and 
good governance. The Everything But Arms (EBA) scheme is the special arrangement that 
provides LDCs with duty-free, quota-free access for all products except arms and ammunition.

Regarding the impact of preferences, GSP has grown in importance, both in absolute and 
relative terms. Despite a declining number of beneficiaries, between 2014 and 2019, EU27 
imports from current GSP beneficiaries utilising any of the existing schemes increased by 
25%, whereas overall imports from third countries rose by just 16% over the same period. 
GSP is especially important for the poorest countries: Imports under EBA increased by 
47% between 2014 and 2019, from EUR 17.1 billion to EUR 25.2 billion. As shown in Table 
5.1, imports from LDCs accounted for 2% of total EU imports in 2019. Two-thirds of these 
imports benefitted from EBA preferences (from less than half in 2014). The share of imports 
under EBA grew more quickly over the period (from less than half of all imports from LDCs 
in 2014 to over two-thirds in 2019) than did the share under the GSP as a whole (from 32% 
of all imports from all GSP beneficiaries in 2014 to 39% in 2019), suggesting that LDCs are 
diversifying away from fuels and other goods not eligible for EBA preferences122. As fuels and 
minerals do not receive EBA preferences, the growth in the use of EBA preferences means 
more value added imports from LDCs

The EU took several measures between 2005 and 2020 to simplify rules of origin for goods 
imported from developing countries, in particular LDCs. 

In 2017, the EU introduced the Registered Exporters (REX) scheme in 2017. Open to all 
countries benefitting from the GSP, REX expanded in several countries between 2018 and 
2020123. REX replaced the previous system of certifications of origin issued by governments 
with self-certification by registered exporters. Today, LDC exporters need only include on 
their commercial documents a statement of origin containing their registration number. REX 
saves time, cuts red tape and improves efficiency. 

122. Commission Staff Working Document, Impact Assessment Report accompanying the document 
Proposal for a Regulation of the European Parliament and of the Council on applying a generalised scheme of 
tariff preferences and repealing Regulation (EU) No 978/2012 of the European Parliament and of the Council, 
22.9.2021, SWD(2021) 266 final. p. 15.

123.  REX – Registered Exporter system (europa.eu).

All of the EU’s recent 

trade agreements 

systematically 

include provisions 

on labour standards, 

environmental 

protection and other 

issues relevant 

to sustainable 

development. 

70

Table 5.1 – Shares of imports into the EU27 by partner/region, 2011-2021

Aid for Trade

Aid volumes

As shown in Figure 5.1, the EU and its Member States increased their Aid for Trade spending 
in real terms from EUR 16.1 billion in 2015 to EUR 17.9 billion in 2019. They were by far the 
biggest donor, providing over 38% of global Aid for Trade. In 2019, 5 of the top 10 recipients 
of EU Aid for Trade were in Asia,; only 1 (Ethiopia) was in Sub-Saharan Africa. However, 
Africa received 43% of all EU Aid for Trade in 2019, followed by Asia with 21%. Just over 
half of EU Aid for Trade went to building productive capacity (with services receiving about 
half of that); most of the rest went for economic infrastructure, mainly energy and transport. 

Member States committed EUR 5.2 billion to Aid for Trade, with Germany providing the 
largest share (52%), followed by France (27%) and the Netherlands (12%). More than half 
of Member States’ Aid for Trade was in the form of loans (EUR 2.8 billion). Between 2010 
and 2019, such loans represented on average about 83% of France’s Aid for Trade and more 
than 70% of Germany’s.

Figure 5.1 – EU Aid for Trade 

Commitments, EUR million, 2019 prices

71

20072009201120132015201720190K5K10K15K8,32910,87316,05217,9345,5038,54913,87513,861Trend in aid for tradeCommitmentsDisbursementsTeam EuropeJapanWorld BankAsDBUnited StatesKoreaAfDBUnited Kingd..IFADArab Fund (..17,9348,6495,7382,7702,4021,2531,1171,050773522Top 10 donors of aid for trade 2019Developing countries, unspecifiedIndiaMoroccoEgyptTurkeyPakistanEthiopiaAfghanistanViet NamBangladesh2,6811,6038297464432392251518842Top 10 recipients of EU aid for trade 2019Global32%LMICs35%UMIC18%LDCs15%Distribution of EU aid for trade by income group, 2019Caribbean & Central America4%South & Central Asia16%South of Sahara26%North of Sahara11%Far East Asia2%Regional Distribution of EU aid for trade, 2019Transport and Storage17%Energy Generation and Supply29%Industry7%ForestryBusinessAnd OtherServices7%Banking & Financial Services17%Agriculture15%Category and Sector Breakdown of EU Aid for Trade, 2019CategoryBuilding Productive CapacityEconomic InfrastructureTrade Policy & RegulationsTrade-related AdjustmentSource: OECD DAC, Creditor Reporting System.

In the EU 2017 Aid for Trade Strategy, the EU and its Member States have committed to 
boosting Aid for Trade to LDCs in order to improve their export capacities and raise their 
share in global export markets. The share of EU Aid for Trade going to LDCs stood at 15% 
in 2019, slightly up from 14.6% in 2015, but still far from the target of 25% set for 2030. 

The EU and eight of its Member States124 support Phase Two of the Enhanced Integrated 
Framework to help the LDCs harness trade for poverty reduction, inclusive growth and 
sustainable development. ODA commitments by the EU and its Member States at the end of 
2019 amounted to EUR 67 million, 53% of total commitments from all donors. The Enhanced 
Integrated Framework has so far prepared 45 diagnostic trade integration studies to identify 
trade priorities for LDCs. It has been associated with USD 1.5 billion in exports and 10,000 
micro, small and medium-sized enterprises. 

The EU and seven of its Member States125 also support the Standards and Trade Development 
Facility, which assists developing countries in implementing international standards of human, 
animal and plant health so as to improve their access to global markets.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International Trade

5. International 

Trade

2020

Increase significantly world trade in a 
manner consistent with the Sustainable 
Development Goals, including exports from 
developing countries, in particular from the 
LCDs with a view towards doubling their 
share of global exports by 2020.

7 u

Effort and Progress  

Consistent effort 7 Commitments not likely to be met  u

Trade facilitation

Bureaucratic delays and red tape pose a burden for traders trying to move goods across 
borders. Trade facilitation – the simplification, modernisation and harmonisation of export and 
import processes – could save from 2% to 15% of the value of the goods traded according 
to the OECD and would significantly improve trade flows.

124. Denmark, Estonia, Finland, France, Germany, Luxembourg, Netherlands and Sweden.

125. Denmark, Finland, France, Germany, Ireland, the Netherlands and Sweden. 

72

Team EuropeJapanWorld BankAsDBUnited StatesKoreaAfDBUnited Kingd..IFADArab Fund (..17,9348,6495,7382,7702,4021,2531,1171,050773522Top 10 donors of aid for trade 2019Developing countries, unspecifiedIndiaMoroccoEgyptTurkeyPakistanEthiopiaAfghanistanViet NamBangladesh2,6811,6038297464432392251518842Top 10 recipients of EU aid for trade 2019Global32%LMICs35%UMIC18%LDCs15%Distribution of EU aid for trade by income group, 2019Caribbean & Central America4%South & Central Asia16%South of Sahara26%North of Sahara11%Far East Asia2%Regional Distribution of EU aid for trade, 2019Transport and Storage17%Energy Generation and Supply29%Industry7%ForestryBusinessAnd OtherServices7%Banking & Financial Services17%Agriculture15%Category and Sector Breakdown of EU Aid for Trade, 2019CategoryBuilding Productive CapacityEconomic InfrastructureTrade Policy & RegulationsTrade-related AdjustmentTeam EuropeJapanWorld BankAsDBUnited StatesKoreaAfDBUnited Kingd..IFADArab Fund (..17,9348,6495,7382,7702,4021,2531,1171,050773522Top 10 donors of aid for trade 2019Developing countries, unspecifiedIndiaMoroccoEgyptTurkeyPakistanEthiopiaAfghanistanViet NamBangladesh2,6811,6038297464432392251518842Top 10 recipients of EU aid for trade 2019Global32%LMICs35%UMIC18%LDCs15%Distribution of EU aid for trade by income group, 2019Caribbean & Central America4%South & Central Asia16%South of Sahara26%North of Sahara11%Far East Asia2%Regional Distribution of EU aid for trade, 2019Transport and Storage17%Energy Generation and Supply29%Industry7%ForestryBusinessAnd OtherServices7%Banking & Financial Services17%Agriculture15%Category and Sector Breakdown of EU Aid for Trade, 2019CategoryBuilding Productive CapacityEconomic InfrastructureTrade Policy & RegulationsTrade-related AdjustmentTrade facilitation has become an important and prominent topic on the EU Aid for Trade 
agenda since the entry into force of the WTO Trade Facilitation Agreement (TFA) on 22 
February 2017, following its ratification by two-thirds of the WTO membership. Negotiated 
at the Bali WTO Ministerial Conference in 2013, the TFA includes commitments (so-called 
‘type C’ in particular) that are to be implemented by developing countries within an extended 
period of time and with benefit of technical assistance.

The European Commission set a goal of spending EUR 240 million for trade facilitation over 
the 2014-2020 Multiannual Financial Framework. The cumulative value from 2014-2019 was 
EUR 423.7 million, by far exceeding the commitment made to WTO when the TFA was signed.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International Trade

5. International 
trade

2015-2030

Promote Aid for Trade and facilitate MSME 
integration in global value chains. Allocate 
an increased proportion of Aid for Trade to 
LDCs

7 u

Implement the Bali package, including ratif-
ying the WTO Trade Facilitation Agreement, 
introducing simplified and preferential rules 
for imports from LDCs offering preferen-
tial treatment to services and suppliers of 
services of LDCs (Services Waiver), and 
offering duty- and quota-free market access 
to LDCs.

7 u

International Trade

5. International 
trade

2015-2030

Effort and Progress  
Very strong effort 7 Commitments met u

73

 
 
Investing in Sustainable Development - Progress report 2018-2020

DEBT AND DEBT SUSTAINABILITY

Unsustainable debt puts countries on a difficult path and can be a clear obstacle to 
sustainable development. 

While rising public debt levels were already a cause for concern at the end of last 
decade, the COVID-19 pandemic has triggered a massive increase in debt 
accumulation and has exacerbated the risk of debt crises for low- and middle-
income countries.

More than half of the least developed countries are currently in debt distress or at 
high risk of it.

The debt structure has shifted with a growing share of the private sector and non-
Paris club bilateral creditors. 

E
C
N
A
T
R
O
P
M

I

The EU and its Member States have 
provided substantial liquidity support to 
vulnerable low-income countries 
through the G20 Debt Service 
Suspension Initiative (DSSI) to help 
the poorest countries manage the 
impact of the COVID-19 pandemic. 
The EU and its Member States also 
supported the extension of the DSSI to 
the end of 2021, enabling a smooth 
transition to the G20’s Common 
Framework for debt treatments.

The EU and its Member States finance 
one third of the Catastrophe 
Containment and Relief Trust that 
provides grants for debt relief for the 
poorest and most vulnerable countries 
hit by catastrophic natural disasters or 
public health disasters. 

The EU and its Member States 
support the reallocation of the 
International Monetary Fund’s Special 
Drawing Rights (SDRs) to vulnerable 
countries. 

The EU and its Member States have 
supported global initiatives on 
responsible lending and borrowing 
practices such as those promoted by 
the G20, the Paris Club, UN, and the 
International Financial Institutions. For 
example, Team Europe supports the 
OECD Debt Transparency Initiative 
aiming to set up a database and 
reporting system focused on the 
recording of private lenders.

74

Chapter 6  

Debt and Debt Sustainability

COVID-19 pushed 

total global debt 

to its highest level 

since the 1970s. 

Before the onset of the COVID-19 pandemic, rising public debt levels were already a cause 
for concern, particularly in many of the world’s poorest countries (Kose et al., 2021). The 
level of external debt in the least developed countries (LDCs) had already risen from 24% of 
GDP in 2012 (following the debt relief of the 2000s) to 32% of GDP in 2019. 

COVID-19 pushed total global debt to its highest level since the 1970s. In emerging and 
developing economies, government debt rose by 9 percentage points to 63% of GDP in 2020, 
the fastest one-year increase over the past three decades. Government debt in low-income 
countries roughly doubled from a decade ago – constraining fiscal space and leading to 
an increase in the cost of debt service. In October 2021, the World Bank and International 
Monetary Fund (IMF) deemed that 55% of the LDCs were at high risk of debt distress or 
already in distress126. 

Moreover, the debt structure in LDCs has shifted, with a growing share now held by the private 
sector and non-Paris Club bilateral creditors127. China alone accounted for about 20% of the total 
debt (UN, 2021). Figure 6.1 shows the debt structure of LDCs; and Figure 6.2, that of countries 
eligible for the Debt Service Suspension Initiative (DSSI), which are discussed later in this 
chapter. Almost three-quarters of the bilateral external debt of DSSI-eligible countries is owed 
to bilateral creditors not belonging to the Paris Club. As most DSSI-eligible countries are LDCs, 
the same is likely to be true for them, though complete data for all LDCs is not publicly available.

Figure 6.1 – External debt structure in the least developed countries (LCDs)

Total debt as share of GDP: 32.8%

Total debt servicing as a share of GDP: 3.5%

Source: World Bank International Debt Statistics.

126. At high risk of debt distress are Afghanistan, Angola, Burundi, Central African Republic, Chad, Djibouti, 
Ethiopia, Gambia, Haiti, Kiribati, Lao People’s Democratic Republic, Mauritania, Sierra Leone, South Sudan, Tuvalu 
and Zambia (defaulted). Four already in distress are Mozambique, São Tomé and Principe, Somalia and Sudan.

127. Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Spain and 
Sweden are permanent members of the Paris Club and contribute to its deliberations and actions, with France 
also the chair and the secretariat of the Club. The Club is an important platform for debtor-creditor engagement: 
it has signed 475 debt restructuring agreements with 100 debtor countries, covering more than USD 580 billion 
in debt. The Paris Club intends to progressively expand its membership to major emerging creditors in view of 
the changing debt landscape (Brazil and South Korea recently joined the club as full members, while India did 
so in a way assimilated to that of an observer).

75

External Debt Structure for Least Developed Countries (LDCs)344Multilaterals35%Short-term9%Bilateral28%Private28%External Debt Stock(EUR billion)Figure 6.2 – External debt structure of DSSI eligible countries

Source: World Bank International Debt Statistics.

While a certain degree of debt is desirable to finance new investment, unsustainable debt 
puts countries on a difficult path and can be a clear obstacle to sustainable development. 
The high debt-service cost (in some countries more than half of the government’s budget or 
export revenues) drastically reduces governments’ fiscal space for social and development 
spending. Most low-income countries have already lost access to the international financial 
market, leaving them dependent on relatively limited domestic resources and concessional 
funding. According to the IMF, sixteen African countries have been downgraded by at least 
one rating agency since the start of the pandemic, and one has defaulted (Zambia).

Objectives

In  the  Addis  Agenda,  the  need  to  assist 
developing countries in attaining long-term 
debt sustainability is to be achieved through 
coordinated  policies  for  debt  financing, 
mobilisation of domestic resources, debt relief, 
debt  restructuring  and  debt  management. 
The Addis Agenda also calls for collaboration 
between  debtors  and  creditors  to  prevent 
and  resolve  unsustainable  debt  situations 
and encourages the study of new financial 
instruments for developing countries.

Implementation

Most Relevant SDG Goals  
and Targets 

17.4: Assist developing countries in attaining 
long-term  debt  sustainability  through 
coordinated policies aimed at fostering debt 
financing, debt relief and debt restructuring, 
as  appropriate,  and  address  the  external 
debt  of  highly  indebted  poor  countries  to 
reduce debt distress.

Support from the EU and its Member States in international fora

The EU has taken a leading role in several existing initiatives on responsible lending and 
borrowing practices, on top of them those promoted by the G20, the Paris Club, the UN and 
international financial institutions.

During the German Presidency of the G20, the European Commission and all G20 countries128 
endorsed operational guidelines for sustainable financing at their meeting in Baden-
Baden  in  March  2017. The  guidelines  cover  five  principles:  1) adequate  financing  for 

128. The G20 includes France, Germany and Italy as members and Spain as a permanent invited country.

76

Multilaterals33%Short-term8%Bilateral24%Private35%China12%Other Non-Paris Club6%Other Paris Club5%Team Europe2%External Debt Structure for DSSI Eligible CountriesExternal Debt Stock (EUR billion)660The World Bank/IMF 

Debt Sustainability 

Framework is a 

key reference for 

assessing debt 

sustainability in 

the context of 

EU development 

cooperation.

sustainable development; 2) information-sharing and transparency; 3) consistency of financial 
support; 4) coordination of stakeholders; and 5) promotion of contractual and new financial 
instruments and minimisation of litigation issues to strengthen resilience. The G20 is also 
committed to greater debt transparency, which is an essential for sustainable borrowing and 
lending. G20 supported the OECD Debt Transparency Initiative, in partnership with the 
Institute of International Finance (IFF), which aims at setting up a debt database and reporting 
system focused on the reporting of private lenders. 

In April 2020, the G20 and the Paris Club adopted the Debt Service Suspension Initiative 
(DSSI), to provide liquidity to help low-income countries respond to the COVID-19 crisis. 
The G20 and the Paris Club also launched, in November 2020, the Common Framework for 
Debt Treatments beyond the DSSI (the Common Framework), which provides additional debt 
relief for low-income countries facing unsustainable debt burdens. The Common Framework 
is discussed further below. 

The World Bank/IMF Debt Sustainability Framework is a key reference for assessing debt 
sustainability in the context of EU development cooperation. More than half of the LDCs 
and low-income countries using the framework129 are now considered at high risk of debt 
distress or already in debt distress (United Nations, 2021). The framework helps low-income 
countries maintain a sustainable level of debt while striving to achieve their development 
plans130. It also supports countries that have received debt relief under the Highly Indebted 
Poor Countries (HIPC) and Multilateral Debt Relief (MDRI) initiatives131. Two diagnostic tools 
are used: 1) a debt sustainability analysis for upstream debt management, which assesses 
the country’s risk of debt distress; and 2) a debt management performance assessment to 
assess debt management performance based on standard indicators. In addition, the IMF 
and the World Bank adopted in 2018 a multipronged approach for addressing emerging 
debt vulnerabilities that is based on four pillars: 1) strengthen debt transparency, by working 
with borrowing countries and creditors to make available better data on public sector debt; 
2) support capacity development in public debt management to mitigate debt vulnerabilities; 
3) provide suitable tools to analyse debt developments and risks; and 4) adapt the IMF’s 
and World Bank’s surveillance and lending policies to better address debt risks and promote 
efficient resolution of debt crises.

Some Member States, such as France and Belgium, have enacted laws to stop vulture funds 
from undermining efforts to restructure debt. In broad terms, the laws are meant to protect 
developing countries from being sued and having their assets seized by creditors who bought 
the debt when the debtor was in or near default. In addition, since the IMF endorsed their use 
in 2014, collective action clauses have been included in almost all new sovereign bonds. 

Actions by the EU and its Member States to further debt relief 
and debt sustainability

The EU recognises the importance  of responsible lending  and  borrowing practices and 
supports efforts to this end within the international framework. The EU has participated actively 
in several such efforts. The participation has come proceeded from either a multilateral or 
a bilateral perspective.

Multilateral framework

Over the period 2018-2020, the EU and its Member States took steps to help restore and 
preserve debt sustainability in low-income countries through various multilateral mechanisms.

129. For a detailed list see https://www.imf.org/external/Pubs/ft/dsa/DSAlist.pdf

130. Sweden and the Netherlands have been particularly active in the latest review of the framework, 

under implementation since June 2018.

131. For more details see https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/16/11/Debt-Relief-

Under-the-Heavily-Indebted-Poor-Countries-Initiative.

77

The EU and its Member States132 supported the DSSI. Discussed in the previous section, 
the DSSI was launched by the G20-Paris Club in April 2020 to provide liquidity for low-
income countries trying to manage the impact of the COVID-19 pandemic. DSSI consists 
of a temporary moratorium of payments by sovereign borrowers between May 2020 and 
December 2021 (including medium/long term export credits) for countries that request it. 

According to the World Bank’s 2021 International Debt Statistics, the total external debt of 
DSSI-eligible countries climbed by 9.5% to a record USD 744 billion in 2019 from the previous 
year. Only 2.4% of the increase is owed to the EU and its Member States. The pace of debt 
accumulation for DSSI-eligible countries was nearly twice the rate of other low- and middle-
income countries in 2019. 

With the extension of DSSI through the end of 2021, 40 out of 73 eligible countries benefited 
from around USD  13  billion in debt service suspensions, with savings contributing to the 
pandemic response (United Nations, 2021). 

The EU and its Member States have supported the G20-Paris Club Common Framework for 
Debt Treatments beyond the DSSI (the Common Framework) launched in November 2020. 
The Common Framework provides a mechanism to low-income countries facing unsustainable 
debt burdens for negotiating a debt restructuring agreement with their creditors. With broad 
participation by creditors, the Common Framework is a way of addressing the underlying 
structural  problems  in  heavily  indebted  countries  and  a  comprehensive  mechanism  for 
addressing the need for debt relief. Its goal is to facilitate on a case-by-case and transparent 
basis a timely and orderly restructuring of debts with G20 bilateral creditors and private 
creditors. In compliance with the Paris Club rules, the Common framework imposes a fair 
burden sharing among all creditors. Non-G20 official creditors, as well as private creditors, 
are required to participate and provide debt relief on comparable terms. Three countries 
(Chad, Ethiopia and Zambia) have so far requested debt restructuring under the Common 
Framework (United Nations, 2021).

The EU and its Member States have supported the Catastrophe Containment and Relief 
Trust. Initially established in February 2015 during the Ebola outbreak to provide grants for 
debt relief for the poorest and most vulnerable countries hit by catastrophic natural disasters 
or public health disasters, the Trust was modified in March 2020 to enable the IMF, as trustee, 
to provide grants for debt relief to its poorest and most vulnerable members to tackle the 
COVID-19 pandemic and its economic repercussions for up to two years from April 14, 
2020. The relief on debt service payments frees up additional resources to meet exceptional 
balance-of-payments needs created by the disaster and for containment and recovery. At the 
end of December 2021, 9 EU Member States had contributed: Germany, France, Netherlands, 
Spain, Greece, Sweden, Bulgaria, Luxembourg, Malta for a total of 217.3 million USD. The 
EU contribution (EUR 183 million or USD 212.5 million) brings the total contribution of the EU 
and Member States to USD 429.8 million or 50.43% of all contributions. The EU is the biggest 
donor of the trust. The EU, Austria, Germany and the Netherlands also support the Debt 
Management Facility, a multi-donor trust fund managed by the World Bank, the objective of 
which is to strengthen the debt management capacity of low-income countries. EU support 
focuses on capacity building for debt management performance assessments, reform plans, 
medium-term debt strategies, debt sustainability analysis, and other knowledge and training 
activities. The EU, together with Germany, Ireland, Netherlands and France, is also supporting 
UNCTAD’s Debt Management and Financial Analysis System programme, which aims to 
increase the ability of debtor countries to record and report accurate and reliable debt data 
domestically and internationally.

Moreover, the new general allocation of IMF Special Drawing Rights totalling USD 650 billion 
became effective on 23 August 2021, providing additional liquidity to countries struggling with 
the financial consequences of COVID-19. Low-income  countries will receive USD  21 billion 
of that allocation. The EU and its Member States support the ongoing efforts for voluntary 
channelling of SDRs from members with strong external positions to the benefit of low-income 
and vulnerable middle-income countries. The meeting of G20 leaders in Rome in October 
2021 confirmed the commitment made at the Summit on Financing African Economies in 
Paris in May 2020 to rechannel up to USD 100 billion of the SDR allocation for Africa and 

132.  Including  financial  support  from  Austria,  Belgium,  Denmark,  Finland,  France,  Germany,  Italy, 

Netherlands, Portugal, Spain and Sweden.

The EU and its 

Member States 

have supported 

the Catastrophe 

Containment and 

Relief Trust to 

provide grants for 

debt relief for the 

poorest and most 

vulnerable countries.

78

In the framework of its 

bilateral cooperation, 

the European 

Commission is 

implementing budget 

support programmes 

other vulnerable countries. The pledges will significantly scale up the lending capacity of the 
Poverty Reduction and Growth Trust. The EU and its Member States also support the IMF in 
its effort to establish a new Resilience and Sustainability Trust (RST) to provide affordable 
long-term financing to help low-income countries – including those on the African continent, 
small island developing states and vulnerable middle-income countries – reduce threats to 
their balance of payments, including those stemming from pandemics and climate change. A 
last option put forward by the IMF is rechannelling SDRs via multilateral development banks. 
In March 2022, IMF members had pledged USD 60 million – over half of the target – including 
USD 13.3 million from EU Member States.

offering grants 

Bilateral framework

under 230 contracts 

with 95 countries 

and territories.

In the framework of its bilateral cooperation, the European Commission is implementing 
budget  support  programmes  offering  grants  under  230  contracts  with  95  countries  and 
territories. On average, the budget support accounts for about 40% of national cooperation 
with partner countries. Macroeconomic stability and debt sustainability are an integral part 
of the conditions, analysis and policy dialogue of the programmes, which include building 
capacity to enhance debt management and transparency. If the risk of debt distress increases, 
mitigating measures can be designed, together with the national authorities, to address 
the situation. EU budget support has also enabled access to debt relief for LDCs in fragile 
situations. 

Moreover, Austria, Denmark and Germany have allocated significant funds to debt relief and 
debt sustainability, while nine133 are considering new debt-relief operations. 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Debt and debt 
sustainability

6. Debt and debt 
sustainability

2015-2030

Assist developing countries in reaching long-
term debt sustainability through coordinated 
policies aimed at debt financing, debt relief, 
debt restructuring and sound debt mana-
gement. Increase collaboration between 
debtors and creditors to prevent and resolve 
unsustainable debt situations.

7

Effort and Progress  
Consistent effort 7 

133.  Austria, Czech Republic, Denmark, France, Germany, Hungary, Italy, Spain and Portugal.

79

Investing in Sustainable Development - Progress report 2018-2020

ADDRESSING SYSTEMIC ISSUES

2020 was a key year for multilateralism as the worldwide impact of the pandemic 
demonstrated the need for intensified international cooperation between scientists, 
economists and policymakers at the United Nations, International Monetary Fund 
and within the G7 and G20 and other international fora.

Countries need to assess their policies’ impact on all three dimensions of 
sustainable development - economic, social, and environmental dimensions – and 
take measures to ensure policy coherence for sustainable development.

E
C
N
A
T
R
O
P
M

I

The EU and its Member States 
advocated for reforms of the United 
Nations and Bretton Woods 
Institutions aimed at a more inclusive 
global governance. 

To ensure policy coherence for 
sustainable development, the 
European Commission’s system of 
better regulation seeks to address 
interlinkages, synergies, and trade-offs 
between the three dimensions of 
sustainable development.

The Commission has reviewed its 
better regulation framework which is 
now used to actively pursue the 
Sustainable Development Goals in 
decision-making. All Commission 
services should identify and assess the 
contribution to the relevant SDGs in all 
impact assessments, legislative 
proposals and evaluations. 

The recent Joint Communication on 
strengthening the EU’s contribution to 
rules-based multilateralism (2021) is 
evidence of the importance the EU 
attaches to close partnerships with 
multilateral organisations.

The EU and its Member States are the 
largest contributor to the multilateral 
system and the largest provider of 
core contributions to multilateral 
organisations. Official Development 
Assistance commitments reached 
EUR 34 billion in 2019.

The EU and its Member States 
contributed to the replenishment of 
multilateral and regional development 
banks’ concessional funds, as well as 
to capital increases. 

80

Chapter 7   

Addressing Systemic Issues 

International governance

Objectives 

The Addis Agenda  calls  for  measures  to 
improve  and  strengthen  global  economic 
governance  and  to  arrive  at  a  stronger, 
more  coherent  and  more  inclusive  and 
representative  international  structure  for 
sustainable development. It also recognises 
the important role of multilateral development 
banks in supporting sustainable development.

Implementation

Most Relevant SDG Goals  
and Targets 

10.5: Improve the regulation and monitoring 
of global financial markets and institutions 
and strengthen the implementation of such 
regulations.

1 6 . 8 :   B r o a d e n   a n d   s t r e n g t h e n   t h e 
participation of developing countries in the 
institutions of global governance.

17.13:  Enhance  global  macroeconomic 
s t a b i l i t y,   i n c l u d i n g   t h r o u g h   p o l i c y 
coordination and policy coherence.

The EU and its Member States are the largest 
contributor to the multilateral system and the 
largest provider of core contributions to 
multilateral  organisations. As  shown  in 
Figure  7.1, they also tend to channel a large share of their efforts through the multilateral 
system. The EU and its Member States express their commitment to multilateral and regional 
organisations by contributing to replenishments of multilateral development banks’ concessional 
funds and to capital increases. 

During the period 2018-2020, the EU and its Member States participated in the 19th replenishment 
of the International Development Association (IDA-19); the 15th replenishments of the African 
Development Fund (ADF-15); and the 13th replenishment of the Asian Development Fund. 
They also contributed to the capital increases of the International Bank for Reconstruction 
and Development (IBRD), the International Finance Corporation (IFC); and of the African 
Development Bank (AfDB). 

Through these replenishment and capital increase processes, the EU and its Member States 
keep advocating for reforms of multilateral development banks aimed at a more inclusive global 
governance, supporting reforms to the voting powers of developing countries.

The Global Strategy on the EU’s Foreign and Security Policy134 anticipated the importance of a 
strong UN as the bedrock of the multilateral rules-based order and affirmed the EU’s commitment 
to it. While the concept of multilateralism has been challenged in recent years, the EU has 
remained a staunch supporter of an international rules-based order, with the UN at its core. In 
2020, when the UN celebrated its 75th anniversary, the EU strongly supported the position that 
multilateralism remains the best method of addressing global challenges. This was reconfirmed 
in February 2021 in the Joint Communication on strengthening the EU’s contribution to rules-
based multilateralism135. The Communication is evidence of the importance the EU places 
on close partnerships with multilateral organisations. At the same time, it lays out the EU’s 

134. A Global Strategy for the EU's Foreign and Security Policy, June 2016. For more details see https://eeas.
europa.eu/topics/eu-global-strategy/17304/global-strategy-european-unions-foreign-and-security-policy_en 

135.  Joint  Communication  to  the  European  Parliament  and  the  Council  on  strengthening  the  EU’s 

contribution to rules-based multilateralism, Brussels, 17.2.2021 JOIN(2021) 3 final.

81

While the concept of 

multilateralism has 

been challenged in 

recent years, the 

EU has remained a 

staunch supporter 

of an international 

rules-based order, with 

the UN at its core.

expectations of and ambitions for the multilateral system. The new approach frames a more 
strategic approach to our partnerships and alliances in the context of an evolving and more 
competitive multilateral environment. It maps out main goals and means at the EU’s disposal 
to promote multilateral solutions to global challenges. In this context, the EU actively continues 
to engage in development-related multilateral processes in the United Nations and other fora.

The  EU  is  a  driving  force  behind  the  ambitious  reform  agendas  of  the  multilateral 
development banks, which aim to make the institutions more effective and efficient, enable 
compliance with social and environmental standards at the highest level, and strengthen 
future-oriented  themes  in  their  programmes. These  include  environmental  and  climate 
protection, involving the private sector, global public goods, the migration and development 
nexus, and sustainable infrastructure. 

Figure 7.1 – The EU and its Member States’ use of the multilateral system in terms of ODA

82

excluding core contributions

2011201220132014201520162017201820190K10K20K30KEUR Commitment Defl26,31634,04222,65130,518Trend in the use of the multilateral system by donor group(Commitments, EUR millions, 2019 prices)Non-EU DACOther non-EUTeam Europe201120122013201420152016201720182019Contributions throughCore contributions to0K10K20K0K10K20K6,41912,6159,25015,29319,89821,42713,40115,225Trend in the use of the multilateral system by donor group and type of contribution(Commitments, EUR millions, 2019 prices)Team EuropeNon-EU DACOther non-EU37%18%24%89%30%22%21%34%1%5%2%0%5%0%4%Use of the multilateral system by donor group andregion, excluding core contributions(Commitments, EUR millions, cumulative 2011-2019, 2019 prices)Team EuropeNon-EU DACOther non-EU35%64%10%12%20%20%21%48%31%0%0%5%0%1%8%1%Use of the multilateral system by donor group andsector, excluding core contributions(Commitments, EUR millions, cumulative 2011-2019, 2019 prices)Team EuropeNon-EU DACOther non-EU18%59%18%21%42%29%32%19%40%1%2%9%Use of the multilateral system by donor group andincome group, (Commitments, EUR millions, cumulative 2011-2019, 2019 prices)GlobalAfricaAmericaAsiaEuropeOceaniaAdministrativeBudget supportDebt ReliefEmergencyInfrastructureMultisectorProductionRefugeesSocial SectorsGlobalLDCsLMICsOther LICsUMICsexcluding core contributions

Source: OECD/DAC Creditor Reporting System.

In January 2021, the EU and its Member States participated in the International Monetary 
Fund’s Bilateral Borrowing Agreements and the New Arrangements to Borrow, which will 
allow the IMF to maintain its lending capacity at around USD  1  trillion in coming years. 
Moreover, the EU and its Member States support the ambitious new SDR general allocation, 
equivalent to USD 650 billion, to provide additional liquidity to the global economic system 
by supplementing the reserve assets of the IMF’s 190 member countries. The increase was 
submitted for approval to the IMF’s Executive Board in June 2021136 and took effect on 23 
August 2021137.

The EU also continued to play an influential role in major OECD Development Assistance 
Committee (DAC) policies, acts and events, e.g. in negotiations for the new DAC Global 
Relations Strategy. The European Union has a long-standing collaboration with the OECD 
(since 1992) via the SIGMA programme, which monitors progress on public administration 
reforms and good governance, while also providing policy guidance to the partners of the 
EU’s Neighbourhood Policy.

The EU has been active in the G7 and G20 and endorsed the G20’s Support to COVID-19 
Response and Recovery in Developing Countries138. 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Systemic issues

7.1 International 
governance

2015-2030

Improve and enhance global economic 
governance and arrive at a stronger, more 
coherent and more inclusive and representa-
tive international architecture for sustainable 
development.

7

Effort and Progress  
Consistent effort 7 

136. IMF (2021), Press Release No. 21/77.

137. IMF (2021), 2021 General SDR Allocation.

138. G20 Development Ministerial Session, A global response to support COVID-19 recovery in developing 
countries and foster progress on the 2030 Agenda for Sustainable Development, Communiqué, Matera, 29th 
June 2021.

83

Team EuropeNon-EU DACOther non-EU37%18%24%89%30%22%21%34%1%5%2%0%5%0%4%Use of the multilateral system by donor group andregion, excluding core contributions(Commitments, EUR millions, cumulative 2011-2019, 2019 prices)Team EuropeNon-EU DACOther non-EU35%64%10%12%20%20%21%48%31%0%0%5%0%1%8%1%Use of the multilateral system by donor group andsector, excluding core contributions(Commitments, EUR millions, cumulative 2011-2019, 2019 prices)Team EuropeNon-EU DACOther non-EU18%59%18%21%42%29%32%19%40%1%2%9%Use of the multilateral system by donor group andincome group, (Commitments, EUR millions, cumulative 2011-2019, 2019 prices)GlobalAfricaAmericaAsiaEuropeOceaniaAdministrativeBudget supportDebt ReliefEmergencyInfrastructureMultisectorProductionRefugeesSocial SectorsGlobalLDCsLMICsOther LICsUMICsPolicy coherence for sustainable development

Objectives

Most Relevant SDG Goals  
and Targets 

The Addis Agenda calls for greater attention to 
policy coherence across the three dimensions 
of  sustainable  development  –  economic, 
social and environmental. It recognises that 
countries must assess their policies’ impact 
on  sustainable  development.  The  SDGs 
reaffirm the commitment to eradicate poverty 
but inscribe that commitment within the wider context of supporting democratic values, 
protecting fundamental human rights, investing in sustainable environmental management 
and promoting dignity and fair labour practices. Policy coherence among these different 
goals is essential. 

17.14: Enhance policy coherence for 
sustainable development.

Implementation

Article 208 of the Treaty on the Functioning of the European Union139 stipulates that the 
EU  ‘shall  take  account  of  the  objectives  of  development  cooperation  in  the  policies  it 
implements which are likely to affect developing countries’. The European Consensus on 
Development140 reaffirmed the importance of this principle, known as ‘policy coherence for 
development’. The consensus recognised policy coherence as a crucial element of the EU’s 
strategy to achieve the SDGs and as an important contribution to the broader objective of 
policy coherence for sustainable development. 

In  view  of  this  new  perspective  on  policy  coherence  for  development,  the  Commission 
adapted its approach to ensure its relevance in the new political framework. The Commission 
reporting on policy coherence for development was integrated into the function of reporting 
on  SDGs,  notably  in  the  EU’s  comprehensive  reporting  at  the  UN  High  Level  Political 
Forum in 2019. Policy coherence has been integrated into the Commission’s overall work 
on implementation of the 2030 Agenda, notably by making it an integral part of the inter-
service steering group on the SDGs. 

Every year, the steering group identifies several policy coherence initiatives to prepare over 
the year that offer the potential of significantly improving partner countries’ ability to achieve 
the  SDGs. This  inventory  is  meant  to  promote  synergies  among  policies  and  minimise 
incoherencies at an early stage of policy formulation, e.g. when carrying out ex ante impact 
assessments. It is, therefore, an important instrument to promote policy coherence and a 
good example of the EU’s continuous commitment to the SDGs.

Addressing interlinkages, synergies and trade-offs in the three dimensions of sustainable 
development is embedded in the European Commission’s guidance on improving regulation. 
In 2018, the Commission initiated the review of its ‘better regulation’ guidance141 aiming, 
among other things, to integrate the SDGs into the ‘better regulation’ system (European 
Commission,  2019a).  In  2020,  the  Commission  launched  the  Staff  Working  Document 
”Delivering on the SDGs”. The report focuses on the governance of the SDG implementation 
and confirms a whole-of-Commission approach to implement the SDGs. It also highlights 
the close interconnection between the ambitions of the Commission and the SDGs. It puts 
forward the context of policy coherence for sustainable development and announces that 
the SDGs will be integrated in the Better Regulation framework. 

139. Consolidated version of the Treaty on the Functioning of the European Union, Part Five - The Union's 
External Action, Title III - Cooperation with Third Countries and Humanitarian Aid, Chapter 1 - Development 
Cooperation, Article 208, OJ C 202, 7.6.2016, p. 141–141.

140. Joint Statement by the Council and the Representatives of the Governments of the Member States 
meeting within the Council, the European Parliament and the European Commission (2017), The New European 
Consensus on Development.

141.  Commission  Communication,  Better  regulation:  taking  stock  and  sustaining  our  commitment, 

All Commission 

services should 

assess the 

contribution to the 

relevant SDGs in all 

impact assessments, 

legislative proposals 

and evaluations.

COM(2019) 178.

84

The  subsequent  revision  in  2021  of  the  Better  Regulation  implies  that  all  Commission 
services  should  identify  and  assess  the  contribution  to  the  relevant  SDGs  in  all  impact 
assessments, legislative proposals and evaluations. 

The better regulation package introduced a tool (Tool #35 – Developing Countries) to ensure 
that, when the screening process reveals a likely impact, appropriate consultation should be 
promptly planned and should include stakeholders in developing countries. If consultation 
indicates that impacts are likely to be significant, a thorough assessment, with a strong 
focus  on  LDCs  and  countries  most  in  need,  must  be  carried  out.  Since  2015,  all  major 
European Commission ex post evaluations and reviews are subject to quality control by 
the Regulatory Scrutiny Board, contributing to strengthened oversight of such evaluations.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Systemic issues

7.2. policy  
coherence

2015-2030

Mainstream policy coherence for 
sustainable development across all three 
dimensions of sustainable development.

6 u

Effort and Progress  
Minimal effort 6 Commitments not likely to be met  u

85

Investing in Sustainable Development - Progress report 2018-2020

SCIENCE, TECHNOLOGY, INNOVATION AND 
DIGITALISATION

Science, technology and innovation play a central role in achieving the SDGs to 
address pressing societal and economic challenges, accelerate green transition, 
create new jobs and businesses, and help reduce poverty. 

In the post-COVID-19 world, strong digital connections have become even more 
essential. 

Digital technologies and services are powerful enablers for sustainable, inclusive 
development and growth. 

The access and use of Internet and digital technologies is not equally distributed 
around the world, and nearly 40% of the world’s population remains unconnected, 
most of them in LDCs. Tackling the digital divide is essential.

E
C
N
A
T
R
O
P
M

I

The EU and its Member States are the 
second largest provider of ODA for 
science, technology and innovation to 
developing countries reaching almost 
EUR 1 billion for STI in 2019. 

The EU and the African Union have 
established the African-European 
Innovation Bridge (AEDIB) as a pan-
African network of digital innovation 
hubs. 

The Digital4Development (D4D) 
approach is the European 
Commission’s comprehensive 
framework for its digital development 
policy since 2017.

The Digital4Development Hub, 
launched at the end of 2020 gathers 
key stakeholders from EU Member 
States, private sector, civil society and 
financial institutions in a Team Europe 
spirit notably to scale up investments 
in the digital transformation of partner 
countries.

The EU-AU Data Flagship aims to 
strengthen the African data economy, 
facilitating investments in African data 
infrastructure and data technologies 
and services that can accelerate the 
digital transformation of the continent. 

In 2021, the European Commission 
published its Communication 2030 
Digital Compass: the European way 
for the Digital Decade, which presents 
the vision and strategy of Europe’s 
digital transformation through 2030. 

86

Chapter 8  

Science, Technology, Innovation 

and Digitalisation 

Science, technology, innovation and 
digitalisation have continued to gain 
importance  in  all  spheres  of  human 
activity. They play a cross-cutting role 
in the Sustainable Development Goals 
(SDGs)  related  to  pressing  societal 
and  economic  challenges,  such  as 
accelerating  the  green  transition, 
creating new jobs and businesses, and 
reducing poverty.

C O V I D   1 9   c a u s e d   i n n u m e r a b l e 
companies  and  public  services  to 
shift  to  digital  tools,  but  the  digital 
divide,  which  is  particularly  strong 
in  developing  countries,  meant  that 
inequalities  among  and  within  low-
income  countries  grew  even  wider. 
The digital divide, particularly where it 
is widest, worsened income inequality 
and human capital accumulation in low-
income households, as discussed in 
Chapter 4. 

Objectives

Through  the Addis Agenda  and  the 
SDGs, governments are committed to 
adopting national science, technology 
and  innovation  strategies  so  as  to 
promote  access  to  technology  and 
establish  enabling  environments  for 
the digital economy and sustainable 
development  more  broadly.  Specific 
commitments  were  made  to  support 
developing  countries  in  their  efforts 
t o   p r o m o t e   s c i e n c e ,   t e c h n o l o g y 
and  innovation  (STI),  including  the 
enhancement  of  national  innovation 
systems, improvement of STI policies, 
strengthening  of  capacities  and  the 
provision  of  scholarships.  In  the 
European Consensus142, the EU and 
its Member States further committed 
to mainstreaming digital solutions in 

Most Relevant SDG Goals  
and Targets 

2.a: Increase investment, including through enhanced 
international  cooperation,  in  rural  infrastructure, 
agricultural  research  and  extension  services, 
technology development, and plant and livestock gene 
banks to enhance agricultural productive capacity in 
developing countries, in particular in least developed 
countries

4.b: By 2020, substantially expand globally the number 
of scholarships available to developing countries, in 
particular least developed countries, small island 
developing states and African countries, for enrolment 
in  higher  education,  including  vocational  training 
and  information  and  communications  technology, 
technical, engineering and scientific programmes, in 
developed countries and other developing countries.

9.5:  Enhance  scientific  research,  upgrade  the 
technological capabilities of industrial sectors in all 
countries, in particular developing countries, including, 
by 2030, encouraging innovation and substantially 
increasing the number of research and development 
workers per 1 million people and public and private 
research and development spending.

17.6:  Enhance  North-South,  South-South  and 
triangular regional and international cooperation on 
and access to science, technology and innovation 
and enhance knowledge sharing on mutually agreed 
terms,  including  through  improved  coordination 
among  existing  mechanisms,  in  particular  at  the 
United Nations level, and through a global technology 
facilitation mechanism

1 7 . 7 :   P r o m o t e   t h e   d e v e l o p m e n t ,   t r a n s f e r, 
dissemination, and diffusion of environmentally sound 
technologies to developing countries on favourable 
terms, including on concessional and preferential 
terms, as mutually agreed.

17.8: Fully operationalise the technology bank and 
science, technology, and innovation capacity-building 
mechanism for least developed countries by 2017 and 
enhance the use of enabling technology, in particular 
information and communications technology.

142.  Joint Statement by the Council and the Representatives of the Governments of the Member 
States meeting within the Council, the European Parliament and the European Commission (2017), The New 
European Consensus on Development, 2017/C 210/01. 

87

development, promoting the use of digital technologies and supporting enabling environments 
for  the  digital  economy  by  improving  free,  open  and  secure  connectivity  and  removing 
obstacles to the realisation of the digital economy’s full potential for sustainable development. 

Figure 8.1 – The EU and its Member States’ ODA for science, technology and innovation 

Commitments, EUR million, 2019 prices

88

20112013201520172019050010001500Trend in ODA for Science, Technology and Innovation (STI)Team EuropeNon-EU DACOther non-EUMultilateralsTeam EuropeNon-EU bilateral donorsMultilateral Organisations20%Asia14%Global0%Oceania21%Africa17%Asia19%Africa9%Asia8%Europe3%America5%America6%America1%Oceania3%Oceania0%Europe2%Europe60%Global55%Global58%AfricaODA for STI by Region, 2019Team EuropeNon-EU bilateral donorsMultilateral Organisations6%UMICs9%UMICs12%UMICs25%Global50%LDCs19%LMICs64%Global14%LDCs13%LMICs69%Global8%LDCs11%LMICsODA for STI by Income Group, 2019TurkeyIndiaChinaBrazilViet NamIndonesiaEgyptAfghanistanBangladeshPakistan3311311291081075141121010Top 10 recipients of EU ODA for STI, 2019United KingdomTeam EuropeKoreaAustraliaNorwayIDATurkeyWorld Health OrganisationArab Bank for Economic De..Canada96689314391777556433628Top 10 donors of  ODA for STI, 2019Source: OECD/DAC – Creditor Reporting System

Implementation

Science, technology and innovation 

As shown in Figure 8.1, the EU and its Member States are the second largest provider of 
official development assistance (ODA) for STI to developing countries. Between 2010 and 
2019, EU commitments in this area – not including digital transformation and scholarships 
– grew by 20%, from EUR 764 million to EUR 880  million, representing more than 40% of 
global ODA for STI143. Most programmes are either global or regional, with Africa receiving 
about half of bilateral STI support. Agricultural, environment and medical research receive 
the largest share of EU STI support. The EU and 13 Member States144 reported some 60 
STI projects valued at EUR 630 million. 

The EU, collectively, 

is the world’s largest 

source of scholarships 

for students from 

developing countries.

Since 2018, the European Commission has been contributing to the development of STI 
for SDGs roadmaps in the context of the Global Pilot Programme launched by the United 
Nations Inter-Agency Task Team on STI for SDGs (UN IATT) of the Technology Facilitation 
Mechanism  145. In 2021, a series of guidance documents were published jointly with UN 
IATT. This new approach is based on an EU approach to the design and implementation 
of  localised  STI  agendas. Two  out  of  six  global  pilot  countries  have  already  used  the 
methodology, which is now being applied in developing countries in Africa. In 2021, a series 
of  awareness  raising  and  capacity  building  activities  on  STI  for  SDGs  were  organised, 
reaching more than a thousand policy makers and interested stakeholders.

By a wide margin, the EU, collectively, is the world’s largest source of scholarships for 
students from developing countries. European spending represents almost 90% of total 
ODA spending for scholarships by donor countries. Some Member States are particularly 
active in this area: Germany and France together provided 75% of the EU total in 2019. 

Figure 8.2 shows that the objective of substantially expanding the number of scholarships 
available to developing countries by 2020 is within reach, although the impact of COVID-19 
on student travel may have affected these programmes in 2020. Between 2014 and 2019, 
European  annual  commitments  for  scholarships  grew  by  45%,  from  EUR  2  billion  to 
EUR 2.9 billion (at 2019 prices). EU scholarships to residents of African countries also grew 
in real terms, from EUR 654 million in 2014 to EUR 790 million in 2019, and to residents 
from LDCs from EUR 234  million to EUR 277 million, though declining in relative terms 
from 12% in 2014 to 9% in 2019.

Capacity-building is central to boosting innovation in developing countries. The European 
Commission supports the Partnership for Research and Innovation in the Mediterranean 
Area,  a  multilateral  funding  programme  involving  EU  Member  States,  Horizon  2020 
associated  countries  and  Mediterranean  partner  countries  on  an  equal  footing  of  co-
ownership, co-management and co-funding. 

France, through a network of operators such as CIRAD (Centre de coopération internationale 
en recherche agronomique pour le développement) and IRD (Institut de recherche pour le 
développement), strengthens the role of international scientific communities in developing 
countries  and  helps  in  building  their  capacity.  In  February  2021,  France  established 
an  Innovation  Fund  for  Development  to  support  low-  and  middle-income  countries  in 
accelerating the deployment of solutions to fight poverty.

143.  Source:  Creditor  Reporting  System,  OECD,  commitments,  2019  prices.  Data  for  the  European 

Institutions does not include funding from the research and innovation framework programme Horizon 2020.

144. Austria, Belgium, the Czech Republic, Germany, Estonia, Finland, Hungary, Lithuania, Malta, Portugal, 

Romania, Slovenia, and Sweden.

145. See Global Pilot Programme on STI for SDGs Roadmaps; Technology Facilitation Mechanism 

89

Research/scientific institutions244Medical research74Environmental research147Agricultural research308Advanced technical andmanagerial training52ODA for STI by Type, 2019Lithuania supports hydroponic fodder technology to promote entrepreneurship in Mali. The 
aim of the project is to improve social and economic conditions of young Malians through skills 
development, improved access to basic services and adaptation of innovative technologies 
to local conditions.

Figure 8.2 – The EU and its Member States’ ODA for scholarships and study costs
Commitments, EUR million, 2019 prices.

90

Source: OECD/DAC - Creditor Reporting System.

201020112012201320142015201620172018201901,0002,0003,0001,2524772,1942,0452,921Trend in ODAEU and its Member StatesNon-EU DACOther non-EUMultilaterals20102011201220132014201520162017201820192,3271,7651,6741,6391,9361,6042,1211,5891,5821,571281246243242256274239238237225Trend in ODA by income groupLDCs/Low IncomeMiddle IncomeChinaIndiaTurkeyViet NamBrazilEgyptIndonesiaPakistanBangladeshAfghanistan3,0671,01880051350335632231815271Top 10 recipients of EU ODA, 2019Top 10 donors, 2019JapanSaudi ArabiaTurkeyUnited KingdomAustraliaKoreaNew ZealandCanadaSwitzerland2,921165142133727164453610EU and its Member States4%America6%Europe4%Oceania10%Global20%America7%America14%Europe21%Global27%Africa21%Africa37%Africa44%Asia42%Asia41%Asia75%Multisector92%Higher education79%Higher education13%Multisector5%General25%GeneralEU and its Member StatesNon-EU bilateral donorsMultilateral OrganisationsODA by Region, 2019EU and its Member StatesNon-EU bilateral donorsMultilateral OrganisationsODA by Type, 2019In 2019, in cooperation with the Istanbul Regional Hub of the UN Development Programme, 
Poland launched a new modality to promote private sector engagement in development 
cooperation. The  Polish  Challenge  Fund  is  a  platform  for  identifying  and  implementing 
innovations from the private sector, research institutes and academia that are sustainable, 
relevant to the local context, scalable and replicable.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Science, technology, 
innovation and  
digitalisation

8.1 Science, 
technology and 
innovation

2015-2030

Continue investing in research and deve-
lopment in and for developing countries, 
including the enhancement of national 
innovation systems

7 u

Science, technology, 
innovation and  
digitalisation

8.1 Science, 
technology and 
innovation

2020

Expand substantially the number of schol-
arships available globally to developing 
countries by 20220.

7 u

Effort and Progress  
Consistent effort 7   Commitments likely to be met u 
Very strong effort 7 Commitments met u  

The central role of 

digitalisation for 

Digitalisation

developing countries 

has grown gradually 

over the years.  

Global digital 

partnerships are now 

one of five priorities 

for the EU’s external 

cooperation efforts.

Over the decade from 2010 to 2019, ODA provided by the EU and its Member States to bridge 
the ‘digital divide’ remained quite low, although OECD DAC data on digitalisation underestimate 
volumes146. The EU and its Member States provided on average EUR 136  million in ODA 
for digital transformation in 2018-2019147, almost twice the 2015 level of EUR 70 million, but 
representing 13.5% of global ODA for digital in 2019. However, a positive trend is that EU 
commitments for digital transformation to LDCs grew sharply, from EUR 2 million in 2014 to 
EUR 28 million in 2019.

The central role of digitalisation for developing countries has grown gradually over the years, 
but global digital partnerships are now one of five priorities for the EU’s external cooperation 
efforts. Tackling the digital divide is essential. The access and use of Internet and digital 
technologies is not equally distributed around the world, and nearly 40% of the world’s 
population remains unconnected, most of them in LDCs. The EU’s long-term budget, coupled 
with NextGenerationEU, will be the largest stimulus package ever financed in Europe; one 
of its main purposes is to promote a more equitable digital future. 

In early 2021, the Commission published its Communication 2030 Digital Compass: the 
European  way  for  the  Digital  Decade148. The  communication  presents  the  vision  and 
strategy of Europe’s digital transformation through 2030. Its external dimension includes 
a strong focus on international partnerships and a commitment to develop digital economy 
packages for developing and emerging countries. These packages are being designed so that 
the cardinal points of the Digital Compass remain linked and addressed comprehensively, 
guaranteeing  the  promotion  of  a  human-centric  approach  to  digital  development  within 
international organisations, in cooperation with Member States and like-minded partners.

146. OECD (2019), Connecting ODA and STI for inclusive development: measurement challenges from a 

DAC perspective, DCD/DAC(2019)38.

147. Source: OECD Creditor Reporting System. Reporting of ODA for ICT could be substantially higher 
than the figures shown here. Because ICT is a cross-sector investment, most donors attribute ICT spending to 
the sector in which the technology is used. 

148. Communication from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions, 2030 Digital Compass: the European way for the 
Digital Decade, COM(2021) 118 final.

91

The Digital4Development (D4D)149 approach has been the Commission’s comprehensive 
framework for digital development policy since 2017150. It acknowledges the potential of digital 
technologies and services as powerful enablers for sustainable, inclusive development and 
growth. The EU’s development cooperation response to digital challenges is structured into 
four pillars of digital transformation aligned with the cardinal points of the Digital Compass: 1) 
governance, policy and regulatory frameworks; 2) support for universal access to enhanced, 
affordable and secure connectivity; 3) digital literacy, skills and entrepreneurship; and 4) 
accelerated adoption of e-services for achieving the SDGs. 

The Global D4D Hub, established by the EU and five founding EU Member States151, gathers 
key stakeholders from EU Member States, the private sector, civil society and financial 
institutions in a Team Europe spirit and connects them with stakeholders in partner countries 
having three objectives; 1) to scale up investments in the digital transformation of partner 
countries; 2) to promote a comprehensive values-based rulebook for a digital economy 
and society worldwide; and 3) to promote a stronger and more strategic EU engagement 
in international digital partnerships. The African Union-European Union D4D Hub, the first 
operational regional component of the larger hub, began operations in January 2021. It 
will operate as a strategic tool to advance stakeholder dialogue, joint partnerships and 
investments in the African digital economy. The Latin America and Caribbean branch was 
launched in December 2021 and will become operational in 2022, while the launch of the 
South East Asia leg was foreseen at the Indo-Pacific forum on 22 February 2022 with its 
start later on this year.

The sixth EU-Africa business forum, held in 2017, concluded that the digital economy is 
a driver of inclusive job creation and sustainable development, and that it provides cost-
effective solutions to ongoing development challenges. The importance of an EU-Africa digital 
cooperation platform involving all relevant stakeholders was acknowledged. The D4D policy 
included support for digital integration on the African continent, the deployment of affordable 
broadband connectivity and equipping young people with digital stills.

At the same time, the EU and the African Union also established the African-European 
Innovation Bridge (AEDIB) as a pan-African network of digital innovation hubs. AEDIB will 
promote joint ventures between Africa and Europe; provide technical innovation expertise 
and experimentation for small and medium-sized businesses and start-ups; and connect 
digital transformation professionals, academia, investors, incubators, and the public sector. 
It will work to overcome technological and entrepreneurial challenges by facilitating access 
to financing for African Digital Innovation Hubs (DIHs), mutual learning and joint development 
of solutions. A digital and entrepreneurial skills academy will be created, with a special focus 
on youth and women. AEDIB’s partners include some 80 countries, of which more than 30 
have established DIHs. The goal is to establish DIHs in every country so as to form a single 
market for digital innovation in Europe and Africa. 

The EU-AU Data Flagship is another initiative to strengthen the African data economy, foster 
digital sovereignty on the African continent and link African and European digital markets. 
This partnership will facilitate investments in African data infrastructure and data technologies 
and services that can accelerate the digital transformation of the continent. It will also create 
a more enabling data economy in Africa by increasing the number of highly qualified data 
professionals, with a focus on issues related to data protection, collection, storage, analysis, 
interpretation and visualisation.

The 2019 Joint communication ‘European Union, Latin America and the Caribbean’152 
stated that digital cooperation should be made central to the relationship, assisting the 
economies  of  both  regions  to  reap  the  benefits  of  new  technologies,  while  promoting 
innovation and digitalisation. 

149. D4D Hub.

150. Commission Staff Working Document Digital4Development: mainstreaming digital technologies and 

services into EU Development Policy, SWD(2017) 157.

151. Founding Member States: Belgium, Estonia, France, Germany and Luxembourg, now also joined by 

Finland, Lithuania, Netherlands, Portugal, Spain, Sweden.

152. Joint Communication to the European Parliament and the Council, European Union, Latin America 

and the Caribbean: joining forces for a common future, 16.4.2019, JOIN(2019) 6 final.

The EU-AU Data 

Flagship is one 

initiative to strengthen 

the African data 

economy, foster 

digital sovereignty 

on the African 

continent and link 

African and European 

digital markets.

92

The BELLA programme, launched in 2016 and implemented through 2022, is providing 
for the long-term interconnectivity of European and Latin American research and education 
communities. To  significantly  enhance the  ability of  researchers and academics across 
the two regions to collaborate together, BELLA-S aimed to meet the transatlantic data-
sharing needs of the European and Latin American research and education communities. 
BELLA-S concluded successfully in 2021 with the operationalisation of the EllaLink submarine 
transatlantic cable. The territorial section of the programme (BELLA-T) will complete the 
terrestrial optical fibre network infrastructure of RedCLARA, thus significantly improving the 
Latin American research and education backbone (to be fully completed in 2022).

The Joint Communique of the EU27 - Latin America and Caribbean Informal Ministerial 
Meeting (Berlin 2020) highlighted the progress on BELLA, underscoring the potential of a 
bi-regional Digital Alliance now expected to be launched in 2022 and supported by ODA.

The  EU  and  11  Member  States  (Austria,  Belgium,  Czech  Republic,  Germany,  Estonia, 
Finland, France, Hungary, Lithuania, Portugal and Slovenia) reported more than 70 actions 
taken between 2018 and 2020 to support sustainable development in developing countries 
through use of digital technology.

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

Science, 

technology, 

innovation and 

digitalisation

Science, 

technology, 

innovation and 

digitalisation

Science, 

technology, 

innovation and 

digitalisation

Science, 

technology, 

innovation and 

digitalisation

Science, 

technology, 

innovation and 

digitalisation

8.2 Digitalisation

2015-2030

Continue to support information and commu-
nication technologies in developing countries 
as powerful enablers of inclusive growth and 
sustainable development.

6 u

8.2 Digitalisation

2015-2030

8.2 Digitalisation

2015-2030

8.2 Digitalisation

2015-2030

8.2 Digitalisation

2015-2030

Support digital entrepreneurship, including 
for MSMEs, to develop locally relevant con-
tent and promote innovation and decent job 
creation, as well as digital literacy and skills 
to empower people.

Support enabling environments for the digital 
economy by enhancing free, open and 
secure connectivity and removing obstacles 
to unleash its full potential for sustainable 
development.

Increase significantly access to information 
and communications technology and strive 
to provide universal affordable access to the 
Internet in LDCs by 2020.

Work on better mainstreaming digital 
solutions in development and promoting 
the use of digital technologies in 
a range of priority areas (such as 
e-governance, agriculture, education, 
water management, health and energy)

7

7

6

7 u

Effort and Progress  
Consistent effort 7  Commitments likely to be met u      
Minimal effort 6 Commitments not likely to be met  u

93

Chapter 9   

Data Monitoring and Follow-up 

Accurate and timely data are essential to the design of better policies and actions.

This chapter reviews the efforts made by the EU and its Member States on three fronts:

•  supporting and participating in the global SDG indicator framework, 

•  providing relevant data on financing for development in a user-friendly manner, 

•  enhancing partner countries’ capacity to collect meaningful data in a timely fashion.

The contribution of the EU and its Member States  
to the global SDG indicator framework 

The  global  SDG  indicator  framework, 
developed by the Inter-Agency  and Expert 
Group on the Sustainable Development Goal 
Indicators (IAEG-SDGs), was adopted by the 
UN General Assembly in July 2017. 

The  EU  and  its  Member  States  contribute 
to the Global SDG Indicator Framework by 
participating  in  the  IAEG-SDGs  meetings 
at the UN (Denmark, Hungary, Ireland, Italy 
and Sweden are currently members of this 
group) and by providing financial support for 
the annual publication of the SDG Index and 
Dashboards.

The  Sustainable  Development  Goals 
Reports have been published annually by the 
UN since 2015. Considerable progress has 
been made on the availability of internationally 
comparable data on the SDGs. The number 
of  indicators  measured  in  the  global  SDG 
database grew from 115 in 2016 to around 
160 in 2019 and 211 in 2021 (UN, 2021, p.5).

Most Relevant SDG Goals  
and Targets 

17.18: By 2020, enhance capacity-building 
support to developing countries, including 
for  least  developed  countries  and  small 
island  developing  States,  to  significantly 
increase  the  availability  of  high-quality, 
timely  and  reliable  data  disaggregated 
by  income,  gender,  age,  race,  ethnicity, 
migratory  status,  disability,  geographic 
location and other characteristics relevant 
in national contexts

17.19: By 2030, build on existing initiatives 
to develop measurements of progress on 
sustainable development that complement 
gross  domestic  product,  and  support 
statistical capacity-building in developing 
countries

To follow  up  on  the SDG commitments, the EU and its Member  States  produce a joint 
synthesis report on the new Consensus, including the impact of their actions in support 
of the 2030 Agenda in developing countries. The first report was published in May 2019153. 
Future reports will be presented to the High-level Political Forum (HLPF) every four years, 
with the next one due in 2023. The joint synthesis report should be integrated as part of 
broader EU reporting on SDG implementation through internal and external action to be 
presented at the 2023 HLPF. The Investing in Sustainable Development Report focussing 
on the means of implementation also feeds into the joint synthesis report.

153. Report from the Commission, Supporting the Sustainable Development Goals across the world: The 

2019 Joint Synthesis Report of the European Union and its Member States, COM(2019) 232 final.

94

The EU Aid Explorer 

allows users to find 

comprehensive 

aggregate data as well 

as detailed information 

on international 

development projects 

funded by the EU and 

its Member States.

Providing relevant financing-for-development data  
in a user-friendly manner

The EU and its Member States make a substantial contribution to sustainable development 
statistics through tools that make access to more user-friendly data.

The EU Aid Explorer allows users to find comprehensive aggregate data as well as detailed 
information on international development projects funded by the EU and its Member States. 
The  platform  does  not  alter  or  interpret  the  data  in  any  way.  It  is  built  from  European 
Commission data and open data furnished by EU Member States to the OECD Creditor 
Reporting System and the International Aid Transparency Initiative. Data providers are the 
European Commission (both the EU budget and the European Development Fund), EU Trust 
Funds, the European Investment Bank and EU Member States. 

The European Union also publishes infographics on official development assistance (ODA) 
and sustainable development. These provide a snapshot of financing for development 
resource flows for each partner country, mapping Team Europe’s financial contribution in 
particular (see examples in Annex 3) and are available online154.

The  EU  is  committed  to  accurate  measurement  of  the  full  spectrum  of  financing  for 
development and particularly to the measure of total official support for sustainable 
development (TOSSD)155, which aims to measure all resources for the SDGs, beyond the 
flows captured in ODA (e.g. non-concessional flows, resources mobilised from the private 
sector, support from emerging donors, etc.). The measure has been developed and is being 
fine-tuned by a task force of statisticians and development policy makers from recipient 
and provider countries (including six EU Member States) and international organisations. 
It is co-chaired by the European Commission and South Africa, with the OECD secretariat 
providing technical support. 

The TOSSD task force finalised the first version of its reporting instructions in June 2019. Its 
first data survey demonstrated that reporting on TOSSD is feasible and worth undertaking. 
TOSSD is now recognised as a data source for SDG indicator 17.3.1 and has been adopted 
by the UN Statistical Commission.

TOSSD data, collected and published for the first time in 2021, covered flows for the year 
2019, increasing transparency on all officially supported resources for the SDGs, including 
South-South cooperation, support for global public goods such as vaccine research and 
climate  mitigation,  and  private  finance  mobilised  by  official  interventions. The  first  real 
TOSSD reporting was a success: 87 bilateral and multilateral reporters participated in the 
exercise, including all but five EU Member States156 and ten entities that had never before 
reported their development finance statistics (including Chile, Costa Rica, Indonesia, Nigeria 
and several UN agencies). The EU has put considerable effort into the data collection and 
reporting efforts, striving to provide as comprehensive a picture as possible. 

EU and Member States’ progress on financing for development commitments (2018-2020)

Area

Section

Deadline

Commitments

Effort

Progress

International 

4.1 Official support 

development 

and development 

2015-2030

cooperation

assistance

Support initiatives to better measure the full 

spectrum of financing for development, such 

as Total Official Support for Sustainable 

7

Development (TOSSD).

Effort and Progress  
Consistent effort 7

Figure 9.1 shows the findings of the 2020 exercise covering the year 2019. The EU and 
its Member States provided the largest share of total official assistance for sustainable 

154. European Union, Joint Programming & Joint Implementation.

155. Total Official Support for Sustainable Development.

156.  i.e. Bulgaria, Czech Republic, Germany, Malta, and the Netherlands.

95

development, with a total of EUR 82 billion (even though five Member States did not participate 
in the 2020 TOSSD reporting exercise). This figure compares favourably with a collective 
ODA of EUR 58 billion in the same year from the EU and its 27 present Member States. By 
2021, nearly all the ODA commitments reported by EU institutions include information on the 
relevant SDGs, well above the average reporting rate across OECD. Most of the EU and its 
Member States’ TOSSD falls under Pillar II (global and regional), while its Pillar I contributions 
(cross-border flows) went in great part to Africa (43%).

Figure 9.1 – Results of the TOSSD 2020 data collection exercise 
EUR billion or percentage of total, 2019 data

Source: TOSSD.org.

Enhancing statistical capacity in partner countries

The capacity to produce national data and statistics is a crucial prerequisite for an effective 
SDG monitoring system at the country level. In 2020, 132 countries and territories reported 
that they were implementing a national statistical plan, with 84 having plans that were fully 
funded, including 4 of the 46 LDCs (UN, 2021, p. 61). According to UN Stats, 63% of low-
income and lower-middle income countries need additional financing for data and statistics 
to face the challenges posed by the COVID-19 pandemic.

96

Team EuropeMultilateral organisationsnon-EU DAC MembersOther bilaterals020406080Amount Committed (EUR billion)no-SDG focus 38%no-SDG focus 57%no-SDG focus 8%SDG-focus 92%SDG-focus 62%SDG-focus 43%SDG-focus 98%82765212TOSSD pillar I: cross-border resource flowsTOSSD pillar II: Regional and global expendituresMultilateralorganisationsnon-EU DACMembersTeam EuropeOther bilateralsTeam Europenon-EU DACMembersMultilateralorganisationsOther bilaterals020406080Amount Committed (EUR ..23%29%43%38%41%91%70403211501260RegionOceaniaEuropeAmericaAfricaAsiaDeveloping countries, unspecifiedTOSSD pillar I: cross-border resource flowsTOSSD pillar II: Regional and global expendituresMultilateralorganisationsnon-EU DACMembersTeam EuropeOther bilateralsTeam Europenon-EU DACMembersMultilateralorganisationsOther bilaterals020406080Amount Committed (E..100%100%81%53%44%100%100%68%31%70403211501260Financing arrangement - nameUnspecifiedBLENDED FINANCECO-FINANCING ARRANGEMENT..ISLAMIC FINANCEBased on data from EU Aid Explorer, the EU and its Member States disbursed EUR 110 
million over the period 2018-2020 to more than 50 partner countries for statistical capacity 
building. EU institutions are among the largest providers of funding for data and statistics, 
strengthening partner country capacities to produce and disseminate statistics and thereby 
enhancing accountability. Support focuses in particular on statistics for key economic and 
societal variables. The EU and its Member States contribute to global and multilateral initiatives 
such as the IMF’s Data for Decisions Fund157 and the PARIS21 consortium (Partnership in 
Statistics for Development in the 21st Century). It has also developed some 50 projects to 
support statistical capacity in partner countries.

The European Commission’s statistical office, Eurostat, is supporting the quality, reliability 
and harmonisation of official statistics in Africa at the national, regional and continental 
levels. Eurostat continues to support the development and use of statistical tools, including 
guidelines on statistical cooperation, tools to support compilation of national accounts, trade 
statistics and the assessment of national statistical systems. During the years 2018-2020, 
Eurostat  supported  the  use of statistical tools in Africa by  adapting them  to the African 
context (Snapshot), conducting workshops to support their implementation (by ERETES, 
Eurotrace and others) and providing bilateral targeted assistance. Eurostat also supported 
16 peer reviews on the continent and supported the production of continental trade statistics 
for 2017, 2019 and 2020. Eurostat maintains a regular guide to statistical cooperation and 
funded workshops and trainings that tackle the specific statistical needs of partner countries. 

In partnership with the African Union Commission, Eurostat has been implementing the Pan-
African Statistics Programme (2016-2021). For the second phase of the programme, which is 
in preparation, Eurostat and some European national statistical institutes will work together 
to provide support to the African statistical system. The objectives of the programme are to 
widen the availability of statistical information for decision-making and policy monitoring; to 
strengthen frameworks for collecting, producing and disseminating harmonised statistics 
in Africa; and to build institutional capacity for official statistics of good quality that support 
the African integration process and measure progress towards global goals. Its objectives 
build on the Strategy for the Harmonisation of Statistics in Africa158 and the African Charter 
on Statistics159. 

France, Germany, Greece, Luxembourg, Portugal, Spain and Sweden have global, regional 
and bilateral programmes on statistical capacity building.

EU institutions are 

among the largest 

providers of funding 

for data and statistics, 

strengthening partner 

country capacities 

to produce and 

disseminate statistics 

and thereby enhancing 

accountability. 

157. IMF, Data for Decision (D4D) Fund. 

158. https://au.int/en/ea/statistics/shasa 

159. https://au.int/sites/default/files/treaties/36412-treaty-african_charter_on_satistics_eng.pdf

97

Annexes

98

Annexes

Annex 1 – Summary of Progress by EU 

and Member States on Financing for 

Development Commitments, 2018-2020

Effort

7 Very strong commitment and effort 
7 Consistent effort showing a high level of engagement
6 Minimal effort
8 Hardly any or no effort 

Progress

u Commitments have been met or are close to being met

u Commitments are likely to be met in the specified timeframe if 

efforts are sustained

u Insufficient progress, but commitments may still be met if efforts 

are intensified

y Little or no progress; commitments are likely not to be met

99

Action area

Section

Deadline

Commitments

2020

For Addis  Tax  Initiative  development 
partners,  double  support  for  technical 
cooperation  in  the  area  of  DRM  by 
2020,  in  terms  of  both  disbursements 
and commitments. Official development 
assistance financing for DRM in 2015 is 
considered the baseline.

2.1 Domestic 
resource 
mobilisation 
(DRM) and 
public financial 
management 
(PFM)

Effort

7 

Progress

u

The EU and its Member States showed 
very  strong  and  consistent  efforts  in 
supporting DRM through global, regional 
and country-level initiatives, mostly using 
ODA.

EU ATI Members met this target by 2018, 
as  their  DRM  commitments  more  than 
tripled and gross disbursements doubled 
between 2015 and 2018.

7

2015-2030

H e l p   c o u n t r i e s   t o   i m p r o v e   t h e i r 
p u b l i c   f i n a n c i a l   m a n a g e m e n t   a n d 
budget  transparency,  to  set  financially 
sustainable public policies, and improve 
good governance at all levels.

The  EU  and  its  Member  States’  ODA 
for  PFM  grew  by  20%  in  real  terms 
( 2 0 1 9   p r i c e s )   f r o m   a n   a v e r a g e   o f 
E U R  6 4 1  m i l l i o n   i n   2 0 1 6 - 2 0 1 7   t o 
EUR 766 million in 2018-2019.

The need for support on PFM capacity 
remains  significant. As  shown  in  the 
2020 PEFA Global Report, only nine of 
the 31 performance indicators improved 
between 2016 and 2019. 

2.2 Illicit 
financial flows

2015-2030

3.1 Private- 
sector 
development

2015-2030

Increase the exchange of information and 
close loopholes and mismatches in the 
legal framework to limit tax evasion and 
tax avoidance.

Scale  up  international  cooperation 
against illicit financial flows.

 7

 u

The  EU  and  its  Member  States  have 
shown  consistent  efforts  in  scaling  up 
international cooperation on tax matters. 
EU  Member  States  are  either  fully  or 
largely compliant with the OECD’s Global 
Forum on Transparency and Exchange of 
Information for Tax Purposes.

Member States are politically committed 
to the Base Erosion and Profit Shifting 
framework.  They  have  activated  its 
country-by-country information exchange 
network, and most have a domestic law 
on country-by-country reporting in place.

 7

There  has  been  a  consistent  effort  by 
the  EU  and  its  Member  States  to  help 
partner countries to reduce illicit financial 
flows. That effort includes the provision 
of support for key international fora and 
the publication of a list of tax jurisdictions 
that are not cooperating.

G l o b a l   p r o g r e s s   h a s   b e e n 
insufficient.  Every  year,  an  estimated 
USD 88.6 billion, equivalent to 3.7% of 
Africa’s  GDP,  leaves  the  continent  as 
illicit capital flight, according to UNCTAD.

Facilitate  sustainable  investment  and 
private-sector  development  in  partner 
countries.

60%  of  ODA  targeting  private  sector 
development  is  provided  by  non-EU 
donors  and  multilateral  institutions, 
s h o w i n g   a   s i m i l a r l y   g o o d   l e v e l   o f 
progress outside Team Europe on this 
global commitment.

7

The  EU  and  its  Member  States  have 
made private sector development a top 
policy priority. Assistance for the purpose 
grew by two-thirds over the last decade, 
with a growing amount of ODA resources 
committed  to  it,  evidence  of  a  strong 
effort.  Complementing  ODA,  the  EU 
and its Member States have mobilised a 
significant amount of private investment 
in partner countries.

 7

Support policies aimed at improving the 
regulatory  environment  for  the  private 
sector.

The EU and its Member States’ efforts 
to support improvements of the business 
environment  in  partner  countries  have 
been consistent, notably in the regulatory 
environment for the private sector.

85% of policy-based lending to improve 
the  regulatory  environment  for  the 
private sector comes through multilateral 
organisation. This global commitment is 
likely to be met.

 6

Provide micro, small, and medium-sized 
enterprises  and  the  poor  with  greater 
access to finance.

Even  though  the  EU  and  its  Member 
S t a t e s   h a v e   m a n y   p r o g r a m m e s 
supporting access to credit by MSMEs, 
amounts  have  been  relatively  small. 
Progress in this area has been limited.

Global  progress  has  been  insufficient. 
Access  to  credit  by  MSMEs  stagnated 
o v e r   t h e   p e r i o d   2 0 1 4 - 2 0 1 9   a s   a 
percentage  of  GDP  in  lower-middle-
income  countries.  The  percentage 
declined  in  low-income  and  upper-
middle-income countries.

 6

 u

3.2 Remittances

2030

Reduce the average cost of remittance 
transactions  to  less  than  3%  by  2030, 
with no corridor having costs greater than 
5%,  and  encourage  efforts  to  channel 
remittances into productive investments.

Efforts have been limited to legislation 
and transparency, leading to a modest 
reduction of 2 percentage points since 
2015 to 5.8% in Q3 2021.

Progress  has  been  insufficient,  as 
remittance costs in the EU remain well 
above the 2030 target of 3%.

3.3 Sustainable 
business

2015-2030

Support responsible business practices 
and responsible management of supply 
chains.

 7

The  EU  and  its  Member  States  are 
s u p p o r t i n g   t h e   u s e   o f   r e s p o n s i b l e 
business practices along supply chains 
through policies on human rights, trade 
and responsible value chains, as well as 
environmental, social, and governance 
d i s c l o s u r e   r e q u i r e m e n t s   f o r   l a r g e 
financial and non-financial corporations 
in the EU.

Similar support is provided by non-EU 
countries.  This  global  commitment  is 
likely to be met.

A:  
Domestic 
public 
resources

B:  
Domestic and 
international 
private 
business 
and finance

100

Action area

Section

Deadline

Commitments

Effort

 7

Achieve collectively the target of 0.7% 
ODA/GNI by 2030.

2030

There has been some consistent effort 
towards reaching the 0.7% target, but it 
is insufficient. 

Progress

 u

Progress has been insufficient. Still, the 
EU  and  its  Member  States  increased 
their  ratio  of  ODA  to  gross  national 
income (GNI) to 0.5% in 2020, marking 
a turn in the previousdeclining trend sinin 
followingthe peak in 2016-19.

2020

Provide to the least-developed countries 
(LDCs)  between  0.15  and  0.20%  of 
collective ODA/GNI in the short term. 

While the EU and its Member States are 
allocating more ODA to LDCs than other 
donors, the ratio to GNI remained steady 
in 2019 (0.10%)

Progress has been insufficient, as 0.10% 
is significantly below the 2020 short-term 
target (0.15%). 

8

y

4.1 Official 
support and 
development 
assistance

2030

Provide at least 0.20% by 2030.

8

y

While the EU and its Member States are 
allocating more ODA to LDCs than other 
donors, the ratio to GNI remained steady 
in 2019 (0.10%)

The gap between the present level and 
the 2030 target widened.

Reverse the decline in the share of ODA 
going to LDCs.

The EU and its Member States introduced 
policy  changes  that  are  conducive  to 
further increases over time.

This  commitment  has  been  met.  The 
proportion of ODA going to LDCs grew 
by  4%  from  one-fifth  in  2016  to  about 
one-fourth (24%) between 2015 in 2019.

 7

u

2015-2030

 7

C:  
International 
development 
cooperation

Support  initiatives  to  better  measure 
t h e   f u l l   s p e c t r u m   o f   f i n a n c i n g   f o r 
development,  such  as  Total  Official 
Support  for  Sustainable  Development 
(TOSSD).

The EU and its Member States have been 
instrumental in developing the TOSSD 
statistical  measure  and  have  largely 
embraced TOSSD  as  a  new  statistical 
framework for reporting on support for 
the SDGs. 

TOSSD  is  now  recognised  as  a  data 
source  for  SDG  indicator  17.3.1  and 
has been adopted by the UN Statistical 
Commission. Ensuring that even more 
development providers report will further 
improve the success of the measure. 

 7

u

4.2 Development 
effectiveness

2015-2030

I m p r o v e   o w n e r s h i p ,   t h e   f o c u s   o n 
results, predictability, forward planning, 
transparency,  transaction  costs  and 
knowledge sharing.

The  EU  and  its  Member  States  have 
s h o w n   d e t e r i o r a t i n g   p e r f o r m a n c e 
on  development  effectiveness,  with 
d e c l i n i n g   r a t i n g s   f r o m   t h e   G l o b a l 
Partnership  for  Effective  Development 
Co-operation.

P r o g r e s s   h a s   b e e n   i n s u f f i c i e n t . 
Performance  in  the  following  areas 
worsened: short-term predictability; the 
use  of  indicators  drawn  from  partner 
c o u n t r i e s ’  r e s u l t s   f r a m e w o r k s   o r 
PFM  systems;  involvement  of  partner 
governments in project evaluations; and 
transparency. At  the  same  time,  mid-
term  predictability,  joint  programming 
and untied aid improved.

7

u

Mobilise additional financial resources 
for  developing  countries  from  multiple 
sources.

The average amounts mobilised by the 
EU and its Member States from its the 
private sector, as measured by OECD-
DAC,  almost  doubled  in  2018-2019 
compared to the previous three years.

T h i s   t a r g e t   i s   d i r e c t i o n a l   a n d   n o t 
quantified.  The  upward  direction  of 
progress  made  to  date  permits  the 
conclusion  that  this  commitment  has 
been met.

 7

 u

4.3 ODA as 
a catalyst

2015-2030

Contribute  to  the  set-up  of  innovative 
finance  facilities  aimed  at  supporting 
i n v e s t m e n t s   i n   p a r t n e r   c o u n t r i e s , 
i n c l u d i n g   i n   i n f r a s t r u c t u r e ,   c l e a n 
technology and energy.

I n n o v a t i v e   f i n a n c e   m e c h a n i s m s 
mobilised  close  to  EUR 10 billion  of 
additional financial resources for the EU 
and its Member States in 2020, almost 9 
times the amount generated in 2019 and 
close to 15% of EU ODA in 2020.

Contributions  to  the  establishment  of 
facilities  were  substantial  enough  that 
this commitment is likely to be met.

I m p l e m e n t   i n n o v a t i v e   f i n a n c e 
mechanisms, instruments and modalities 
w h i c h   d o   n o t   b u r d e n   d e v e l o p i n g 
countries.

The EU and its Member States were also 
able to mobilise EUR 5 billion through a 
mix of guarantees, investments, credit 
lines and collective investment vehicles.

Implementation of innovative instruments 
w a s   s u b s t a n t i a l   e n o u g h   t h a t   t h i s 
commitment is likely to be met.

 7

 u

101

Action area

Section

Deadline

Commitments

Effort

 7

Progress

2020-2025

Contribute  to  the  collective  goal  of 
mobilising USD 100 billion annually by 
2020 and through to 2025 from a wide 
variety of sources.

In  2019,  the  EU  reported  an  amount 
of  EUR  21.9  billion  (USD  25  billion), 
representing  30.8%  of  total  annual 
climate finance mobilised globally.

T h e   s u m   o f   U S D  7 9 . 6  b i l l i o n   w a s 
mobilised  globally  in  2019.  While  the 
target was probably not met in 2020, the 
OECD projects it will be met by 2023.

 6

 u

4.4.1 Climate 
finance

2015-2030

Provide  balanced  support  for  climate 
mitigation and adaptation in developing 
countries.

Climate  adaptation  received  49%  of 
the ODA grants for climate finance that 
the EU and its Member States made in 
2018-2019.

2020

Spend at least 20% of the EU budget on 
climate action by 2020.

t h e   2 0 1 4 - 2 0 2 0   p e r i o d , 
F o r  
EUR 216  billion  (20.15%)  of  the  EU 
budget was spent on climate action. 

7

 7

Climate adaptation is the most pressing 
n e e d   o f   d e v e l o p i n g   c o u n t r i e s   b u t 
received only 27% of global ODA support 
for  climate  finance  in  2018. The  EU’s 
progress has therefore been better than 
that of the larger pool of donors.

u

The commitment has been met.

4.4.2 Sustainable

energy

2015-2030

Widen access to energy, increase energy 
efficiency,  and  step  up  the  generation 
o f   r e n e w a b l e   e n e r g y   t o   a c h i e v e   a 
sustainable  balance  between  energy 
production and consumption.

The  EU  and  its  Member  States  have 
provided a consistent level of funds for 
sustainable energy (EUR 4 to 5 billion a 
year between 2014 and 2019).

Access to energy in developing countries 
grew  from  82.7%  in  2014  to  88.2%  in 
2019. Indicators on energy efficiency and 
renewable energy generation worsened.

C: International 
development 
cooperation
(cont’d)

4.4.3

Biodiversity

Support the conservation and sustainable 
m a n a g e m e n t   a n d   u s e   o f   n a t u r a l 
resources;  support  the  conservation 
and sustainable use of biodiversity and 
ecosystems

2015-2030

4.5 Strengthening 
resilience

2015-2030

Strengthen  disaster  resilience  and 
preparedness  through  financing  and 
policy reform.

Promote social inclusion and cohesion 
and continue to support partner countries 
in their efforts to build strong, resilient 
healthcare systems of good quality.

4.6 Human 
development

2015-2030

 7

The  EU  and  its  Member  States  have 
shown significant effort in policy-making, 
with  the  EU  renewing  its  biodiversity 
strategy and enforcing policies against 
illegal logging and wildlife trafficking. It 
has  also  doubled  its  ODA  support  for 
biodiversity,  meeting  the Aichi  targets 
every year between 2015 and 2019.

ODA  for  biodiversity  provided  by  non-
EU donors and multilateral institutions, 
was not only smaller than ODA from the 
EU and its Member States (40% vs 60% 
of total in 2019) but has also declined 
between 2015 and 2019,

 7

The  EU  and  its  Member  States  have 
made  consistent  efforts  in  providing 
ODA for disaster risk reduction and multi-
hazard response preparedness. Support 
increased from EUR 271 million in 2015 
to EUR 410 million in 2019, almost twice 
the 2010 level in real terms. The EU and 
its Member States have also supported 
multiple  actions  on  resilience,  both  at 
global and country levels.

 6

There are several examples of the EU 
and its Member States promoting social 
inclusion  and  cohesion.  One  is  the 
development  of  an  ‘Inequality  Marker’ 
to  assess  EU  contribution  to  reducing 
inequality in partner countries. Also, in 
countries where inequality is significant, 
Team Europe ‘equality flagship’ initiatives 
were set up.

ODA  for  disaster  risk  reduction  and 
multi-hazard  response  preparedness 
from non-EU bilateral donors increased 
f r o m   E U R  5 3 9  m i l l i o n   i n   2 0 1 5   t o 
EUR 850 million in 2019. ODA for the same 
purposes from multilateral organisations 
declined from EUR 1,652 million in 2015 
to EUR 1,405 million in 2019.

Promotion  of  social  inclusion  is  being 
p u r s u e d   g l o b a l l y   t h r o u g h   m a n y 
programmes managed by key multilateral 
organisations and funded by their own 
resources  as  well  as  by  EU  and  non-
EU donors.

Allocate at least 20% of ODA to social 
inclusion  and  human  development, 
including  health,  education  and  social 
protection.

The EU and its Member States allocated 
EUR 8.2 billion,  or  13%  of  their  ODA 
commitments to human development in 
2019, a real-term rise of more than 70% 
since 2015.

Progress has been insufficient. ODA for 
human development in 2019 remained 
at 13% of total ODA, well below the 20% 
goal. Regarding the EU budget, the 20% 
target has been met as of 2018.

 7

u

102

Action area

Section

Deadline

Commitments

Significantly  increase  world  trade  in  a 
manner consistent with the Sustainable 
Development Goals, particularly exports 
from  the  LDCs  and  other  developing 
countries, with a view towards doubling 
their  share  of  global  exports  by  2020, 
as stated in the Istanbul Programme of 
Action.

Effort

 7

Progress

 u

The  EU  has  become  the  main  export 
market  for  LDCs,  benefitting  from  the 
EU’s  extensive  system  of  duty-  and 
quota-free market access for LDCs.

Progress  towards  doubling  the  share 
of LDC exports in EU imports has been 
insufficient,  as  the  latter  remained  at 
about 2% from 2010 to 2020.

D: International 
trade

5. International 
trade

2015-2030

7

u

Implement the Bali package, including 
ratifying  the  WTO  Trade  Facilitation 
Agreement,  introducing  simplified  and 
preferential rules for imports from LDCs; 
givingoffering preferential treatment to 
services  and  suppliers  of  services  of 
LDCs  (Services  Waiver),  and  offering 
duty- and quota-free market access to 
LDCs

The Trade  Facilitation Agreement  was 
ratified in 2015. The EU has taken steps 
to  simplify  rules  of  origin  for  goods 
imported  from  developing  countries, 
in  particular  LDCs.  In  2015,  it  notified 
the WTO of its approval of the Service 
Waiver. It has granted duty- and quota-
free market access to LDCs.

The EU has fully implemented the Bali 
package. and The commitment has been 
met.

 7

 u

Ensure  that  the  provisions  in  trade 
a g r e e m e n t s   r e l a t i n g   t o   t r a d e   a n d 
s u s t a i n a b l e   d e v e l o p m e n t   a r e 
implemented and used effectively.

A l l   E U ’s   r e c e n t   t r a d e   a g r e e m e n t s 
n e g o t i a t e d   a n d   i m p l e m e n t e d   w i t h 
p a r t n e r   c o u n t r i e s   s y s t e m a t i c a l l y 
include provisions on labour standards, 
environmental  protection  and  other 
societal issues. 

The  commitment  is  likely  to  be  met 
once  older  trade  agreements  are  re-
negotiated.

 7

Promote  Aid  for  Trade  and  facilitate 
MSME integration in global value chains. 
Allocate an increased proportion of Aid 
for Trade to LDCs.

The EU and its Member States increased 
their Aid for Trade from EUR 16.1 billion 
in  2015  to  EUR 17.9 billion  in  2019  in 
real terms, providing over 56% of global 
Aid for Trade. The share going to LDCs 
grew from 14.6% in 2015 to 15% in 2019.

u

The commitment is being met.

E: Debt 
and debt 
sustainability

6. Debt and debt 
sustainability

2015-2030

Assist developing countries in reaching 
long-term  debt  sustainability  through 
coordinated  policies  aimed  at  debt 
financing, debt relief, debt restructuring 
and sound debt management. Increase 
collaboration  between  debtors  and 
c r e d i t o r s   t o   p r e v e n t   a n d   r e s o l v e 
unsustainable debt situations.

The  EU  and  its  Member  States  have 
been  leading  global  efforts  to  manage 
debt  sustainability  for  the  poorest 
countries  and  provided  financial  and 
technical support for World Bank and IMF 
facilities set up to address the debt crisis 
exacerbated by the COVID-19 pandemic.

Because of COVID, the World Bank and 
IMF  assessed  that  almost  half  of  the 
LDCs were at high risk of debt distress 
or already in distress by 2021, showing 
deteriorating progress in this area.

 7

Improve and enhance global economic 
governance  and  arrive  at  a  stronger, 
more coherent and more inclusive and 
representative international architecture 
for sustainable development.

7.1 International 
governance

2015-2030

F:  
Systemic 
issues

7.2 Policy 
coherence

2015-2030

M a i n s t r e a m   p o l i c y   c o h e r e n c e   f o r 
sustainable development across all three 
dimensions of sustainable development.

Progress  in  the  reform  of  the  UN  and 
Bretton  Woods  institutions  has  been 
limited;  developing  countries  are  still 
u n d e r - r e p r e s e n t e d   i n   i n t e r n a t i o n a l 
financial institutions.

 7

The EU and its Member States have been 
the largest contributor to the multilateral 
system  and  the  largest  provider  of 
c o r e   c o n t r i b u t i o n s   t o   m u l t i l a t e r a l 
organisations  for  the  entire  period 
under  review,  showing  consistency  of 
effort. The  EU  and  its  Member  States 
have  also  successfully  advocated  for 
reforms  of  the  UN  and  Bretton  Woods 
institutions (IMF and World Bank) aimed 
at a more inclusive global governance. 
Those reforms are finally underway, and 
commitments  in  this  area  are  likely  to 
be met.

 6

 u

The  EU  and  its  Member  States  have 
i n s t i t u t i o n a l i s e d   i t s   A d d i s   A g e n d a 
c o m m i t m e n t s   i n t o   n a t i o n a l   S D G 
strategies  and  polices.  In  so  doing, 
they  have  used  policy  coherence  for 
sustainable development as a means of 
implementation.

T h e   l a c k   o f   p r o p e r   b a s e l i n e s   a n d 
indicators to measure policy coherence 
for  sustainable  development  makes 
monitoring and managing performance 
on this front very challenging.

103

 
Action area

Section

Deadline

Commitments

Effort

 7

2015-2030

Continue  investing  in  research  and 
development  in  and  for  developing 
countries, including the enhancement of 
national innovation systems.

The  EU  and  its  Member  States  are 
the second-largest provider of ODA for 
science,  technology  and  innovation  to 
developing  countries,  reaching  almost 
EUR 1 billion in 2019.

8.1 Science, 
technology and 
innovation

Expand  substantially  the  number  of 
s c h o l a r s h i p s   a v a i l a b l e   g l o b a l l y   t o 
developing countries by 20220.

2020

  7

By a wide margin, the EU, collectively, is 
the world’s largest source of scholarships 
for students from developing countries. 
EU spending in this area grew by 45% 
in real terms between 2014 and 2019.

The  EU  and  its  Member  States  are 
the second-largest provider of ODA for 
science,  technology  and  innovation  to 
developing  countries,  reaching  almost 
EUR 1 billion in 2019.

Progress

u

The commitment being met.

 u 

The commitment is likely to be met.

G:  
Science, 
technology, 
innovation and 
digitalisation

8.2 Digitalisation

2015-2030

 6

 u

C o n t i n u e   t o   s u p p o r t   i n f o r m a t i o n 
and  communication  technologies  in 
d e v e l o p i n g   c o u n t r i e s   a s   p o w e r f u l 
e n a b l e r s   o f   i n c l u s i v e   g r o w t h   a n d 
sustainable development.

The EU and its Member States provided 
on average of EUR 110 million in ODA 
for  information  and  communication 
technology during the period 2017-2019, 
representing only 0.2% of total ODA in 
2019. 

Data  show  that  the  amounts  involved, 
e v e n   i f   g r o w i n g   r a p i d l y,   r e m a i n 
insufficient.

 6

I n c r e a s e   s i g n i f i c a n t l y   a c c e s s   t o 
i n f o r m a t i o n   a n d   c o m m u n i c a t i o n s 
technology and strive to provide universal 
affordable access to the Internet in LDCs 
by 2020.

Given  the  limited  support  provided  as 
indicated above, the EU contribution to 
the goal has been minimal. 

 7

 u

Work  on  better  mainstreaming  digital 
solutions in development and promoting 
t h e   u s e   o f   d i g i t a l   t e c h n o l o g i e s   i n 
a  range  of  priority  areas  (such  as 
e-governance,  agriculture,  education, 
water management, health and energy).

In December 2020, the EU launched three 
flagship initiatives to ensure a strong and 
unified European voice to promote EU 
values, standards and strategic interests 
in  the  digital  sphere. Those  initiatives 
are the Digital4Development (D4D) Hub, 
the African European Innovation Bridge 
(AEDIB) and the EU-AU Data Flagship.

While the financial amounts provided for 
some  aspects  of  this  commitment  are 
still too low, the recent increase in funds 
for digitalisation makes this commitment 
likely to be met.

 7

Support enabling environments for the 
digital economy by enhancing free, open 
and  secure  connectivity  and  removing 
obstacles to unleash its full potential for 
sustainable development.

The  EU  and  several  Member  States 
(e.g.  Finland,  France  and  Germany) 
stress a human rights–based approach 
to  innovation  and  digital  development 
and target positive impacts on the lives 
of people living in vulnerable situations.

Support for an enabling environment for 
the  digital  economy  has  been  growing 
over time and is often funded by private 
donors within and outside the EU. This 
commitment is likely to be met.

S u p p o r t   d i g i t a l   e n t r e p r e n e u r s h i p , 
including for MSMEs, to develop locally 
relevant content and promote innovation 
and decent job creation, as well as digital 
literacy and skills to empower people.

 7

The EU and 11 Member States (Austria, 
Belgium,  Czech  Republic,  Germany, 
Estonia,  Finland,  France,  Hungary, 
L i t h u a n i a ,   P o r t u g a l   a n d   S l o v e n i a ) 
reported  71  actions  taken  between 
2018  and  2020  to  support  sustainable 
development  in  developing  countries 
through the use of digital technology.

Support  for  digital  entrepreneurs  has 
been  growing  over  time  and  is  often 
funded  by  private  donors  from  within 
and outside the EU. This commitment is 
likely to be met.

104

Annex 2 – Statistics on Sustainable Finance

Table 1 – Snapshot of global sustainable investing assets under management, 2016-2020 

Region

2016

2018

2020

USD  
billion

% of total

USD  
billion

% of total

USD  
billion

% of total

Europe

12,040

52.6

14,075

48.8

12,017

41.6

United States

8,723

21.6

11,995

25.7

17,081

33.2

Japan

Canada

Australia/ 
New Zealand

Africa

Latin America

474

3.4

2,180

18.3

2,874

24.3

1,086

37.8

1,699

50.6

2,423

61.8

516

721

N/A

50.6

63.2

734

418

1,200

906

N/A

N/A

37.9

Total

23,549

27.9

32,301

33.4

35,301

35.9

Source: Global Sustainable Investment Alliance (GSIA), 2021.

Table 2 – Green, social, sustainable and climate aligned bonds issued  
as of end 2020 by type of issuer

Indicator

Green

Sustain-
ability

Social

Sub- 
Total

Climate 
Aligned

Total

Total size of  
market (USD billion)

1,100

317

of which Europe

465

75

Number of issuers

1,428

178

316

103

601

1,732

913

2,646

643

n/a

643

2,207

420

2,627

Number of instruments

7,716

885

1,230

9,831

9,831

Number of countries

Number of currencies

71

42

30

33

36

25

45

33

Source: Climate Bonds Initiative database.

105

Table 3 – Sovereign GSS bonds issued through end 2020

Theme

Country 

USD billion 

Green

France

Germany

Netherlands

Belgium

Ireland

Poland

Sweden

Hungary

Lithuania

Sustainability

Non-EU Sovereign

Luxembourg

Non-EU Sovereign

Social

Non-EU Sovereign

Total

Source: Climate Bonds Initiative.

30.7

13.6

10.0

8.2

5.7

4.3

2.3

1.9

0.1

11.3

1.8

3.0

4.5

97.4

Table 4 – GSS bond issuance by developing country issuers  
or to be used for sustainable development, 2014-2020

Climate 
aligned

Total

60 

114 

 9 

325 

527 

 1 

 11 

385 

641 

Issuer

Green

Social

Sustainable

Developing countries (excluding China)

42 

  of which Sovereign

4 

4 

3 

China

130 

69 

8 

2 

 3 

  of which Sovereign

 1 

Total Developing Countries

172 

Multilateral Development Banks

 86 

73 

37 

182 

The EU and its Member States (pro-
ceeds allocated to developing coun-
tries or development cooperation)

 14 

 3 

 2 

  of which Sovereign

4 

305 

 19 

4 

Total 

272 

113 

195 

385 

965 

Source: Climate Bonds Initiative.

106

Table 5 – Proceeds from the EU and its Member States’ GSS bond issuances allocated to 
development cooperation - EUR millions, cumulative 2015-2021

Green Bonds

EU DFIs

EBRD

EIB

Germany

Federal Republic of Germany

KfW

France

AFD

Belgium

Kingdom of Belgium

Spain

ICO (Instituto de Credito Oficial)

Ireland

Republic of Ireland

SDG Bonds

Austria

OeKB

France

AFD

Social Bonds

EU DFIs

EBRD

EIB

Total

Source: ICMA database plus proceeds allocation reports.

13,982

7,517

5,211

2,306

4,156

4,156

0

2,000

2,000

211

211

93

93

5

5

2,178

178

178

2,000

2,000

2,943

2,943

2,000

943

19,104

107

Table 6 – GSS bond issuances by the EU and its Member States by type of issuer (USD million, 
2015-2021)
2017

2015

2016

2018

2019

2020

2021

Total

Type of bond/Issuer

Green bond

Sovereign

Germany

Sweden

France

Hungary

Ireland

Italy

Lithuania

Poland

Netherlands

Belgium

Agency

Agence Francaise de 
Developpement 

FMO

Instituto de Credito Oficial

KfW

Supranational

EBRD

European Investment Bank

Social bond

Supranational

Council of Europe Development 
Bank

EBRD

European Union

Agency

Agence Francaise de 
Developpement 

8.618

8.905

20.926

23.679

33.919

47.770

44.840 188.657

792

10.609

16.258

17.734

28.642

27.787 101.822

13.616

7.292

20.908

2.316

2.316

10.609

6.016

6.583

7.412

10.157

40.778

3.444

2.195

2.234

100

2.333

5.638

10.238

10.238

130

2.934

2.276

6.680

24

1.243

5.531

155

4.311

9.614

5.531

792

4.060

3.049

5.022

2.493

10.104

11.407

9.120

45.254

874

578

1.095

4.060

4.557

172

4.385

1.138

3.049

5.065

712

4.353

570

4.148

5.295

554

4.741

1.774

532

532

1.915

4.928

167

4.761

1.278

707

614

93

2.546

500

590

9.722

7.722

1.671

6.051

605

1.757

8.514

40.451

7.933

41.581

60

5.787

7.873

35.794

500

561

9.043

6.081

2.452

3.629

1.963

56.022

64.992 127.737

560

51.555

64.157 117.511

560

1.596

1.647

4.950

3.250

704

4.046

46.708

61.806 108.515

1.138

570

651

571

554

2.542

554

849

849

313

276

276

37

37

Instituto de Credito Oficial

1.138

570

Financial Institution

Cassa depositi e prestiti Spa

European Bank for 
Reconstruction and 
Development

571

651

590

590

Sustainability bond 

534

293

589

1.169

Supranational

EBRD

European Investment Bank

Agency

Agence Francaise de 
Developpement 

FMO

Nederlandse Financierings-
Maatschappij voor 
Ontwikkelingslanden NV - FMO

Sovereign

Luxembourg

Slovenia

Financial Institution

Cassa depositi e prestiti Spa

534

293

589

534

293

589

581

581

588

588

2.000

542

1.925

1.925

6.026

2.000

4.026

4.200

3.961

239

836

597

239

11.468

4.850

19.216

5.347

1.832

8.037

33

5.314

3.457

1.832

1.825

33

8.004

6.734

2.361

1.825

4.185

548

548

1.777

1.777

888

888

1.193

1.193

2.000

548

2.970

1.777

1.193

1.476

1.476

Total

10.289

9.769

23.289

26.126

36.195 115.260 114.683 335.610

Source: Environmental Finance Database.

108

Table 7 – GSS issuances by type of issuer and SDG alignment for all countries 
and developing countries (percent)

Green

Social

Sustainable

Type of issuer

Agency

Corporate

Financial Institution

Municipal

Sovereign

Supranational

SDG alignment

% aligned

Goal 1: No poverty

Goal 2: No hunger

Goal 3: Good health 
and well-being

Goal 4: Quality education

Goal 5: Gender equality

Goal 6: Clean wa-
ter and sanitation

Goal 7: Affordable and 
clean energy

Goal 8: Decent work and 
economic growth

Goal 9: Industry, innova-
tion and infrastructure

Goal 10: Reduced inequalities

Goal 11: Sustainable cit-
ies and communities

Goal 12: Responsible con-
sumption and production

Goal 13: Climate action

Goal 14: Life below water

Goal 15: Life on land

Goal 16: Peace, justice 
and strong institutions

Goal 17: Partner-
ships for the goals

All

20

34

23

7

8

9

All

34

2

3

4

4

2

6

14

5

11

3

14

9

12

3

6

1

1

Dev.

6

39

51

1

4

1

2018

Dev.

6

1

4

2

1

0

13

18

2

11

1

18

14

11

0

1

0

1

All

36

5

17

3

2

37

All

38

2

2

4

2

2

5

17

6

11

2

16

7

13

3

5

1

2

Dev.

All

Dev.

2019

3

2

56

14

26

0

Dev.

14

2

1

4

2

0

7

27

12

7

2

16

5

7

0

7

0

0

9

14

18

17

1

41

All

64

5

0

16

3

1

5

13

5

8

4

15

5

11

2

5

0

0

2020

1

28

48

1

17

5

Dev.

25

5

1

5

1

0

10

12

8

10

6

17

6

8

3

8

0

0

Source: Environmental Finance Database.

109

Figure 1 – GSS bonds issued by or for developing countries 

USD billion or percentage, current prices

Source: Environmental Finance Database. 

110

Developing Countries (excl.China)ChinaMDBsTeam EuropeGreenSocialSustainableClimateAlignedGreenSocialSustainableClimateAlignedGreenSocialSustainableGreenSocialSustainable42604813032569318286371432GSS Bonds Issuances by developing country issuers or to be used for sustainable development(2014-2020)Financial InstitutionDevelopingGlobalCorporateDevelopingGlobalSovereignDevelopingGlobalAgencyDevelopingGlobalMunicipalDevelopingGlobalGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainable51%56%48%23%17%18%39%28%2%34%14%5%26%17%4%8%2%1%6%3%1%20%36%9%14%1%1%17%7%3%GSS Issuances by Type of Issuers, Developing Countries vs Global Averages, 2014-2020IndicatorTopic% aligned to SDGsDevelopingGlobalGoal 7: Affordable and cleanenergyDevelopingGlobalGoal 11: Sustainable citiesand communitiesDevelopingGlobalGoal 6: Clean water andsanitationDevelopingGlobalGoal 9: Industry, innovationand infrastructureDevelopingGlobalGoal 13: Climate actionDevelopingGlobalGoal 12: Responsibleconsumption and productionDevelopingGlobalGoal 8: Decent work andeconomic growthDevelopingGlobalGoal 15: Life on landDevelopingGlobalGoal 3: Good health andwell-beingDevelopingGlobalGoal 10: ReducedinequalitiesDevelopingGlobalGoal 1: No povertyDevelopingGlobalGoal 2: No hungerDevelopingGlobalGoal 4: Quality educationDevelopingGlobalGoal 14: Life below waterDevelopingGlobalGoal 17: Partnerships for thegoalsDevelopingGlobalGoal 5: Gender equalityDevelopingGlobalGoal 16: Peace, justice andstrong institutionsDevelopingGlobal15%51%19%14%17%15%10%5%9%9%12%9%9%6%7%5%5%5%10%4%3%3%3%4%2%1%1%3%1%2%0%1%0%1%0%0%GSS Issuances by SDG Alignment, Developing Countries vs GlobalAverages, 2014-2020Source: Environmental Finance Database. 

111

Developing Countries (excl.China)ChinaMDBsTeam EuropeGreenSocialSustainableClimateAlignedGreenSocialSustainableClimateAlignedGreenSocialSustainableGreenSocialSustainable42604813032569318286371432GSS Bonds Issuances by developing country issuers or to be used for sustainable development(2014-2020)Financial InstitutionDevelopingGlobalCorporateDevelopingGlobalSovereignDevelopingGlobalAgencyDevelopingGlobalMunicipalDevelopingGlobalGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainableGreenSocialSustainable51%56%48%23%17%18%39%28%2%34%14%5%26%17%4%8%2%1%6%3%1%20%36%9%14%1%1%17%7%3%GSS Issuances by Type of Issuers, Developing Countries vs Global Averages, 2014-2020IndicatorTopic% aligned to SDGsDevelopingGlobalGoal 7: Affordable and cleanenergyDevelopingGlobalGoal 11: Sustainable citiesand communitiesDevelopingGlobalGoal 6: Clean water andsanitationDevelopingGlobalGoal 9: Industry, innovationand infrastructureDevelopingGlobalGoal 13: Climate actionDevelopingGlobalGoal 12: Responsibleconsumption and productionDevelopingGlobalGoal 8: Decent work andeconomic growthDevelopingGlobalGoal 15: Life on landDevelopingGlobalGoal 3: Good health andwell-beingDevelopingGlobalGoal 10: ReducedinequalitiesDevelopingGlobalGoal 1: No povertyDevelopingGlobalGoal 2: No hungerDevelopingGlobalGoal 4: Quality educationDevelopingGlobalGoal 14: Life below waterDevelopingGlobalGoal 17: Partnerships for thegoalsDevelopingGlobalGoal 5: Gender equalityDevelopingGlobalGoal 16: Peace, justice andstrong institutionsDevelopingGlobal15%51%19%14%17%15%10%5%9%9%12%9%9%6%7%5%5%5%10%4%3%3%3%4%2%1%1%3%1%2%0%1%0%1%0%0%GSS Issuances by SDG Alignment, Developing Countries vs GlobalAverages, 2014-2020Annex 3 – Statistics on Trends in 

Official Development Assistance

Figure 1 – EU collective ODA as a percentage of GNI (1995-2020)

EU Collec�ve
ODA as a % of GNI (1995-2020) 

m
o
r
f

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8
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Target: 0.70

0,43 0,43

0,42

0,39

0,46

0,44

0,44

0,43 0,43 0,43

0,52

0,50

0,50

0,47

0,47

0,46

0,37 0,37

0,33 0,33

0,31 0,32

0,33

0,35 0,35 0,35

LDC Target: 0.15

0,09 0,09 0,08 0,08 0,09

0,10 0,10

0,11

0,14

0,13

0,11 0,11 0,12 0,13 0,13

0,14

0,13

0,11

0,12 0,11 0,11 0,11 0,12 0,13 0,12

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

EU Collec�ve ODA all in all

EU Collec�ve ODA to LDCs

Source: OECD DAC 

NB1: Figures are given in cash flows up to 2017 and in grant equivalents from 2018.

NB2: For each year, this graph and its aggregate and collective figures only consider those countries which were a Member State of the 
EU at the time. In particular, the EU Aggregate and Collective include the United Kingdom up to and including 2019 but not in 2020 given 
its withdrawal from the European Union taking effect on 1 February 2020.

112

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Table 2 – Financial gaps in ODA/GNI targets, by Member State

Member State

2020 ODA

EU commitment

EU financial gap

EUR  
Million

% of GNI

EUR  
Million

% of GNI

Austria

Belgium

Bulgaria

Croatia

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Latvia

Lithuania

Luxembourg

Malta

1,113

2,010

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43

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12,407

24,926

209

361

853

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35

59

395

51

Netherlands

4,703

Poland

Portugal

Romania

Slovak Republic

Slovenia

Spain

Sweden

EU Aggregate

EU Collective*

EC and EIB ODA 
(pour mémoire)

705

338

268

123

79

2,606

5,571

64,397

66,755

17,004

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0.47

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5,557

1,668

1,382

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0.33

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EUR  
Million

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% of GNI

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0.23

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0.53

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0.46

(0.14)

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0.20

G a p   b e t w e e n   2 0 2 0   E U   C o l l e c -
tive  ODA  and  collective  EU  ODA  
target (0.7%) in EUR Million

EU27  

collective target:

EU27  

collective gap:

93,090

26,336

NB1: Figures are given in grant equivalents.

NB2: The EU Aggregate and Collective do not include the United Kingdom given 

its withdrawal from the European Union taking effect on 1 February 2020.

* Including EC and EIB ODA not imputed to Member States or the UK.

Source: OECD DAC

114

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Levels (circles)-Trends (arrows)Major challengesSignificant challen..ChallengesSDG AchievementDecreasingStagnatingModerately increas..On trackData not availableLICsLMICsUMICs1: No poverty2: No hunger3: Good health and well-being4: Quality education5: Gender equality6: Clean water and sanitation7: Affordable and clean energy8: Decent work and economic growth9: Industry, innovation and Infrastructure10: Reduced inequalities11: Sustainable cities and communities12: Responsible consumption and production13: Climate action14: Life below water15: Life on land16: Peace, justice and strong institutions17: Partnerships for the goals2020 SDG dashboards (levels and trends) by income groupLICsLMICsUMICs1.74.10.40.41.31.41.01.21.51.61.82.20.92.22.03.80.54.64.44.43.00.70.21.52.03.51.92.32.70.61.71.02.10.61.02.00.80.12.21.63.43.42.72.32.41.30.42.21.41.20.6Distribution of Team Europe's ODA by SDG Target and Income Group (Commitments, EUR billion, 2018-2019)LICsODAOther official flowsLMICsODAOther official flowsUMICsODAOther official flows8.90.20.60.20.10.0Financing for Development as % share of GDP by Income Group 2018-2019201420152016201720182019202044,75151,16861,14160,50458,41157,95566,7550.440.430.380.460.420.500.49Team Europe's ODA (EUR millions 2019 prices and % of GNI) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 5 – ODA as a percentage of GNI in individual Member States (1995-2020)

NB: For all graphs, figures are given in cash flows up to 2017 and in grant equivalents from 2018.

Source: OECD DAC

Austria
ODA as a % of GNI  (1995-2020)

Target: 0.70

0,34

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Belgium 
ODA as a % of GNI  (1995-2020)

Target: 0.70

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118

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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2010

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2019

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Croa�a 
ODA as a % of GNI (2013-2020)

Target: 0.33

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2014

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0,12

0,13

2017

2018

2019

2020

119

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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ODA as a % of GNI (2005-2015 and 2018-2020)

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0,13

0,12

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0,11

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%
a
s
a
A
D
O

1,40

1,30

1,20

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

Denmark 
ODA as a % of GNI  (1995-2020)

1,04

0,96

0,97

0,99

1,01

1,06

1,03

0,96

Target: 0.70

0,84

0,85

0,81

0,80

0,81

0,82

0,91

0,88

0,85

0,83

0,85

0,86

0,85

0,75

0,74

0,72

0,72

0,72

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Estonia
ODA as a % of GNI (2004-2020)

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
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e
t
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r
g
,
7
1
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2

l

�
n
u
s
w
o
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(

I

N
G

f
o
%
a
s
a
A
D
O

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

Target: 0.33

0,20

0,10

0,00

0,08

0,09

0,08

0,05

0,10

0,10

0,10

0,11

0,11

0,13

0,19

0,14

0,15

0,16

0,16

0,16

0,17

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

121

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
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(

I

N
G

f
o
%
a
s
a
A
D
O

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

Finland 
ODA as a % of GNI (1995-2020)

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

Target: 0.70

0,30

0,31

0,33

0,32

0,31

0,33

0,32

0,31

0,35

0,35

0,37

0,54

0,55

0,53

0,53

0,54

0,55

0,59

0,46

0,44

0,40

0,39

0,44

0,42

0,47

0,42

0,36

0,20

0,10

0,00

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

France 
ODA as a % of GNI (1995-2020)

Target: 0.70

0,55

0,48

0,44

0,47

0,47

0,50

0,47

0,46

0,45

0,38

0,38

0,40

0,41

0,37

0,38

0,39

0,30

0,31

0,53

0,41

0,37

0,37

0,38

0,43

0,43

0,44

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

122

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

Germany 
ODA as a % of GNI (1995-2020)

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

Target: 0.70

0,30

0,31

0,32

0,28

0,26

0,26

0,27

0,27

0,27

0,28

0,28

0,73

0,70

0,67

0,61

0,61

0,36

0,36

0,37

0,38

0,39

0,39

0,35

0,37

0,38

0,52

0,42

0,20

0,10

0,00

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Greece 
ODA as a % of GNI (1996-2020)

Target: 0.70

0,15

0,14

0,15

0,15

0,20

0,21

0,21

0,17

0,16

0,17

0,17

0,16

0,21

0,19

0,17

0,15

0,13

0,10

0,11

0,12

0,19

0,16

0,13

0,18

0,17

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

123

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hungary 
ODA as a % of GNI  (2004-2020)

Target: 0.33

0,27

0,21

0,21

0,13

0,11

0,07

0,08

0,08

0,10

0,09

0,11

0,10

0,10

0,11

0,17

0,13

0,11

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Ireland 
ODA as a % of GNI (1995-2020)

Target: 0.70

0,59

0,54

0,55

0,54

0,52

0,51

0,47

0,46

0,40

0,39

0,39

0,42

0,38

0,32

0,32

0,32

0,31

0,32

0,31

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

0,30

0,29

0,31

0,31

0,31

0,30

0,29

0,33

0,20

0,10

0,00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

124

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

Italy 
ODA as a % of GNI (1995-2020)

Target: 0.70

0,29

0,20

0,20

0,20

0,15

0,11

0,15

0,15

0,13

0,17

0,15

0,20

0,19

0,22

0,20

0,16

0,15

0,14

0,22

0,19

0,17

0,30

0,27

0,25

0,22

0,22

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Latvia
ODA as a % of GNI (2004-2020)

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

Target: 0.33

0,20

0,10

0,00

0,06

0,07

0,06

0,06

0,07

0,07

0,06

0,07

0,07

0,08

0,08

0,09

0,11

0,11

0,10

0,10

0,12

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

125

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lithuania 
ODA as a % of GNI (2004-2020)

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

1,20

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

Target: 0.33

0,06

0,08

0,04

0,11

0,11

0,11

0,10

0,13

0,13

0,11

0,10

0,12

0,14

0,13

0,12

0,13

0,13

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Luxembourg 
ODA as a % of GNI (1995-2020)

1,04

1,05

0,97

0,97

1,06

1,00

1,00

1,03

1,03

1,00

1,00

0,98

0,95

0,92

0,89

0,86

0,77

0,78

0,79

0,79

Target: 0.70

0,70

0,65

0,66

0,55

0,44

0,36

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

126

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Malta 
ODA as a % of GNI (2009-2020)

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

Target: 0.33

0,25

0,23

0,18

0,18

0,20

0,20

0,20

0,21

0,17

0,40

0,30

0,25

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Netherlands 
ODA as a % of GNI (1995-2020)

0,81

0,81

0,81

0,80

0,79

0,84

0,82

0,81

0,80

0,82

0,81

0,81

0,80

0,82

0,81

Target: 0.70

0,73

0,75

0,71

0,75

0,67

0,64

0,65

0,62

0,60

0,59

0,59

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

127

)
8
1
0
2
m
o
r
f

l

s
t
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a
v
i
u
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e
t
n
a
r
g
,
7
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(

I

N
G

f
o
%
a
s
a
A
D
O

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

0,20

0,10

0,00

1,20

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
)
8
1
0
2
m
o
r
f

l

s
t
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a
v
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u
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n
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,
7
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(

I

N
G

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o
%
a
s
a
A
D
O

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

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n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

Poland 
ODA as a % of GNI (2004-2020)

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

Target: 0.33

0,20

0,10

0,00

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

0,07

0,05

0,09

0,10

0,08

0,09

0,08

0,08

0,09

0,10

0,09

0,10

0,15

0,13

0,14

0,14

0,14

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Portugal 
ODA as a % of GNI (1995-2020)

Target: 0.70

0,63

0,25

0,25

0,24

0,21

0,26

0,26

0,25

0,27

0,22

0,21

0,21

0,22

0,31

0,29

0,28

0,27

0,23

0,23

0,19

0,16

0,17

0,18

0,18

0,17

0,18

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

128

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
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,
7
1
0
2

l

�
n
u
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w
o
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(

I

N
G

f
o
%
a
s
a
A
D
O

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
i
u
q
e
t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

Romania 
ODA as a % of GNI (2008-2020)

Target: 0.33

0,09

0,08

0,07

0,09

0,09

0,07

0,11

0,09

0,11

0,11

0,11

0,10

0,12

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Slovenia
ODA as a % of GNI (2005-2020)

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

Target: 0.33

0,12

0,12

0,13

0,15

0,13

0,13

0,13

0,13

0,12

0,19

0,15

0,16

0,16

0,17

0,17

0,20

0,10

0,11

0,00

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

129

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Slovak Republic 
ODA as a % of GNI (2004-2020)

)
8
1
0
2
m
o
r
f

l

s
t
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I

N
G

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%
a
s
a
A
D
O

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

)
8
1
0
2
m
o
r
f

l

s
t
n
e
a
v
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u
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t
n
a
r
g
,
7
1
0
2

l

�
n
u
s
w
o
ﬂ
(

I

N
G

f
o
%
a
s
a
A
D
O

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

Target: 0.33

0,12

0,07

0,10

0,09

0,10

0,09

0,09

0,09

0,09

0,09

0,09

0,10

0,12

0,13

0,13

0,14

0,11

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Spain 
ODA as a % of GNI (1995-2020)

Target: 0.70

0,24

0,22

0,24

0,24

0,23

0,22

0,30

0,26

0,23

0,24

0,32

0,27

0,46

0,45

0,43

0,37

0,29

0,34

0,17

0,16

0,13

0,12

0,19

0,20

0,21

0,23

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

130

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sweden 
ODA as a % of GNI (1995-2020)

1,40

1,12

1,09

1,02

0,94

0,93

0,98

0,97

0,97

1,02

1,01

1,14

1,07

1,02

0,94

0,96

0,84

0,79

0,77

0,84

0,80

0,77

0,79

0,78

0,72

0,70

Target: 0.70

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

)
8
1
0
2
m
o
r
f

l

s
t
n
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a
v
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u
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n
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,
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I

N
G

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%
a
s
a
A
D
O

1,50

1,40

1,30

1,20

1,10

1,00

0,90

0,80

0,70

0,60

0,50

0,40

0,30

0,20

0,10

0,00

131

 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 4 – Regional ODA and Financing 

for Sustainable Development

Figure 1 – Africa

Mapping Team Europe Financial 
Contributions in Africa

Africa’s partners in 2019* 

33% - Team Europe

€18,836m

€10,259m

18% - World Bank

€8,909m

15% - United States

€14,090m (GRANTS)
 €4,746m (LOANS)                                                

€1,154m (GRANTS) 
€9,105m (LOANS)    

€8,909m (GRANTS)

€23,527m
Total EU / 
Member States
ODA

EU/MS
multilateral
core and 
voluntary 
contributions
€4,691m 

€18,836m

EU/Member
States together

33%

of global
bilateral flows

€6,655m

€4,699m

€3,563m

12% - EU Institutions

€5,153m (GRANTS)    
€1,502m (LOANS)    

8% - Germany

€3,396m (GRANTS)    
€1,303m (LOANS)    

6% - France

€1,740m (GRANTS)  
€1,823m (LOANS)         

€3,444m

6% - United Kingdom

€3,444m (GRANTS)  

€2,481m

€2,353m

€1,900m

€1,829m

€1,157m

4% - United Nations
€2,237m (GRANTS)  
€245m (LOANS)    

4% - Global Fund

€2,353m (GRANTS)                   

3% - Japan

€929m (GRANTS)     
€971m (LOANS)    

3% - African Development Bank 

€859m (GRANTS)     
€970m (LOANS)    

2% - United Arab Emirates

€702m (GRANTS)    
€455m (LOANS)    

EU/Member States 
funds through 
multilaterals

€595m

€220m

€152m

Bilateral funds
implemented by
multilaterals

€2,118m

The main sectors
funded by the
EU/Member
States

OTHER

RDB

WB

UN

€1,287m

€793m

€1,718m

€893m

Core and
voluntary 
contributions

€3,919m Other present EU/MS

Sweden, Netherlands, Denmark, Belgium, Italy, Ireland, 
Spain, Finland, Luxembourg, Portugal, Austria, Hungary,
Poland, Czech Republic, Slovak Republic, Greece, Malta,
Slovenia, Estonia, Lithuania, Bulgaria, Croatia, Cyprus.

*Based on ODA disbursements in the particular year.

€21,111m

€20,821m

€20,435m

€20,416m

€16,831m

€17,203m

€19,460m

€17,671m

€18,836m

€18,828m

€15,362m

€15,061m

2014

2015

2016

2017

2018

2019

13% Jobs & Growth

5% Health

9% Education

5% Water and Sanitation

9% Government, Civil 
Society and Human Rights
8% Humanitarian Nexus

8% Agriculture

7% Energy

5% General Budget 
Support
4% Transport

27% Others

Bilateral ODA trends 2014-2019 
(constant prices)

Team Europe
Non-EU Bilateral Donors

For more information contact:

European Commission services:

DG International Partnerships:
Intpa-Team-Europe-support@ec.europa.eu

DG Neighbourhood and Enlargement Negotiations:
Near-joint-programming@ec.europa.eu

European External Action Service:
ECO-FIIC-PROGRAMMING@eeas.europa.eu

Source:

OECD DAC CRS

JOINT PROGRAMMING TRACKER:
https://europa.eu/capacity4dev/joint-programming-tracker

Note: EU/MS refers to the EU and its Member States together.

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

RDBs = Regional Development Banks.

132

 
Investing in Sustainable Development 
in Africa

*

GDP €2.2tn 
GDP per capita 
Fiscal position 

€1,611
-1.69%

Population 1.3bn  

Multidimensional poverty 

0.26

€

Trade (in € bn) 

Imports of goods 
Exports of goods 

Imports of goods (EU)     
Exports of goods (EU)     

523
482

145
136

* Compared to latest year with available data

Financing for Development 
as % share of GDP

External debt stock
€751.2bn

23.4%

19%

Gross Fixed
Capital
Formation*

0.22%

2.6%

3.4%

3.6%

1.8%

Government
Tax Revenue

Other Official Flows

0.76%

0.5%

ODA  

TOSSD

0.4%

 0.8%

0.06%

FDI flows 

Remittances**

Philanthropy

Public domestic  Private domestic 

Public 
international

Private 
international

EU/MS shares

Multilaterals

25.6%

Private

44.6%

Bilateral

Short-term

18%

11.8%

Total Debt as share
of GDP 34.5%

Total Debt servicing
as share of GDP 3.1%

JOINT PROGRAMMING TRACKER:

https://europa.eu/capacity4dev/joint-programming-tracker

For more information contact:

Sources:

INTPA-SUSTAINABLE-FINANCE@ec.europa.eu

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

OECD-DAC International Development Statistics (IDS) online databases: 
(a) DAC Online and (B) Creditor Reporting System, World Bank (World Development 
Indicators), Remittances database, International Debt Statistics, Joint External Debt 
Hub, Data Help Desk, Classiﬁcation of Fragile and Conﬂict-Aﬀected Situations, UNDP 
(Human Development Report 2020, Global Multidimensional Poverty Index 2020), 
UN CDP (List of LDCs), IMF (Direction of Trade Statistics), EUROSTAT (Balance of 
Payment Statistics, EU FDI data), TOSSD data visualisation tool.

Note: EU/MS refers to the EU and Member States together
For more information on TOSSD:  www.tossd.org

*Measure of total investment in the domestic economy (overlap with FDI)
**Data on remittances from the EU is taken from KNOMAD-World Bank staff 
estimates, Bilateral Remittance Matrix 2020
Paris refers to debts to the Paris Club of creditors (22 countries)

133

 
      
 
                  
                  
 
 
      
Figure 2 – Sub-Saharan Africa

Mapping Team Europe Financial 
Contributions in Sub-Saharan Africa

Sub-Saharan Africa’s partners in 2019* 

€13,517m

EU/Member
States together

28%

of global
bilateral flows

28% - Team Europe

€13,517m

€10,234m

21% - World Bank

€8,480m

18% - United States

€11,458m (GRANTS)

€2,059m (LOANS)            

€1,146m (GRANTS) 
€9,088m (LOANS)    

€8,480m (GRANTS)

€17,900m
Total EU / 
Member States
ODA

EU/MS
multilateral
core and 
voluntary 
contributions
€4,383m 

€4,598m

€2,977m

9% - EU Institutions

€4,234m (GRANTS)  
€364m (LOANS)    

6% - Germany

€2,646m (GRANTS)  
€332m (LOANS)    

€2,888m

6% - United Kingdom

€2,888m (GRANTS)  

€2,539m

5% - France

€1,255m (GRANTS)    
€1,284m (LOANS)  

€2,321m

5% - Global Fund

€2,258m

€1,543m

€1,288m

€2,321m (GRANTS)                   

5% - United Nations
€2,019m (GRANTS)  
€239m (LOANS)     

3% - African Development Bank

€573m (GRANTS)     
€970m (LOANS)    

3% - Japan

€863m (GRANTS)     
€425m (LOANS)    

€1,031m

2% - GAVI

€1,031m (GRANTS)    

€3,403m Other present EU/MS

EU/Member States 
funds through 
multilaterals

€205m

Bilateral funds
implemented by
multilaterals

€40m

€111m

€1,633m

The main sectors
funded by the
EU/Member
States

OTHER

RDB

WB

UN

€1,246m

€639m

€1,678m

€820m

Core and
voluntary 
contributions

Sweden, Netherlands, Denmark, Belgium, Italy, Ireland, 
Luxembourg, Spain, Finland, Portugal, Austria, Poland, 
Hungary, Czech Republic, Slovak Republic, Malta, Slovenia, 
Greece, Estonia, Lithuania, Bulgaria, Cyprus, Croatia.

*Based on ODA disbursements in the particular year.

€16,110m

€16,646m

€16,249m

€16,537m

€16,089m

€17,627m

11% Humanitarian Nexus

10% Agriculture

9% Government, Civil 
Society and Human Rights 

8% Jobs & Growth

8% Education

7%  Energy
7% Health 

6% Water and Sanitation 

5% Social Protection 

5% General Budget Support

25% Others

€11,280m

€11,069m

€12,334m

€11,840m

€13,517m

€13,019m

Bilateral ODA trends 2014-2019 
(constant prices)

Team Europe
Non-EU Bilateral Donors

2014

2015

2016

2017

2018

2019

For more information contact:

European Commission services:

DG International Partnerships:
Intpa-Team-Europe-support@ec.europa.eu

DG Neighbourhood and Enlargement Negotiations:
Near-joint-programming@ec.europa.eu

European External Action Service:
ECO-FIIC-PROGRAMMING@eeas.europa.eu 

Source:

OECD DAC CRS

JOINT PROGRAMMING TRACKER:
https://europa.eu/capacity4dev/joint-programming-tracker

Note: EU/MS refers to the EU and its Member States together.

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

RDBs = Regional Development Banks.

134

 
Investing in Sustainable Development 
in Sub-Saharan Africa

*

GDP €1.5tn 
GDP per capita 
Fiscal position 

€1,358
-2.07%

Population 1.1bn  

Multidimensional poverty 

Human Development Index (UN) 
Index 

0.26

0.55

Financing for Development 
as % share of GDP

22.4%

€

Trade (in € bn) 

Imports of goods 
Exports of goods 

Imports of goods (EU)     
Exports of goods (EU)     

523
349

70
70

* Compared to latest year with available data

External debt stock
€751bn

Multilaterals

26%

Private

45%

Bilateral

Short-term

18%

12%

Total Debt as share
of GDP 35.7%

Total Debt servicing
as share of GDP 3.3%

Gross Fixed
Capital
Formation*

Government
Tax Revenue

7.47%

0.1%

0.0%

1.2%

3%

4%

3.6%

1.8%

Other Official Flows

0.6%

ODA  

TOSSD

0.4%

0.5%

0.1%

FDI flows 

Remittances**

0.01%

Philanthropy

Public domestic  Private domestic 

Public 
international

Private 
international

EU/MS shares

JOINT PROGRAMMING TRACKER:

https://europa.eu/capacity4dev/joint-programming-tracker

For more information contact:

Sources:

INTPA-SUSTAINABLE-FINANCE@ec.europa.eu

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

OECD-DAC International Development Statistics (IDS) online databases: 
(a) DAC Online and (B) Creditor Reporting System, World Bank (World Development 
Indicators), Remittances database, International Debt Statistics, Joint External Debt 
Hub, Data Help Desk, Classiﬁcation of Fragile and Conﬂict-Aﬀected Situations, UNDP 
(Human Development Report 2020, Global Multidimensional Poverty Index 2020), 
UN CDP (List of LDCs), IMF (Direction of Trade Statistics), EUROSTAT (Balance of 
Payment Statistics, EU FDI data), TOSSD data visualisation tool.

Note: EU/MS refers to the EU and Member States together
For more information on TOSSD:  www.tossd.org

*Measure of total investment in the domestic economy (overlap with FDI)
**Data on remittances from the EU is taken from KNOMAD-World Bank staff 
estimates, Bilateral Remittance Matrix 2020
Paris refers to debts to the Paris Club of creditors (22 countries)

135

 
      
 
                  
                  
 
 
 
 
      
Figure 3 – Neighbourhood

Mapping Team Europe Financial 
Contributions in Neighbourhood

Neighbourhood’s partners in 2019* 

36% - Team Europe

€8,799m

€6,499m

27% - Turkey

€5,605m (GRANTS)
€3,194m (LOANS)

€6,499m (GRANTS)

€3,309m

14% - EU Institutions

€1,912m (GRANTS)
€1,397m (LOANS)                                      

€2,919m

12% - Germany 

€2,556m

11% - United States

€2,556m (GRANTS)                          

€1,938m (GRANTS)                          
€981 m (LOANS)                                      

EU/Member States 
funds through 
multilaterals

€8,799m

EU/Member
States together

36%

of global
bilateral flows

€9,343m

Total EU / 
Member States
ODA

EU/MS
multilateral
core and 
voluntary 
contributions
€545m 

€1,345m

6% - France 

€576m (GRANTS) 
€769m (LOANS)         

€878m

4% - United Nations
€861m (GRANTS)  
€17m (LOANS)         

€838m

3% - Japan

€226m (GRANTS)                   
€612m (LOANS)         

€804m

3% - United Kingdom
€804m (GRANTS) 

€531m

€430m

€403m

2% - United Arab Emirates

€313m (GRANTS)         
€218m (LOANS)                              

2% - Arab Fund (AFESD)

€8m (GRANTS)         
€422m (LOANS)                              

2% - Kuwait 

€90m (GRANTS)                     
€313m (LOANS)                              

€154m
€67m

€20m

€77m

€54m
€61m

€353m

OTHER

RDB
WB

€1,309m

Bilateral funds
implemented by
multilaterals

UN

Core and
voluntary 
contributions

The main sectors
funded by the
EU/Member
States

€1,225m Other present EU/MS

Sweden, Italy, Spain, Denmark, Poland, Netherlands, 
Belgium, Austria, Romania, Hungary, Finland, Ireland,
Czech Republic, Luxembourg, Estonia, Portugal, 
Slovak Republic, Slovenia, Cyprus, Greece, Latvia, 
Bulgaria, Croatia, Malta.

*Based on ODA disbursements in the particular year.

€13,119m

€12,526m

€12,590m

€13,078m

€8,461m

€8,597m

€8,156m

€8,799m

€10,894m

€10,126m

€6,170m

€6,194m

15% Humanitarian Nexus

5% Water and Sanitation

14% Education

5% Transport 

12% Jobs & Growth

4% General Budget Support 

8% Government, Civil 
Society and Human Rights
6% Energy 

3% Migration, Population, 
Security, Peace
3% Urban Development

23% Others

Bilateral ODA trends 2014-2019 
(constant prices)

Team Europe
Non-EU Bilateral Donors

2014

2015

2016

2017

2018

2019

For more information contact:

European Commission services:

DG International Partnerships:
Intpa-Team-Europe-support@ec.europa.eu

DG Neighbourhood and Enlargement Negotiations:
Near-joint-programming@ec.europa.eu

European External Action Service:
ECO-FIIC-PROGRAMMING@eeas.europa.eu 

Source:

OECD DAC CRS

JOINT PROGRAMMING TRACKER:
https://europa.eu/capacity4dev/joint-programming-tracker

Note: EU/MS refers to the EU and its Member States together.

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

RDBs = Regional Development Banks.

136

                                                
                                                
 
Investing in Sustainable Development 
in Neighbourhood

GDP €973 bn 
GDP per capita 
Fiscal position 

*

€3,136
-1.06%

Population 310m  

Multidimensional poverty 

0.02

€

Trade (in € bn) 

Imports of goods 
Exports of goods 

Imports of goods (EU)     
Exports of goods (EU)     

332
244

123
104

Financing for Development 
as % share of GDP

External debt stock
€485bn

* Compared to latest year with available data

23%

18%

Gross Fixed
Capital
Formation*

0.6%

2.6%

3.58% 7%

Government
Tax Revenue

Other Official Flows

1.2%

0.4%

2.45%

ODA  

TOSSD

0.3%

1.7%

0%

FDI flows 

Remittances**

Philanthropy

Public domestic  Private domestic 

Public 
international

Private 
international

EU/MS shares

Multilaterals

22%

Private

48.4%

Bilateral

Short-term

13.4%

16.2%

Total Debt as share
of GDP 49.8%

Total Debt servicing
as share of GDP 5.8%

JOINT PROGRAMMING TRACKER:

https://europa.eu/capacity4dev/joint-programming-tracker

For more information contact:

Sources:

INTPA-SUSTAINABLE-FINANCE@ec.europa.eu

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

OECD-DAC International Development Statistics (IDS) online databases: 
(a) DAC Online and (B) Creditor Reporting System, World Bank (World Development 
Indicators), Remittances database, International Debt Statistics, Joint External Debt 
Hub, Data Help Desk, Classiﬁcation of Fragile and Conﬂict-Aﬀected Situations, UNDP 
(Human Development Report 2020, Global Multidimensional Poverty Index 2020), 
UN CDP (List of LDCs), IMF (Direction of Trade Statistics), EUROSTAT (Balance of 
Payment Statistics, EU FDI data), TOSSD data visualisation tool.

Note: EU/MS refers to the EU and Member States together
For more information on TOSSD:  www.tossd.org

*Measure of total investment in the domestic economy (overlap with FDI)
**Data on remittances from the EU is taken from KNOMAD-World Bank staff 
estimates, Bilateral Remittance Matrix 2020
Paris refers to debts to the Paris Club of creditors (22 countries)

137

 
      
 
                  
                  
 
 
 
 
      
Figure 4 – Asia-Pacific

Mapping Team Europe Financial 
Contributions in Asia-Paciﬁc

Asia-Pacific’s partners in 2019* 

€9,608m

EU/Member
States together

22%

of global
bilateral flows

22% - Team Europe

€9,608m

€8,690m

20% - Japan

€5,826m

13% - World Bank Group

€4,546m

10% - United States

€4,285m

10% - Germany

€6,524m (GRANTS)
€3,083m (LOANS)

€1,651m (GRANTS) €7,029m (LOANS)                                      

€12,097m
Total EU / 
Member States
ODA

EU/MS
multilateral
core and 
voluntary 
contributions
€2,490m 

€420m (GRANTS)
€5,406m (LOANS)                                      

€4,546m (GRANTS)                                      

€2,837m (GRANTS)                          
€1,448m (LOANS)                          

EU/Member States 
funds through 
multilaterals

€287m

€2,861m

€2,316m

€2,230m

€1,581m

7% - Asian Development Bank

€609m (GRANTS) 
€2,252m (LOANS)                          

5% - EU Institutions

€1,901m (GRANTS)  
€415m (LOANS)         

5% - United Kingdom

€2,201m (GRANTS)
€29m (LOANS)                            

4% - France

€407m (GRANTS) 
€1,175m (LOANS)                            

€1,396m

3% - Australia

€1,396m (GRANTS)                              

€1,011m

2% - United Nations

€828m (GRANTS) 
€183m (LOANS)                            

€946m

2% - Korea

€453m (GRANTS)
€493m (LOANS)                            

OTHER

RDB

WB

€566m

€443m

€1,051m

€430m

€41m

€270m

Bilateral funds
implemented by
multilaterals

€1,263m

UN

Core and
voluntary 
contributions

The main sectors
funded by the
EU/Member
States

€1,425m Other present EU/MS

Sweden, Denmark, Netherlands, Italy, Finland, Austria, 
Hungary, Belgium, Luxembourg, Spain, Poland, Ireland, 
Portugal, Czech Republic, Romania, Croatia, Slovak Republic,
Lithuania, Latvia, Bulgaria, Slovenia, Cyprus, Malta, Greece.

*Based on ODA disbursements in the particular year.

€30,474m

€20,504m

€19,981m

€21,782m

€21,593m

€21,021m

€8,165m

€8,607m

€9,018m

€10,580m

€10,872m

€9,607m

2014

2015

2016

2017

2018

2019

16% Education

6% Jobs & Growth

12% Government, 
Civil Society and Human Rights
10% Humanitarian Nexus

6% Migration, Population, 
Security, Peace
5% Agriculture

9% Energy

9% Transport

4% Environment and Forestry

4% Health

19% Others

Bilateral ODA trends 2014-2019 
(constant prices)

Team Europe
Non-EU Bilateral Donors

For more information contact:

European Commission services:

DG International Partnerships:
Intpa-Team-Europe-support@ec.europa.eu

DG Neighbourhood and Enlargement Negotiations:
Near-joint-programming@ec.europa.eu

European External Action Service:
ECO-FIIC-PROGRAMMING@eeas.europa.eu

Source:

OECD DAC CRS

JOINT PROGRAMMING TRACKER:
https://europa.eu/capacity4dev/joint-programming-tracker

Note: EU/MS refers to the EU and its Member States together.

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

RDBs = Regional Development Banks.

This infographic includes among others Iraq and Yemen, but not the countries of the EU’s Southern Neighbourhood.

138

                                                
                                                
                     
        
 
Investing in Sustainable Development 
in Asia-Paciﬁc

€19 tn 

GDP 
GDP per capita 
Fiscal position 

*

€4,562
-0.26%

Population 4.1 bn  

Multidimensional poverty 

Human Development Index (UN) 
Index 

0.05

0.70

Financing for Development 
as % share of GDP

37.4%

€

Trade (in € bn) 

Imports of goods 
Exports of goods 

Imports of goods (EU)     
Exports of goods (EU)     

3,314
4,000

327
585

* Compared to latest year with available data

External debt stock
€3.7 tn

Multilaterals

7.8%

11.4%

Gross Fixed
Capital
Formation*

Government
Tax Revenue

Other Official Flows

0.1%
0%

0.2%

0.4%

0.06%

ODA  

TOSSD

0.02%

0.06%

1.38%

1.4%

0%

0.1%

FDI flows 

Remittances**

Philanthropy

Public domestic  Private domestic 

Public 
international

Private 
international

EU/MS shares

JOINT PROGRAMMING TRACKER:

https://europa.eu/capacity4dev/joint-programming-tracker

For more information contact:

Sources:

INTPA-SUSTAINABLE-FINANCE@ec.europa.eu

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

OECD-DAC International Development Statistics (IDS) online databases: 
(a) DAC Online and (B) Creditor Reporting System, World Bank (World Development 
Indicators), Remittances database, International Debt Statistics, Joint External Debt 
Hub, Data Help Desk, Classiﬁcation of Fragile and Conﬂict-Aﬀected Situations, UNDP 
(Human Development Report 2020, Global Multidimensional Poverty Index 2020), 
UN CDP (List of LDCs), IMF (Direction of Trade Statistics), EUROSTAT (Balance of 
Payment Statistics, EU FDI data), TOSSD data visualisation tool.

This infographic includes among others Iraq and Yemen, but not the countries of the EU’s Southern Neighbourhood.

Private

 49.6%

Bilateral

5.1%

Short-term

37%

Total Debt as share
of GDP 18.9%

Total Debt servicing
as share of GDP 2.6%

Note: EU/MS refers to the EU and Member States together
For more information on TOSSD:  www.tossd.org

*Measure of total investment in the domestic economy (overlap with FDI)
**Data on remittances from the EU is taken from KNOMAD-World Bank staff 
estimates, Bilateral Remittance Matrix 2020
Paris refers to debts to the Paris Club of creditors (22 countries)

139

 
      
 
                  
                  
  
 
 
 
 
 
      
Figure 5 – Latin America and Caribbean

Mapping Team Europe Financial Contributions 
in Latin America and Caribbean

Latin America and Caribbean’s 
partners in 2019* 

39% - Team Europe

€3,755m

€1,867m

19% - United States

€2,228m (GRANTS)
€1,527m (LOANS)

€1,439m

15% - Germany

€759m (GRANTS)                          
€680m (LOANS)                          

€1,867m (GRANTS)                          

€3,755m

EU/Member
States together

39%

of global
bilateral flows

€4,305m

Total EU / 
Member States
ODA

EU/MS
multilateral
core and 
voluntary 
contributions
€550m 

€855m

9% - France

€186m (GRANTS)                          
€669m (LOANS)                          

9% - EU Institutions

€686m (GRANTS)                          
€148m (LOANS)                          

8% - Inter-American Dev. Bank (IDB)

€59m (GRANTS)                          
€679m (LOANS)                          

€834m

€738m

€421m

€389m

€365m

€325m

4% - Canada

€335m (GRANTS)  
€86m (LOANS)         

4% - United Nations

€377m (GRANTS)                          
€11m (LOANS)                          

4% - Japan

€210m (GRANTS)                          
€156m (LOANS)                          

3% - Spain

€302m (GRANTS)                          
€23m (LOANS)                          

€323m

3% - Russia

€323m (GRANTS)                          

€284m

3% - United Kingdom

€284m (GRANTS)                          

EU/Member States 
funds through 
multilaterals

€46m

€100m

€5m

Bilateral funds
implemented by
multilaterals

€162m

OTHER

RDB

WB

UN

€270m

€63m

€98m

€119m

Core and
voluntary 
contributions

The main sectors
funded by the
EU/Member
States

€301m Other present EU/MS

Sweden, Italy, Belgium, Austria, Netherlands,Luxembourg,
Ireland, Portugal, Denmark, Hungary, Finland, Poland, 
Czech Republic, Slovak Republic, Lithuania, Romania, 
Slovenia, Malta, Latvia.

*Based on ODA disbursements in the particular year.

€6,146m

14% Energy

5% Agriculture

9% Government, Civil 
Society and Human Rights
9% Education

8% Jobs & Growth

4% Water and Sanitation 

4% Humanitarian Nexus

2% Migration, Population, 
Security, Peace 

7% Environment and Forestry

32% Others

6% Transport 

€3,811m

€4,131m

€3,244m

€3,851m

€3,844m

€4,624m

€4,042m

€3,990m

€4,122m

2014

2015

2016

2017

2018

€3,898m

€3,754m

2019

Bilateral ODA trends 2014-2019 
(constant prices)

Team Europe
Non-EU Bilateral Donors

For more information contact:

European Commission services:

DG International Partnerships:
Intpa-Team-Europe-support@ec.europa.eu

DG Neighbourhood and Enlargement Negotiations:
Near-joint-programming@ec.europa.eu

European External Action Service:
ECO-FIIC-PROGRAMMING@eeas.europa.eu 

Source:

OECD DAC CRS

JOINT PROGRAMMING TRACKER:
https://europa.eu/capacity4dev/joint-programming-tracker

Note: EU/MS refers to the EU and its Member States together.

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

RDBs = Regional Development Banks.

140

                                                
                                                
 
Investing in Sustainable Development 
in Latin America and Caribbean

€

Trade (in € bn) 

Imports of goods 
Exports of goods 

Imports of goods (EU)     
Exports of goods (EU)     

821
919

103
82

€4.2tn 

GDP 
GDP per capita 
Fiscal position 

*

€7,389
-3.47%

Population 568m  

Multidimensional poverty 

0.002

Human Development Index (UN) 
Index 

0.77

* Compared to latest year with available data

Financing for Development 
as % share of GDP

External debt stock
€1.7 tn 

18.4%

13.8%

Multilaterals

12.4%

Private

 69.5%

Bilateral

Short-term

2.3%

15.8%

3.15%
2%

0.03%

0.03%

Total Debt as share
of GDP 41%

Total Debt servicing
as share of GDP 6.7%

Gross Fixed
Capital
Formation*

Government
Tax Revenue

Other Official Flows

0.03%

0%

0.1%

ODA  

0.2%

0.56%

0.05%

0.06%

TOSSD

FDI flows 

0.1%

Remittances**

Philanthropy

Public domestic  Private domestic 

Public 
international

Private 
international

EU/MS shares

JOINT PROGRAMMING TRACKER:

https://europa.eu/capacity4dev/joint-programming-tracker

For more information contact:

Sources:

INTPA-SUSTAINABLE-FINANCE@ec.europa.eu

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

OECD-DAC International Development Statistics (IDS) online databases: 
(a) DAC Online and (B) Creditor Reporting System, World Bank (World Development 
Indicators), Remittances database, International Debt Statistics, Joint External Debt 
Hub, Data Help Desk, Classiﬁcation of Fragile and Conﬂict-Aﬀected Situations, UNDP 
(Human Development Report 2020, Global Multidimensional Poverty Index 2020), 
UN CDP (List of LDCs), IMF (Direction of Trade Statistics), EUROSTAT (Balance of 
Payment Statistics, EU FDI data), TOSSD data visualisation tool.

Note: EU/MS refers to the EU and Member States together
For more information on TOSSD:  www.tossd.org

*Measure of total investment in the domestic economy (overlap with FDI)
**Data on remittances from the EU is taken from KNOMAD-World Bank staff 
estimates, Bilateral Remittance Matrix 2020
Paris refers to debts to the Paris Club of creditors (22 countries)

141

      
 
                  
                  
  
 
 
 
 
 
      
Figure 6 – Least Developed Countries

Mapping Team Europe Financial Contributions 
in Least Developed Countries

Least Developed Countries’ 
partners in 2019* 

22% - Team Europe

€11,042m

€10,294m

20% - World Bank

€1,466m (GRANTS)

€8,699 m

17% - United States 

€9,985m (GRANTS)
€1,057m (LOANS)

€8,828m (LOANS)                                      

€8,699m (GRANTS)                          

€15,157m
Total EU / 
Member States
ODA

€3,654 m

7% - EU Institutions

€3,224m

6% - Japan

€3,370m (GRANTS)                          
€284m (LOANS)                          

€1,409m (GRANTS)                          
€1,816m (LOANS)                          

€3,149m

6% - United Kingdom

€3,149m (GRANTS)                          

€2,430m

€2,250m

5% - Germany

€2,409m (GRANTS)  
€21m (LOANS)         

4% - United Nations

€2,026m (GRANTS)                          
€224m (LOANS)                          

EU/Member States 
funds through 
multilaterals

€304m

€19m

€362m

Bilateral funds
implemented by
multilaterals

OTHER

RDB

WB

€1,772m

3% - Global Fund

€1,772m (GRANTS)                          

€1,468m

€1,333m

3% - France

€803m (GRANTS)                          
€665m (LOANS)                          

3% - Saudi Arabia

€954m (GRANTS)                          
€379m (LOANS)                          

€1,255m

2% - United Arab Emirates 
€1,012m (GRANTS)                          
€243m (LOANS)                          

The main sectors
funded by the
EU/Member
States

€2,186m

UN

€11,042m

EU/Member
States together

22%

of global
bilateral flows

EU/MS
multilateral
core and 
voluntary 
contributions
€4,115m 

€1,068m

€532m

€1,680m

€834m

Core and
voluntary 
contributions

€3,490m Other present EU/MS

Sweden, Netherlands, Denmark, Belgium, Italy,
Ireland, Finland, Luxembourg, Spain, Portugal, Austria, 
Hungary, Czech Republic, Poland, Estonia, Romania, 
Slovenia,Croatia, Malta, Lithuania, Greece, 
Bulgaria, Cyprus, Latvia.

*Based on ODA disbursements in the particular year.

€20,064m

€19,462m

€17,305m

€20,875m

€24,419m

€21,445m

€10,497m

€9,191m

€10,212m

€10,821m

€11,098m

€11,041m

17% Humanitarian Nexus 

12% Government, Civil 
Society and Human Rights

10% Agriculture

9% Education

7% Health

7% Water and Sanitation

6% Social Protection

6% Migration, Population, 
Security, Peace
5% Energy

5% General Budget Support

17% Others

Bilateral ODA trends 2014-2019 
(constant prices)

Team Europe
Non-EU Bilateral Donors

2014

2015

2016

2017

2018

2019

For more information contact:

European Commission services:

DG International Partnerships:
Intpa-Team-Europe-support@ec.europa.eu

DG Neighbourhood and Enlargement Negotiations:
Near-joint-programming@ec.europa.eu

European External Action Service:
ECO-FIIC-PROGRAMMING@eeas.europa.eu 

Source:

OECD DAC CRS

JOINT PROGRAMMING TRACKER:
https://europa.eu/capacity4dev/joint-programming-tracker

Note: EU/MS refers to the EU and its Member States together.

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

RDBs = Regional Development Banks.

142

                                                
                                                
 
Investing in Sustainable Development 
in Least Developed Countries

*

€984bn 

GDP 
GDP per capita 
Fiscal position 

€955
-0.98%

Population 1,029m  

Multidimensional poverty 

Human Development Index (UN) 
Index 

0.23

0.54

Financing for Development 
as % share of GDP

28.1%

€

Trade (in € bn) 

Imports of goods 
Exports of goods 

Imports of goods (EU)     
Exports of goods (EU)     

282
199

29
38

* Compared to latest year with available data

External debt stock
€344bn

Multilaterals

34.8%

11.9%

Private

27.8%

Bilateral

28%

Gross Fixed
Capital
Formation*

5.2%

6%

0.3%

4.9%

Short-term

9.3%

Government
Tax Revenue

Other Official Flows

1.4%

 0.7%

ODA  

TOSSD

1.7%

 0.1%

 0.4%

0.1%

FDI flows 

Remittances**

 0.01%

Philanthropy

Public domestic  Private domestic 

Public 
international

Private 
international

EU/MS shares

Total Debt as share
of GDP 34.9%

Total Debt servicing
as share of GDP 2.9%

JOINT PROGRAMMING TRACKER:

https://europa.eu/capacity4dev/joint-programming-tracker

For more information contact:

Sources:

INTPA-SUSTAINABLE-FINANCE@ec.europa.eu

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

OECD-DAC International Development Statistics (IDS) online databases: 
(a) DAC Online and (B) Creditor Reporting System, World Bank (World Development 
Indicators), Remittances database, International Debt Statistics, Joint External Debt 
Hub, Data Help Desk, Classiﬁcation of Fragile and Conﬂict-Aﬀected Situations, UNDP 
(Human Development Report 2020, Global Multidimensional Poverty Index 2020), 
UN CDP (List of LDCs), IMF (Direction of Trade Statistics), EUROSTAT (Balance of 
Payment Statistics, EU FDI data), TOSSD data visualisation tool.

Note: EU/MS refers to the EU and Member States together
For more information on TOSSD:  www.tossd.org

*Measure of total investment in the domestic economy (overlap with FDI)
**Data on remittances from the EU is taken from KNOMAD-World Bank staff 
estimates, Bilateral Remittance Matrix 2020
Paris refers to debts to the Paris Club of creditors (22 countries)

143

 
      
 
                  
                  
  
 
 
 
 
 
      
Figure 7 – Fragile States

Mapping Team Europe Financial 
Contributions in Fragile States

€16,068m

EU/Member
States together

22%

of global
bilateral flows

Fragile States’ partners in 2019* 

22% - Team Europe

€16,068m

€12,389m

17% - World Bank 

€11,396 m

15% - United States

€6,640 m

9% - Turkey

€5,045m

€4,290m

7% - EU Institutions

€4,761m (GRANTS)                          
€283m (LOANS)                          

6% - Germany

€4,126m (GRANTS)                          
€164m (LOANS)                          

€4,288m

6% - United Kingdom

€4,288m (GRANTS)  

€3,892m

5% - Japan

€1,635m (GRANTS)                          
€2,257m (LOANS)                          

€3,077m

€2,423m

4% - United Nations

€2,798m (GRANTS)                          
€279m (LOANS)                          

3% - France 

€1,287m (GRANTS)                          
€1,136m (LOANS)                          

€2,159m

3% - Global Fund

€2,159m (GRANTS)                          

€1,729m

2% - Asian Development Bank
€319m (GRANTS)                          
€1,411m (LOANS)                          

€14,381m (GRANTS)
€1,687m (LOANS)

€1,399m (GRANTS)                          
€10,991m (LOANS)                          

€11,396 m (GRANTS)                          

€21,177m
Total EU / 
Member States
ODA

EU/MS
multilateral
core and 
voluntary 
contributions
€5,109m 

€6,640 m (GRANTS)                          

EU/Member States 
funds through 
multilaterals

€438m

€51m

OTHER

€1,293m

€632m

€2,028m

€1,156m

Core and
voluntary 
contributions

RDB

WB

€331m

Bilateral funds
implemented by
multilaterals

€3,522m

UN

The main sectors
funded by the
EU/Member
States

€4,311m Other present EU/MS

Sweden, Denmark, Netherlands, Italy, Belgium, Spain, Ireland, Finland, 
Luxembourg, Austria, Portugal, Hungary, Poland, Czech Republic, 
Slovak Republic, Romania, Slovenia, Croatia, Malta, Greece, Lithuania, 
Bulgaria, Cyprus, Latvia.

*Based on ODA disbursements in the particular year.

€33,533m

€37,367m

€34,339m

€31,079m

€28,151m

€25,126m

21% Humanitarian Nexus

6% Health

11% Government, Civil 
Society and Human Rights

9% Education

8% Agriculture 

5% Water and Sanitation

5% Energy

5% Social Protection

4% General Budget Support 

6% Migration, Population, 
Security, Peace

20% Others

€13,449m

€12,399m

€14,633 m

€16,699m

€16,228m

€16,068m

Bilateral ODA trends 2014-2019 
(constant prices)

Team Europe
Non-EU Bilateral Donors

2014

2015

2016

2017

2018

2019

For more information contact:

European Commission services:

DG International Partnerships:
Intpa-Team-Europe-support@ec.europa.eu

DG Neighbourhood and Enlargement Negotiations:
Near-joint-programming@ec.europa.eu

European External Action Service:
ECO-FIIC-PROGRAMMING@eeas.europa.eu 

Source:

OECD DAC CRS

JOINT PROGRAMMING TRACKER:
https://europa.eu/capacity4dev/joint-programming-tracker

Note: EU/MS refers to the EU and its Member States together.

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

RDBs = Regional Development Banks.

144

                                                
                                                
 
Investing in Sustainable Development in 
Fragile States

€2.1tn 
*

GDP 
GDP per capita 
Fiscal position 

Population 1.7b  

€

€1,268
-0.50%

Trade (in € bn) 

Imports of goods 
Exports of goods 

Imports of goods (EU)     
Exports of goods (EU)     

511
495

63
113

Multidimensional poverty 

0.192

* Compared to latest year with available data

Financing for Development 
as % share of GDP

External debt stock
€750bn

22%

9%

Multilaterals

26.6%

Private

 39.6%

Bilateral

20.6%

Short-term

13.1%

Total Debt as share
of GDP 34.9%

Total Debt servicing
as share of GDP 2.7%

Gross Fixed
Capital
Formation*

Government
Tax Revenue

0.12%

3.4%

4.14% 5%

1.3%

1%

Other Official Flows

0.5%

ODA  

TOSSD

0.01%

0.4%

0.06%

FDI flows 

Remittances**

0.01%

Philanthropy

Public domestic  Private domestic 

Public 
international

Private 
international

EU/MS shares

JOINT PROGRAMMING TRACKER:

https://europa.eu/capacity4dev/joint-programming-tracker

For more information contact:

Sources:

INTPA-SUSTAINABLE-FINANCE@ec.europa.eu

Exchange rate: $1 = €0.8933
(OECD-DAC exchange rate for 2019)

OECD-DAC International Development Statistics (IDS) online databases: 
(a) DAC Online and (B) Creditor Reporting System, World Bank (World Development 
Indicators), Remittances database, International Debt Statistics, Joint External Debt 
Hub, Data Help Desk, Classiﬁcation of Fragile and Conﬂict-Aﬀected Situations, UNDP 
(Human Development Report 2020, Global Multidimensional Poverty Index 2020), 
UN CDP (List of LDCs), IMF (Direction of Trade Statistics), EUROSTAT (Balance of 
Payment Statistics, EU FDI data), TOSSD data visualisation tool.

Note: EU/MS refers to the EU and Member States together
For more information on TOSSD:  www.tossd.org

*Measure of total investment in the domestic economy (overlap with FDI)
**Data on remittances from the EU is taken from KNOMAD-World Bank staff 
estimates, Bilateral Remittance Matrix 2020
Paris refers to debts to the Paris Club of creditors (22 countries)

145

 
      
 
                  
                  
  
 
 
 
 
      
Annex 5 – Methodology for Monitoring 

Progress towards the Addis Agenda

Monitoring progress towards ambitious objectives such as those included in the Addis Agenda 
can be a challenging task. 

Most of the commitments agreed in the Addis Agenda have no quantifiable targets. Progress may 
relate to financial aspects, policy decisions, changes in the regulatory framework, or other projects 
and initiatives that can be either quantitative or qualitative. Quantitative targets suffer frequently 
from a lack of data (for example, private sector climate finance is not yet properly measured161). 
Qualitative targets at any level (input, output or outcome) also introduce an element of subjectivity 
that complicates both measurement and attribution. 

The first step of the analysis – carried out for the first edition of this report in 2018 – consisted in 
identifying and selecting commitments in the Addis Agenda most relevant to the EU in relation to 
its partnerships with developing countries, as well commitments in the European Consensus on 
Development. These were updated for the current edition, which includes 42 commitments in total.

The commitments identified are grouped into seven different areas (the same set of areas in the 
Addis Agenda) and 16 sub-areas. 

The commitments are mostly related to inputs, which are the centrepiece of the Addis Agenda. 
However, commitments related to outputs and outcomes were also considered when appropriate. 
Due to the lack of data and the scope of the report, it has not always been possible to provide 
disaggregated data by types of beneficiaries, such as women, youth and indigenous people. 

For each commitment, the report considers the two following questions when analysing data and 
information sources. 

4 How strong was the effort made by the EU and its Member States in the period 2018-2020 to 
attain the commitments set by the Addis Agenda? 

This question measures the current level of and trends in investment (in resources, policies, etc.) 
by the EU and its Member States. Some of these actions will bear fruit only in later stages, but 
they offer an indication of current effort. Four colours have been used to measure that effort, using 
a traffic light metaphor: 

7 Very strong commitment and effort 
7 Consistent effort showing a high level of engagement
6 Minimal effort
8 Hardly any or no effort 

The assessment takes several elements into account, such as the intensity of policy changes 
and outreach activities and the magnitude of financial resources provided at a given time. Where 
meaningful, the analysis reviews ODA spending volumes and trends as an additional input indicator 
to measure efforts made to meet non-quantifiable commitments.

4 What progress was made over the period 2018-2020? Is the current trend sufficient to meet 
the commitments by the applicable deadline (2020 or 2030)? 

161. See, for example, Weikmans and Timmons Roberts, 2019.

146

Wherever relevant, the second measurement refers to progress by the EU and its Member States. 
No attempt has been made to attribute progress to the EU and its Member States, as this would 
require a formal evaluation that is beyond the scope of the present report. The questions the report 
attempts to answer are ‘Have the EU and its Member States and/or their partner countries already 
met the targets?’, or ‘Are they attainable in the relevant timeframe?’ Four colours have been used 
to measure progress, again using a traffic light metaphor but with different shapes (circles for 
progress vs arrows for effort):

u Commitments have been met or are close to being met 
u Commitments are likely to be met in the specified timeframe if efforts are sustained
u Insufficient progress, but commitments may still be met if efforts are intensified
y Little or no progress; commitments are likely not to be met

Assessments  of  progress  vary  depending  on  the  type  of  commitments.  While  inputs  can  be 
measured and attributed, outputs and outcomes, even when measurable, are often difficult to 
attribute to a single set of actions or factors. Two examples may help to illustrate the differences. 

It is straightforward to determine whether the commitment to lower the cost of remittances to less 
than 3% has been met or not. 

However, measuring progress on the commitment to support policies designed to improve the legal 
environment for businesses in developing countries is less clear-cut. Any future improvement will be 
the outcome of several actions, including those of partner countries and other developing partners. 

In cases where commitments relate to an outcome at the global level that depends on action by 
a number of different stakeholders, first and foremost partner countries, and where a number of 
external factors might also have an influence, it is not possible to provide an assessment of progress 
from the EU side, and in such cases the report provides only an assessment of the European effort.

4 Where a numeric target for effort or progress is available, the following scale is used to determine 
the colour for both dimensions.

Green

Yellow

99% or more

70%-99%

Orange

40%-70%

Red

40% or less

As to sources, a survey sent to EU Member States, offices of the European Commission, EIB and 
EBRD – carried out in May-June 2021 – was the main basis for information. This was complemented 
by interviews and other sources of data (such as national policy documents, statements, press articles, 
etc.). For financial resources, the analysis focused chiefly on statistics on finance for development 
provided by the Organisation for Economic Co-operation and Development. Details on sources for 
each indicator are available in each chapter and section.

ODA data from the OECD DAC online databases for 2020 were not available yet as of April 15, 2022, 
except for the DAC1 aggregate figures. Full datasets, covering ODA data up to 2019, were extracted 
from the CRS and DAC2A online databases on April 10 and April 13, 2021, respectively.

147

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Annex 7 – Abbreviations and Acronyms 

ACP

African, Caribbean and Pacific 

ASEAN

Association of Southeast Asian Nations 

ATI

Addis Tax Initiative 

BEPS

Base Erosion and Profit Shifting

COVAX

COVID-19 Vaccines Global Access

DAC

Development Assistance Committee

DRM

Domestic Resource Mobilisation

ESG

EBA

Environmental, Social and Governance

Everything but Arms 

EFSD

European Fund for Sustainable Development 

EIB

EITI

European Investment Bank

Extractive Industries Transparency Initiative

ESG

Environmental, Social and Governance

EU

European Union

EUR

Euro

FLEGT

Forest Law Enforcement, Governance and Trade 

GDP

Gross Domestic Product

GNI

Gross National Income

GPEDC Global Partnership for Effective Development Cooperation 

GSP

Generalised System of Preferences 

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GSP+

GSP+  special  incentive  arrangement  for  Sustainable 
Development and Good Governance

GSS

Green, Social and Sustainable

IFC

IMF

LDC

ODA

International Finance Corporation

International Monetary Fund

Least Developed Countries

Official Development Assistance

OECD

Organisation for Economic Co-operation and Development

SDG

SME

STI

Sustainable Development Goal

Small and Medium-sized Enterprises

Science, Technology and Innovation 

TOSSD

Total Official Support for Sustainable Development 

UN

United Nations

UNCTAD United Nations Conference on Trade and Development

USD

U.S. dollar

VPA

Voluntary Partnership Agreement

WTO

World Trade Organisation

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Getting in touch with the EU

In person
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On the phone or by email
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Finding information about the EU 

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