In a press release, the Policy Forum (FoPo) of the Cooperation Circle of NGOs of Luxembourg has firmly rejected plans to include certain climate-related spending and costs linked to the reception of refugees in the calculation of official development assistance. According to the Cooperation Circle, such a move could reduce the cooperation budget, currently set at 1% of gross national income (GNI), by up to a quarter.
The criticism follows statements made by Minister for Development Cooperation and Humanitarian Affairs Xavier Bettel during a parliamentary debate on 19 March on Luxembourg’s cooperation policy. While Bettel later clarified that he had merely intended to open a discussion in light of the current state of public finances, the FoPo argues that the proposal goes far beyond a technical adjustment.
In the press release, they stated that the proposal would effectively amount to a budget reallocation that is, in reality, a cut, marking a significant political shift that would weaken Luxembourg’s commitment to international solidarity. The FoPo also warned that revising the “additionality” principle, which ensures that development aid remains separate from other types of public spending, would dilute the resources dedicated to fighting poverty and supporting partner countries.
The FoPo further stressed that Bettel’s suggestion to reclassify certain projects funded by the Ministry of the Environment, Climate, and Biodiversity under the 1% GNI target confirms that this is not simply a methodological change, but a reorientation of policy. They also pointed out that such a move would contradict recent commitments made by Parliament.
In July 2024, MPs adopted a motion, supported by all political parties except the Alternative Democratic Reform Party (ADR), reaffirming the importance of maintaining the 1% target and the principle of additionality, according to the press release. The FoPo expressed concern that Bettel’s position reflects arguments previously associated with the ADR, marking what it described as a troubling political shift.
Against a backdrop of overlapping global crises, including climate, humanitarian, economic, and geopolitical challenges, the organisation argues that Luxembourg should be strengthening, rather than weakening, its development cooperation efforts. They emphasise that maintaining a predictable and ambitious aid policy is more important than ever, particularly as many international actors are reducing their commitments.
In this context, the FoPo has called on MPs to reject any attempt to revise the principle of additionality and urged the minister to respond promptly to a parliamentary question on the issue, to ensure a transparent and informed public debate. Finally, they stressed that climate action remains an essential component of building a more sustainable and just world, but warned that it should not come at the expense of development aid.
Instead, the FoPo called for greater policy coherence to ensure that climate, economic, and financial policies all contribute to development objectives without weakening them.
