The EU is the largest donor of development aid in the world. It is committed to increasing its contribution, and to donating at least 0.7% of its gross national income a year. But financial aid alone is not enough to sustainably reduce poverty.
Political action is needed to overcome challenges in governance, trade regimes and geography, and to make best use of the opportunities arising from globalisation.
The EU and its member countries are also the biggest contributors of climate finance as a means to mitigate climate change and financially support adaptation projects and programs in support of developing countries, providing €14.5 billion in 2014.
Climate finance from the EU budget will more than double by 2020, to 20% of the total budget.
Between 2014 and 2020 the EU and its member countries aim to provide an average of €2 billion a year in grants to developing countries.