Europe has redirected billions of Euros away from development and climate finance as the region looks to build its war economy. The UK, Germany and the Netherlands have already cut back on development finance and aid, with other European countries expected to announce similar measures. This aid supported programmes and initiatives that supported rebuilding efforts after floods, droughts and cyclones in developing countries, with concerns that the cuts will increase immigration, weaken Europe’s standing and jeopardise the new climate finance deal made at COP29. Aid cuts also coincide with reversals in climate investments. The S&P Global Clean Energy Index has lost about 40% of its value since Russia invaded Ukraine in February 2022, with the S&P Global 1200 Aerospace & Defense Index climbing 64% in the same period.
