- The Road to 2030 development co-operation strategy
Development co-operation institutions:
Luxembourg’s development co-operation is comprised of the MFEA, the implementing agency Lux-Development (LuxDev) and the Ministry of Finance. The Directorate for Development Cooperation and Humanitarian Affairs at the MFEA is responsible for designing and implementing Luxembourg’s development co-operation policy, while the development co-operation agency, LuxDev, executes around one-third of Luxembourg’s bilateral ODA on behalf of the state, and also implements programmes for DAC partners.
Luxembourg provided USD 538.9 million of ODA in 2021, representing 0.99% of GNI. This was an increase of 9.7% in real terms in volume but a decrease in share of GNI from 2020. Consistently providing 1.0% of GNI as ODA, Luxembourg has exceeded the 0.7% UN target since 2000. Luxembourg is in line with its domestic (1.0%) and EU commitments to achieve a 0.7% ODA/GNI ratio by 2030. Luxembourg provides all of its ODA as grants.
In 2021, Luxembourg was the most generous DAC member relative to the size of its economy. With 0.48% ODA/GNI committed to the LDCs in 2020, Luxembourg also surpasses the 0.2% UN target and is the leading DAC donor in this regard. Moreover, its efforts for international climate finance are supplementary to its ODA budget. Luxembourg allocates high shares of its bilateral ODA to Africa (47.6% in 2020) as well as to fragile contexts (50.3%). It channels a significant share of ODA through civil society organisations (CSOs) (25.7%).
Global Partnership monitoring trend
Click here for a snapshot of Luxembourg's results from the two most recent Global Partnership monitoring rounds (2018 and 2016). The Global Partnership monitoring process and framework have been revised, and the new round will take place from 2023 to 2026. This profile will be updated periodically as new data is generated by the monitoring exercise.
The 2020 OECD-DAC mid-term review praised Luxembourg’s progress. Key actions included whole-of-government country strategies, dialogue and mechanisms for greater policy coherence, and investing in information management. As Luxembourg is a leader in sustainable and inclusive finance, the mid-term review encouraged Luxembourg to better integrate developing countries into sustainable finance efforts. Investments in its cross-cutting priority – environment – and reflecting on the approach to fragility and risk management were identified as opportunities for further progress.