The Dutch Vice minister of development, Steven Collet, has shared new details on the country's climate finance initiatives, empahsising the need of including finaince ministries in low and middle income countries to integrate climate financing into their national budgets.

The Netherlands is changing how it supports the fight against climate change. Instead of focusing only on cutting emissions, it now puts more attention on climate adaptation—helping countries prepare for droughts, floods, and heatwaves. Collet explained that the Netherlands is “doubling down on climate adaptation,” shifting from only reducing gases to also building resilience and response systems. A key objective is to advance gender equality and ensure that climate adaptation measures are inclusive and meet the needs of women and girls. However, reaching marginalized groups and engaging them in a participatory manner remains a challenge.

A key part of this plan is making sure climate money is built into national budgets, not just given through short-term projects. As Collet said, “We’re supporting finance ministries to integrate climate financing into their systems.” This makes the funds more reliable and long-lasting.

Vice-Minister of Finance in the Netherlands added: “We are advancing our collective understanding of the analytical tools and models that provide a critical foundation for designing informed, effective policy responses. By helping equip finance ministries with these capabilities, we can better address physical climate risks, safeguard long-term economic stability and protect public finances.”

The Netherlands also wants clear rules on how public money and private investment should work together, so that aid doesn’t replace private funding but adds to it. Collet stressed that “aid doesn't crowd out private investment or weaken the impact of public resources.”

The Netherlands’ aid and trade policy seeks to link development cooperation with business opportunities, working with Dutch companies to deliver solutions while driving economic growth and job creation in low- and middle-income countries. Climate action is a central part of this approach, supported through funds like the Dutch Fund for Climate and Development (DFCD), which backs adaptation and mitigation projects with a focus on food security, water management, and climate-resilient agriculture.

However, the government has announced sharp budget cuts, reducing climate-related development funding from about €381 million in 2026 to €200 million annually from 2027, a move that could limit future climate and development efforts.