Budget ‘25 Cuts To Foreign Aid And Climate Finance A Short-Sighted Move
World Vision New Zealand is disappointed that Budget '25 has cut the country's contribution to foreign aid and climate finance and says children will suffer as a result.
The Finance Minister Hon. Nicola Willis' Budget '25 has cut foreign aid and climate finance by more than 11% to less than one quarter of one percent (just 0.24%) of Gross National Income. The biggest cut is to the government's commitment to climate finance, which has been halved for 2026.
World Vision New Zealand's National Director, Grant Bayldon, says the lack of commitment to climate finance is devastating. He says the government has missed a critical opportunity to invest in the Pacific region to ensure it is strong and thriving.
'New Zealand made a clear commitment under the Paris Agreement to support people in the world's most vulnerable countries to adapt to climate change. Many of them are our Pacific neighbours, where children are already facing the devastating impact of climate change. We promised to stand with them – now we're pulling back.
'Today's Budget was a chance to do our part in the Pacific region to address poverty and provide support for climate resilience programmes to help address the escalating humanitarian impacts of climate change.
'Sadly, we have seen this Government turn its back on the Pacific region and in doing so, it has overlooked the urgent needs of Pacific communities, which continue to bear the brunt of climate shocks. The region, including New Zealand, will pay the price for this neglect for years to come,' Bayldon says.
Bayldon says climate finance in the Pacific means investment in practical things such as initiatives to protect communities from rising seas, improvements to ensure safer water, and the introduction of climate-smart food production — real solutions that help families stay safe and children thrive in the face of climate chaos.
He says the cuts are out of step with the New Zealand public. A 2024 poll commissioned by the Ministry for the Environment found that 74% of New Zealanders say meeting our 2030 climate target is important.
He says humanitarian needs are growing around the world and the government's cuts to Overseas Development Assistance and Climate Finance will only exacerbate that suffering.
'We are living in an uncertain world in which conflict, displacement, and hunger are ever-growing problems. What we need now is for countries like New Zealand to demonstrate leadership, empathy, and compassion and commit to investing in foreign aid and climate finance.
'Today's announcement sends the wrong message to our Pacific neighbours at a critical time, and it would be no surprise if they turn elsewhere for help and support. Children and families in the Pacific deserve better, and we urge the government to reconsider its stance,' Bayldon says.
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