EU Statement - UNHCR 94th StandCo - Agenda Items 2 and 3: Programme budgets and funding; Finance and oversight

EU Statement - UNHCR 94th StandCo - Agenda Items 2 and 3: Programme budgets and funding; Finance and oversight

UNHCR 94^th STANDING COMMITTEE

8-9 September 2025

Agenda Items 2 and 3: Programme budgets and funding; Finance and oversight

Statement on behalf of the EU and its Member States

Thank you, Chair.

The candidate countries North Macedonia, Montenegro, Serbia, Albania, Ukraine, Republic of Moldova[1] and Georgia, and Norway, member of the European Economic Area, as well as Armenia align themselves with this statement.

I have the honour to speak on behalf of the European Union and its Member States.

We take note of the 2026 proposed programme budget focusing on protection, solutions and lifesaving emergency response, and of the staggering projection of up to 136 million forcibly displaced and stateless persons. We reaffirm our strong support for UNHCR's core protection mandate and its ability to respond to both acute emergencies and protracted situations, with particular attention to persons in vulnerable situations. Advancing the solutions agenda is essential, as is maintaining a robust emergency response and protection capacity, including in hard-to-reach and underfunded areas.

We remain concerned by the growing funding gap, which has been further exacerbated by broader pressures on global humanitarian financing. We note with appreciation High Commissioner Grandi's transparency in sharing the outcomes of UNHCR's internal review. Difficult decisions had to be taken to adjust operations, programming and staffing. We welcome the organisation's efforts to protect core functions, including protection, oversight, and risk management. These capacities are not optional - they are central to mandate delivery and institutional credibility.

We acknowledge the report "On the Brink" regarding the impact of aid cuts on up to 11.6 million forcibly displaced persons. Continued visibility on the operational consequences of funding shortfalls is needed. Further transparency on how UNHCR's prioritisation decisions are made - particularly with respect to the severity of needs, cost-effectiveness, and risk - is crucial to build trust and incentivise broader burden-sharing.

The EU and its Member States remain committed partners and donors across all regions, and we urge more partners to contribute to sustainable responses and to the route-based approach. We call upon all actors with relevant resources to assist in addressing forced displacement challenges. We encourage UNHCR to identify where other partners, especially local organisations, can scale up support for displaced populations and host communities.

We recognise the generosity of host countries and communities, who continue to provide support to refugees, despite increasingly challenging circumstances. It is urgent to advance the adoption and effective implementation of national policies and legislation enabling freedom of movement and residence of refugees within their host communities, and to promote the economic self-reliance and employment of refugees, with particular attention to women, so they can contribute to the local economy.

We need to support host countries and communities in enabling refugees' inclusion into national public services, notably in education, health and social protection, avoiding separate costly social systems for refugee communities, making the overall exercise financially more sustainable. The scale and complexity of forced displacement today require coordinated responses - rooted in national leadership and ownership, whole-of-government engagement, and inclusion. This will foster better linkages with development cooperation assistance.

We support UNHCR's efforts to further develop its sustainable responses approach, hand in hand with the World Bank. It is paramount to roll out enhanced coordination and joined-up interventions with key stakeholders wherever conditions allow, including host governments and communities, refugee-led organisations, INGOs, local civil society, development actors, regional financial institutions, and the private sector, with a strong focus on promoting longer-term development responses to displacement. This mindset should guide the upcoming Global Refugee Forum Progress Review, in which Member States will have the opportunity to renew support to refugees and host communities.

We encourage UNHCR to further leverage partnerships with emerging and private donors, and to mobilise not only financial resources, but also innovation - including Artificial Intelligence - and technical expertise, as well as to expand innovative financing mechanisms. This diversification is vital for long-term sustainability.

We welcome UNHCR's proactive role in the UN80 and Humanitarian Reset processes. These reform exercises represent an opportunity to reaffirm the imperative of safeguarding principled humanitarian action, enhance efficiency and prioritisation, reinforce delivery based on severity of needs, and improve field and overall effectiveness of the humanitarian system. UNHCR's contributions, including on protection leadership, data, interoperability and inter-agency coordination, especially with IOM - are essential to the success of these reforms, and in limiting duplication and fragmentation. Coherence across the entire UN80 effort is essential to ensure impact and credibility including in the continued pursuit of sustainable responses. To this end, we encourage UNHCR to continue its alignment with system wide reform efforts, safeguarding its unique protection mandate.

In the area of integrity and oversight, we appreciate the continued prioritisation of robust internal controls, audit, and investigative functions even amid budget constraints. We welcome the report of the Board of Auditors and call on UNHCR to continue strengthening internal audit arrangements and improving the implementation of audit recommendations.

We commend UNHCR's leadership in fraud prevention, detection, and system-wide anti-corruption coordination. The Inspector General's Office plays a central role in safeguarding accountability and must be sufficiently resourced and empowered to fulfil its mandate. Accountability and swift measures to recover funds are key to ensure trust. We expect UNHCR to be at the forefront of the Inter-Agency Standing Committee response to fraud.

Protection from sexual exploitation, abuse and harassment is non-negotiable. We recognize UNHCR's leadership, shown through its comprehensive policy framework covering all forms of misconduct and its role in the Misconduct Disclosure Scheme. Progress has been achieved, yet, as the Joint Inspection Unit's review underlines, important work remains. We encourage UNHCR to sustain its pivotal role in driving culture change and advancing a victim-survivor-centered approach, while maintaining close cooperation with UN and NGO partners to strengthen prevention and response.

UNHCR operates in a rapidly evolving humanitarian and geopolitical landscape. Despite real funding challenges, with sound financial governance, clear strategic direction, and principled partnerships, UNHCR can continue to deliver effectively. The EU and its Member States remain committed to ensure its long-term sustainability, efficiency, and impact.

Thank you.

[1] North Macedonia, Montenegro, Serbia, Albania and Bosnia and Herzegovina continue to be part of the Stabilisation and Association Process.