SUMMARY OF PLENARY DISCUSSIONS AND OUTCOMES
DAY 1 – WEDNESDAY, 4 DECEMBER 2024
On Wednesday, 4 December 2024, the second session of the Executive Board of the United Nations Human Settlements Programme (UN-Habitat) for the year 2024 opened in Nairobi, Kenya.
Agenda item 1: Opening of the session
The Chair welcomed all delegates to the second session of the Executive Board for the year 2024 and extended warm congratulations to Ms. Anacláudia Rossbach on her appointment as United Nations Under-Secretary-General and Executive Director of UN-Habitat.
In her opening statement, Ms. Zainab Hawa Bangura, Director-General of the United Nations Office at Nairobi (UNON) commended UN-Habitat and the Arab Republic of Egypt for the successful organization of the twelfth session of the World Urban Forum (WUF12). She reaffirmed UNON’s commitment to enhancing infrastructure for meetings and conferences, emphasizing the importance of addressing pressing challenges facing communities worldwide. She expressed gratitude to all Member States for their collaboration and commitment to advancing sustainable urbanization.
Ms. Anacláudia Rossbach, UN-Habitat’s Executive Director, commended the Government of Kenya for the support to UN-Habitat’s mission and its commitment to addressing housing challenges. She underlined that housing was central to sustainable urban development and that UN-Habitat remained committed to supporting Member States in this domain. She reflected on key engagements at WUF12, the Summit of the Future, COP29, and at the G20, labelling them as critical platforms for advancing sustainable urban development. She further noted that while UN-Habitat managed to reverse its financial deficit, the programme continued to rely on the support of Member States to avoid relapsing into financial instability, especially in the context of regular budget liquidity challenges.
Mr. James Maina, Director of Housing, Ministry of Lands, Public Works, Housing and Urban Development of Kenya, representing the Host Country, reaffirmed Kenya’s commitment to supporting UN-Habitat, emphasizing the importance of non-earmarked contributions to sustain the Organization’s operational and normative activities. He confirmed Kenya’s readiness to host the resumed second session of the United Nations Habitat Assembly in 2025 as well as facilitate the development of the Strategic Plan 2026-2029. Kenya reaffirmed its support for the implementation of the New Urban Agenda.
The Chair closed the agenda item without further comment or reservation.
Agenda item 2: Organizational matters
The Executive Board:
- Adopted the agenda and the work plan for the second session of 2024.
- Adopted the report of the Executive Board on the work of its first session of 2024.
The Chair closed the agenda item without further comment or reservation.
Agenda item 3: Reports of the ad hoc working groups established by the Executive Board
H.E. Dr. Pedro Leon Cortes Ruiz, Ambassador of the Republic of Colombia and Chair of the ad hoc working group on programmatic, budgetary and administrative matters, briefed the Executive Board on the work of the group, including financial updates, the draft work programme and budget for 2025, the Strategic Plan 2026-2029, WUF12, normative and operational activities, implementation of the resolutions adopted by the United Nations Habitat Assembly, and the 2023 Annual Report.
The working group acknowledged positive financial progress, including a surplus in the Foundation non-earmarked funds, while advocating for increased non-earmarked contributions. The group reviewed the proposed 2025 budget and scalability models. Feedback on the zero draft of the 2026-2029 Strategic Plan emphasized the need for clearer language, as well as measurable outcomes and realistic goals. It was further recommended to consider the WUF12 outcomes into the draft Strategic Plan 2026-2029.
The working group welcomed updates on country programmes, partnerships in the fields of displacement and migration, and clarification on the concept of urban regeneration. The working group also requested to be updated on challenges affecting implementation of the United Nations Habitat Assembly resolutions and lessons learned or best practices identified. Regarding the Annual Report 2023, the group highlighted achievements and requested for more regional data and lessons learned. Finally, the working group contributed to drafting decisions on financial, programmatic, and governance matters for the Executive Board’s approval.
Mr. Antonio Miguel Luís, Deputy Permanent Representative of Portugal to UN-Habitat and Chair of the ad hoc working group on UN-Habitat’s stakeholder engagement policy, briefed the Executive Board on the status of its work. The working group completed the second reading and started the third reading of the draft policy, focusing on outstanding sections. The working group indicated that accreditation continued to be a challenging issue, particularly when a Member State objects to a civil society organization’s application. Other unresolved issues include the policy’s application to non-legislative meetings such as the World Urban Forum, stakeholder engagement in public meetings, representation of coalitions, and benefits during intergovernmental meetings. UN-Habitat provided relevant background materials and shared experiences from the UN system. The working group indicated that it would require additional time to address the remaining issues and consult with Member States.
Interventions by Member States
MOROCCO congratulated the Executive Director on her appointment and praised the efforts of the working groups; reminded of the intergovernmental nature of UN-Habitat and the need to recognize state sovereignty in the deliberations of the working groups.
BRAZIL commended UN-Habitat for its diligent efforts in preparing the session and congratulated the Executive Director on her appointment; extended congratulations to Colombia and Portugal on their chairmanship and acknowledged the efforts undertaken; emphasized the importance of developing the stakeholder engagement policy transparently and in a way that fosters the effective participation of civil society; reaffirmed Brazil’s support for stakeholder engagement in UN-Habitat’s work, highlighting its tangible impact on the ground.
ALGERIA, on behalf of the African Group, commended the development of the Strategic Plan 2026-2029; thanked Ethiopia and Egypt for hosting the Africa Urban Forum and the World Urban Forum, emphasizing the importance of considering the Cairo Call to Action and the Addis Ababa Declaration into the 2026-2029 Strategic Plan to reflect global and regional priorities; highlighted these forums as vital platforms for effectively implementing the New Urban Agenda; encouraged the use of the Agenda 2063 of the African Union as a guiding framework for adopting urban priorities in the region; called on the Secretariat to keep Member States regularly updated; urged Member States to enhance non-earmarked contributions to strengthen the Organization’s response to urban crises; reaffirmed the African Group’s unwavering support for the Executive Director.
ANGOLA recognized the implementation of Strategic Plan 2026-2029 as vital to ensuring global coordination in addressing the urban crisis and reaffirmed its commitment to supporting UN-Habitat; encouraged UN-Habitat to develop a new strategic plan that ensures continuity in the Organization’s work; extended congratulations to Egypt and Ethiopia for hosting the World Urban Forum and the Africa Urban Forum and commended the outcomes of these events; noted the visit of the Director of ROAF to Angola and the meeting with relevant officials.
SWEDEN warmly welcomed the Executive Director to UN-Habitat; emphasized the critical role of civil society in UN-Habitat’s activities and underlined the importance of a robust stakeholder engagement policy; stressed the need to remove barriers for stakeholder organizations to participate and encouraged UN-Habitat to adopt best practices on this from other UN agencies based in Nairobi.
GERMANY extended its best wishes to the Executive Director; expressed gratitude to the working groups for their efforts, emphasizing that meaningful stakeholder engagement is essential for both UN-Habitat’s normative and operational work; highlighted the importance of integrating diverse sectors, including civil society, private sector, governmental bodies, and academia; reaffirmed its commitment to a straightforward accreditation process and broad stakeholder participation; stressed that any attempt to limit participation would need to be justified with sufficient reasoning; encouraged UN-Habitat to foster inclusive engagement with all interested stakeholders.
USA welcomed the Executive Director and commended UN-Habitat for engaging Member States to develop the stakeholder engagement policy and supported continued progress in this area, and praised the efforts of the ad hoc working group on programmatic, budgetary and administrative matters; acknowledged the Executive Board as a vital body for ensuring the continuity of UN-Habitat’s operations and oversight of its mandate; mentioned the doubling of its contribution to the core budget and encouraged all Member States to enhance their contributions to strengthen UN-Habitat’s capacity; praised Egypt for hosting the World Urban Forum; highlighted UN-Habitat’s instrumental role in responding to crises and commended the hosting of the Open-ended Intergovernmental Working Group on Adequate Housing for All in Nairobi, encouraging all Member States to participate actively.
The Chair closed the agenda item without further comment or reservation.
Agenda item 4: Financial, budgetary and administrative matters.
The Executive Director opened the agenda item and expressed gratitude for the support by Member States and all staff members in ensuring the overall stabilized and healthy financial position of UN-Habitat.
UN-Habitat reported on its funding and financial situation. Non-earmarked contributions in 2024 saw a slight decline in the number of donors, decreasing from 26 to 22, but exceeded the previous two years in value, reaching USD 4.6 million. These contributions primarily came from high- and upper-middle-income countries, with notable support from lower-income nations. Regionally, Africa accounted for the highest participation rate (37%), followed by Western Europe (32%) and Asia-Pacific (24%). Regarding expenditure, 2023 allocations show that nearly half of the funds were spent in Africa (40%), while 37% were directed to Asia-Pacific and 24% to Arab States, which span across Africa and Asia.
UN-Habitat reported that its Foundation non-earmarked fund had made a strong recovery following a period of insolvency, with net assets reaching USD 7.7 million – the healthiest level since 2016. Revenue stabilized, and while some volatility was anticipated in the fourth quarter, expenses remained in line with the approved budget. UN-Habitat indicated that by the end of 2024, net assets were projected to decrease to USD 7.2 million after planned expenditures. The financial outlook for 2025 appeared stable, with a statutory reserve of USD 3 million already secured. UN-Habitat indicated that it expects to have USD 4.2 million in working capital by the beginning of 2025, nearly equivalent to the proposed baseline budget of USD 4.7 million. This would ensure that even with minimal revenue, the statutory reserve would be protected, and the baseline budget fully supported.
Interventions by Member States
EGYPT, on behalf of G77 and China, expressed support for the Executive Director’s leadership and appreciated the efforts of UN-Habitat; urged Member States to increase non-earmarked contributions to improve the Programme’s activities; emphasized the importance of financial stability in the implementation of the strategic plan.
STATE OF PALESTINE, on behalf of the Arab Group, congratulated the new Executive Director and expressed confidence in her leadership; stressed the need for continued efforts to strengthen financial contributions to support the implementation of the strategic plan, emphasizing climate change, inclusive housing, and urban-rural linkages in the Arab region, and to address the challenges in urban areas, particularly in the context of reconstruction in Gaza.
MOROCCO underscored the importance of strengthening non-earmarked contributions to provide flexibility to the Organization; requested an update on the progress of the Sustainable Cities and Communities Foundation (SPCF) at the next session of the Executive Board in 2025.
INDIA acknowledged the prudent financial management of UN-Habitat and appreciated the surplus achieved in various funds; emphasized the need to strategically utilize these surpluses to advance flagship initiatives and requested continued transparency in financial reporting; underlined the need to address the unique challenges of developing nations in the next strategic plan.
GERMANY commended the financial stability and reaffirmed the importance of strengthening UN-Habitat’s core mandate through consistent core budget contributions; called for collective action to improve non-earmarked revenue patterns.
FRANCE welcomed the stabilization of non-earmarked funding and urged adherence to the auditors’ recommendations on grants and staffing transparency.
EGYPT expressed support for strengthening the Organization’s financial position and highlighted the importance of assessments, including JIU and MOPAN, for the programme’s improvements; reaffirmed the need to address newly affected areas and called for reactivating the UN-Habitat Emergency Fund.
COLOMBIA highlighted progress in financial management and called for leveraging surplus funds to enhance programmatic flexibility; suggested diversifying funding sources and addressing earmarked funding deficits.
USA noted the alignment of projected 2024 revenue with the approved budget; further requested full implementation of long-standing audit recommendations.
BRAZIL noted the non-earmarked contributions trajectory and called for strategic utilization of surpluses; emphasized the need to address recommendations of the Board of Auditors; asked for clarification on loan repayment.
SWEDEN commended efforts to mobilize resources and stressed the need for predictable funding; encouraged all donors to study different funding modalities and highlighted that the situation of the non-earmarked foundation remains concerning.
MEXICO noted measures to maintain solvency of non-earmarked funds and requested details on other staffing costs and travel expenses trends; encouraged the implementation of all audit recommendations.
ETHIOPIA called for implementation of the Board of Auditors recommendations; urged for consideration of the priorities for Africa in the context of urbanization and strengthened support for country needs.
ALGERIA reiterated its commitment to active engagement in UN-Habitat initiatives, especially with regards to housing and smart cities.
JAPAN welcomed the achievement of budget surplus and urged efforts to maintain realistic budget planning to avoid future deficits.
ARGENTINA stressed the need for transparency in financial reporting; called for strengthened reporting mechanisms and implementation of auditors’ recommendations.
PORTUGAL emphasized the importance of addressing audit recommendations within the collective accountability framework; highlighted its satisfaction with the scalability model but noted the need to reconsider it for the next strategic plan to align with updated priorities.
The Chair closed the agenda item without further comment or reservation.
Agenda item 5: Consideration and possible approval of the draft work programme of UN-Habitat and the draft budget of the United Nations Habitat and Human Settlements Foundation for 2025
UN-Habitat opened the agenda item by presenting an overview of its draft work programme and the United Nations Habitat and Human Settlements Foundation budget for 2025.
UN-Habitat highlighted the emphasis of both the work programme and budget on the key focus and impact areas of the draft 2026-2029 Strategic Plan – including adequate housing, land, and urban basic services – as part of the Organization’s efforts to ensure a smooth transition of its project activities and priorities.
On the draft budget specifically, UN-Habitat noted that the growth of the budget from the USD 4 million baseline in 2024 to USD 4.7 million in 2025 reflected staff post adjustments at the Nairobi duty station. UN-Habitat referenced 19 posts previously proposed and stated its goal of scaling up to 22 posts. UN-Habitat indicated that the financial scope of the scalability model was USD 8 million, spread across 7 thematic pillars and sequential packages, and corresponding to a total scale-up of 63 positions.
Interventions by Member States
FRANCE inquired about the advisory committee of the Board of Auditors and the transfer of unspent funds without donor consent. UN-Habitat clarified that these situations comprised only about 5 per cent of funds and reiterated the value of the urban action window as a solution to the challenge of ensuring that unspent funds can be productively used.
KENYA supported the recommendation of the ACABQ (Advisory Committee on Administrative and Budgetary Questions) report to keep personnel and operational costs under review and emphasized the importance of maintaining geographic and gender balance across all staff categories; further supported the efforts by UN-Habitat to conduct a donor satisfaction survey as part of broader efforts to increase resource mobilization and inquired about the timeline for this survey. UN-Habitat responded that findings from the donor questionnaire and interviews were shared with senior management and auditors, and that the Organization remained available for any additional information on these findings.
BRAZIL and PORTUGAL endorsed the first package of the scalability model and requested that UN-Habitat follow recommendations by ACABQ, including on revisions to the scalability model. In response to their question on the reason for over- and under-expenditures in the budget report, UN-Habitat clarified that expenses can be difficult to predict across budget classes and that funds are appropriately reallocated to ensure that the Programme can meet its objectives with the same overall budget.
ARGENTINA endorsed the first package of the scalability model and encouraged continued budgetary discipline and transparency. In response to a question on measures that UN-Habitat can implement to ensure sustainability of the first package, UN-Habitat highlighted the obligation of the Executive Director to continue to adapt to changes in revenue by either scaling up or down operational costs as needed.
USA expressed support for the 2025 draft work plan and budget and advocated for increased contributions by fellow Member States to the foundation non-earmarked budget, highlighting its own increased contributions to this end.
COLOMBIA endorsed the first package of the scalability model and supported Annex 3 on the operationalized scalability model. In response to questions about how UN-Habitat would monitor and evaluate the scalability model and strategies to ensure budget sustainability in countries of operation, UN-Habitat reiterated the important role of the Executive Director in closely monitoring changes in revenue and adjusting staff posts accordingly.
GERMANY highlighted that the increase in the budget did not reflect any qualitative changes (e.g., new posts) and noted that ideally a budget increase would reflect increased ambition and scope of work for UN-Habitat in delivering its mandate; echoed the question of Brazil and Portugal on the sustainability of posts under the model moving forward.
CAMEROON requested that the Executive Director provide an update on the geographic and gender balance of staff and inquired about the succession plans for departing and retiring staff. UN-Habitat responded that it would prepare a report containing this information and review its succession plans for departing staff.
MALAWI commended UN-Habitat for its global operational and normative work more generally and asked for additional technical support to countries in the Global South on key issues such as basic services and climate resilience; welcomed the efforts by UN-Habitat to effectively budget and efficiently allocate resources in the delivery of its mandate.
Following the discussions, the Chair took note of the presentation, subject to discussions within the contact group negotiating the final outcomes, and closed the agenda item.