2025 FIRST SESSION OF THE EXECUTIVE BOARD, 25-27 MARCH 2025

SUMMARY OF PLENARY DISCUSSIONS AND OUTCOMES

DAY 1 – TUESDAY, 25 MARCH 2025

On Tuesday, 25 March 2025, the first session of the Executive Board of the United Nations Human Settlements Programme (UN-Habitat) for the year 2025 opened in Nairobi, Kenya.

Agenda item 1: Opening of the session

Dr. Shuaibu Belgore, Permanent Secretary of the Ministry of Housing and Urban Development of the Federal Republic of Nigeria, welcomed all delegates to the first session of the Executive Board for 2025. Speaking on behalf of Mr. Ahmed Musa Dangiwa, Minister for Housing and Urban Development of Nigeria and Chair of the UN-Habitat Executive Board, he assumed the role of Chair and conducted the session.

In her opening statement, Ms. Zainab Hawa Bangura, Director-General of the United Nations Office at Nairobi (UNON), reaffirmed UNON’s commitment to supporting UN-Habitat’s mission, particularly in organizing the resumed second session of the United Nations Habitat Assembly (UNHA-2.2). She highlighted UNHA’s significance in approving the draft Strategic Plan 2026-2029, the stakeholder engagement policy, and the international guidelines on people-centred smart cities. She expressed gratitude to all Member States for their collaboration and commitment to advancing sustainable urbanization.

UN-Habitat’s Executive Director, Ms. Anacláudia Rossbach, thanked the Government of Kenya for its continued support of UN-Habitat’s mission. She noted that 2025 would be a pivotal year, with key meetings shaping UN-Habitat’s strategic direction, including UNHA-2.2 and the elections of a new Executive Board and the Bureaus of the Open-Ended Committee of Permanent Representatives and the Habitat Assembly. She reaffirmed the Organization’s commitment to supporting Member States through innovative solutions and highlighted challenges faced due to financial constraints. The Executive Director emphasized the need for increased financial commitments to support country-level programmes on housing, basic services, climate resilience, and urban recovery. She also underscored UN-Habitat’s focus on innovation, efficiency, and transformation, aligning with the recent UN80 Initiative and the UN 2.0 Initiative, aimed at making UN effective, cost-efficient and responsive to the people it serves.

Ms. Alice Wahome, Cabinet Secretary for Land, Public Works, Housing, and Urban Development of Kenya, emphasized that the session was convened at a critical time. She reaffirmed Kenya’s commitment to strengthening UN-Habitat’s governance and confirmed its support towards a successful UNHA-2.2. She urged all Member States to participate at the highest levels to enhance global cooperation in addressing urban challenges.

The Chair closed the agenda item without further comment or reservation.

Agenda item 2: Organizational matters

The Executive Board:

  • Adopted the provisional agenda and the work plan for the first session of 2025.
  • Adopted the report of the Executive Board on the work of its second session of 2024.

Agenda item 3: Reports of the chairs of the ad-hoc working groups

The Chair invited the Chair of the ad hoc working group on UN-Habitat’s stakeholder engagement policy and the chair of the ad hoc working group on programmatic, budgetary and administrative matters to brief the Executive Board on the work of the respective working groups.

The Chair of the ad hoc working group on UN-Habitat’s stakeholder engagement policy, Mr. Antonio Miguel Luís, Deputy Permanent Representative of Portugal, provided an update on the status of the stakeholder engagement policy. He noted broad support for all paragraphs except two, relating to the accreditation process for non-accredited stakeholder organizations. He also expressed appreciation to Member States’ efforts to find agreement, and highlighted the importance of transparency, accountability and inclusivity in developing an effective policy.

The Chair of the ad hoc working group on programmatic, budgetary, and administrative matters, H.E. Pedro Leon Cortes Ruiz, Ambassador of Colombia, briefed the Executive Board on the key areas under consideration, including financial updates, the draft UN-Habitat work programme for 2026, consultations on the draft Strategic Plan 2026-2029, and operational activities. He also emphasized the discussions by the group on funding opportunities for UN-Habitat, the relationship between normative and operational work, and the need for a sustainable resource base.

Interventions by Member States

BRAZIL expressed gratitude for the Chai’s efforts and stressed the need for formal resolutions to ensure consistency and fairness in stakeholder inclusion; expressed support for the focus of the draft Strategic Plan 2026-2029; and recognized the importance of the Programme’s normative work.

MEXICO highlighted the importance of transparency and cautioned against the misuse of consensus during decision-making.

FRANCE supported stakeholder inclusion and suggested that the Stakeholder Engagement Policy should ensure that objections to participation are made public to ensure transparency.

MOROCCO emphasized the importance of preserving the intergovernmental nature of UN-Habitat and of protecting state sovereignty, while supporting consensus-based decision-making.

SWEDEN underscored the important role of civil society and hoped for consensus on a progressive stakeholder engagement policy.

KENYA highlighted the importance of engaging civil society and local communities without compromising state sovereignty; underscored the importance of a predictable financial framework for UN-Habitat; and called for increased non-earmarked funding.

COLOMBIA noted the importance of the stakeholder engagement policy for inclusive urban policies and encouraged collaboration among a diverse range of stakeholders.

TÜRKIYE reaffirmed support for a legal opinion regarding the accreditation procedure in the stakeholder engagement policy, and committed to constructive contributions.

EGYPT emphasized the need to uphold the intergovernmental nature of UN-Habitat and safeguard sovereign rights in accreditation processes.

ALGERIA supported a consensual process for developing the stakeholder engagement policy that respects the sovereignty of Member States and committed to constructive collaboration on this work with other Member States.

CHINA welcomed stakeholder participation and emphasized the importance of clarifying stakeholder engagement principles; supported the focus of the draft Strategic Plan 2026-2029 on housing, land and basic services; and expressed interest in providing greater financial and technological support to UN-Habitat including on smart cities.

ARGENTINA sought clarification on stakeholder engagement and accreditation in the new policy, particularly for local authorities, and advocated for a balanced outcome.

MOZAMBIQUE, on behalf of the African Group, emphasized the importance of inclusivity, sovereignty, and consensus in finalizing the stakeholder engagement policy.

IRAN stressed the importance of transparency and effectiveness, ensuring the policy respects legal frameworks and sovereign rights.

The meeting decided to take note of the reports of the chairs of the ad-hoc working groups.

Agenda item 4: Financial, budgetary and administrative matters.

The Executive Director opened the agenda item and expressed gratitude to Member States for their support. UN-Habitat presented five comprehensive reports covering financial status, staffing, recruitment, and audit.

UN-Habitat indicated that its total revenue for 2024 amounted to USD 208.6 million, with expenses totalling USD 195.1 million, resulting in a surplus of USD 13.5 million. The Organization reported that net fund balances at the end of 2024 stood at USD 460.8 million. In response to the UN Secretariat’s liquidity crisis, with cash allocations under the regular budget expected to decrease by 20 per cent and reach only 80 per cent, UN-Habitat implemented strategic financial management measures, including reducing non-post costs, freezing vacant positions, and reallocating funds.

The financial situation, UN-Habitat noted, presented an opportunity to evaluate the role of the Foundation non-earmarked fund as a financial buffer. UN-Habitat reported that revenue under the Foundation non-earmarked fund amounted to USD 6.2 million, revised from the interim financial status report, with closing net assets reaching USD 9.1 million – the highest level since 2015. As UN-Habitat exceeded its re-costed budget of USD 4.7 million by USD 1.2 million in 2024, a loan repayment of USD 1.0 million to the Programme Support account was authorized, leaving a loan balance of USD 1.0 million at the end of 2024.

As of 31 December 2024, UN-Habitat had 320 staff members under Secretariat staff contracts, representing 69 nationalities across 45 duty stations. The Executive Director proposed merging the report on recruitment, equitable geographical distribution, and gender parity at UN-Habitat with the report on staffing as of 31 December 2024, as they contained overlapping information.

UN-Habitat further reported that it had closed 44 per cent of the Board of Auditors’ recommendations from 2017-2023, with intensified efforts in 2024. Staffing gaps had previously hindered a higher implementation rate, but these were addressed in 2024. The Organization further presented on noted trends in resource mobilization and budget preparations for 2026.

Interventions by Member States

EGYPT, on behalf of the Group of 77 and China, called for continued consultations on the stakeholder engagement policy and the draft Strategic Plan 2026-2029, emphasizing the need for regional implementation frameworks and capacity-building; urged the Executive Director to conclude the report on the status of the development of efforts to reconstruct human settlements in the Gaza Strip as per Decision 2024/6; condemned attempts to classify the forcible displacement of Palestinians as voluntary and stressed the need for collaboration with UN agencies for Gaza recovery; called for equitable geographical representation in staff composition; and warned against politicizing the Programme’s work.

EUROPEAN UNION and its Member States welcomed the stabilized financial situation of UN-Habitat and the increase in contributions to the Foundation non-earmarked fund; emphasized three key deliverables: the draft Strategic Plan for 2026-2029, the draft international guidelines on people-centred smart cities, and the development of UN-Habitat’s stakeholder policy, while also emphasizing the importance of UN-Habitat’s normative role.

MOZAMBIQUE, on behalf of the African States Group, acknowledged the financial constraints of the Organization; emphasized the need to bridge the gap and provide support to enhance efforts towards achieving urban goals and sustainable development; and noted that despite some improvements, the African States remained at a disadvantage and required more equal representation within staff composition.

STATE OF PALESTINE, on behalf of the Asia-Pacific States Group, commended UN-Habitat’s financial management and called for sustained resource mobilization; stressed the need for aligning the draft work programme for 2026 with regional priorities and called for capacity-development programmes and innovative financing mechanisms; urged UN-Habitat to align its report on the status of the development of efforts to reconstruct human settlements in the Gaza Strip as per Decision 2024/6; and welcomed internal management improvements, emphasizing equitable geographical representation and gender parity.

STATE OF PALESTINE, on behalf of the Arab States, commended UN-Habitat’s financial management and called for enhanced resource mobilization for essential programmes in the Arab region; highlighted the region’s rapid urbanization and challenges, emphasizing the need for capacity-development programmes, knowledge-sharing platforms, regional cooperation, and innovative financing mechanisms; stressed aligning the draft Strategic Plan for 2026-2029 with evolving urban challenges; called for expedited submission of the report on the status of the development of efforts to reconstruct human settlements in the Gaza Strip per Decision 2024/6, aligning recovery plans with the endorsed Arab Plan; welcomed internal management improvements; recognized progress in recruitment, geographical representation, and gender parity; and stressed the need for adequate representation of the Arab States in UN-Habitat’s workforce.

ARGENTINA disassociated itself from all paragraphs related to the Pact for the Future, the New Urban Agenda, and the non-legally binding Agenda 2030 not aligned with its principles; emphasized a new path marked by open markets, investments, and promoting value-added exports for a prosperous future; reaffirmed the principles of life, liberty, and private property.

MALAWI expressed concern about the deficit in the Foundation earmarked fund and sought clarification on measures to address it, as well as its impact on programming, particularly in Africa, and emphasized the importance of resource mobilization and of predictable, adequate funding.

ETHIOPIA commended UN-Habitat for improving gender and geographical balance and welcomed the development of the draft Strategic Plan 2026-2029 through a broad consultative process.

BRAZIL advocated for the implementation of the scalability model; emphasized the importance of gender balance at the P-4 and P-5 levels and of addressing structural inequalities and systemic barriers; highlighted the need for targeted recruitment strategies, noting the underrepresentation of the Latin American and Caribbean region; and inquired about measures to ensure equitable treatment of staff based on sex and sexual orientation.

EGYPT welcomed the consultative process for developing the draft Strategic Plan 2026-2029; stressed the need to avoid controversial terminology and politicization of the work and to focus on programmatic priorities; emphasized the need for further deliberations; and stated that they presently were not able to endorse the proposed guidelines on people-centred smart cities, citing a lack of expertise on human rights among the authors of the draft.

JAPAN welcomed the resolution of the negative balance of the Foundation non-earmarked fund and encouraged UN-Habitat to maintain a realistic budget while continuing to ensure a positive balance.

CAMEROON encouraged Member States to contribute to the Foundation non-earmarked fund according to their national capabilities; expressed concern about the refund of nearly USD 12 million, questioning why it was not transferred to the Urban Action Funding Window; noted that a single region dominates staff representation; commended UN-Habitat on implementing the Board of Auditors’ recommendations; and recommended swift action to ensure the implementation of the remainder.

MOROCCO requested UN-Habitat to elaborate on the 2025 deficit in the Foundation non-earmarked fund, particularly for post costs, questioning whether these emanated from existing or new posts; noted that one subregion in Africa drives high recruitment figures and called for a more effective and balanced recruitment process; and requested the Chair to permit Member States to speak without time constraints at the Executive Board.

MEXICO requested disaggregated data on expenses and segregated data on human resources for transparency; called for consideration of the interests of LGBTQ and vulnerable minorities; and expressed interest in expanding relevant databases.

FRANCE expressed appreciation for Member States’ contributions to the Foundation non-earmarked fund and inquired about the impact of the reduced allocation in the regular budget.

NIGERIA requested clarification on the definition of “emergency and high-priority countries” as stated in the Board of Auditors’ recommendation A/73/5/Add.5 Chap II Para 32, part (b).

SWEDEN emphasized the need for predictable, flexible, and multi-year funding; called for aligning ambitions with available resources; stressed the importance of transparency, clear reporting, and gender equality as a fundamental principle; and welcomed the Executive Director’s commitment to ensuring gender balance.

DEMOCRATIC REPUBLIC OF CONGO and SENEGAL encouraged further financial contributions to UN-Habitat. SENEGAL also highlighted the need for improved monitoring and transparency mechanisms, also adapted to the African context.

ANGOLA welcomed the implementation of austerity measures and noted the level of net assets.

GERMANY noted the delayed increase in financial revenue for 2024 and accordingly questioned the use of revenue as a key indicator in Executive Board decisions; welcomed the additional repayment of the loan under the Foundation non-earmarked fund; and stressed the importance of cautious and prudent budgetary decisions for long-term financial sustainability.

INDIA emphasized the need for the draft Strategic Plan 2026-2029 to align with global urbanization priorities and highlighted the importance of multilateralism.

KENYA noted efforts to improve the geographical representation of staff in UN-Habitat but emphasized the need for greater African representation and gender equality at higher levels and identified areas for improvement in audit recommendations.

IRAN emphasized the need for capacity-building and endorsed a consultative approach for driving programmes forward.

The meeting decided to take note of the reports and briefing relating to financial, budgetary and administrative matters.

Agenda item 5: Update on the draft work programme of UN-Habitat and the draft budget of the United Nations Habitat and Human Settlements Foundation for 2026

UN-Habitat presented an overview of its draft work programme and an update on the preparation of the United Nations Habitat and Human Settlements Foundation budget for 2026.

UN-Habitat emphasized that the work programme aligned with the focus areas of the Strategic Plan 2026-2029, highlighting new results related to land tenure security and key results from 2024 on water, sanitation, and hygiene services, as well as housing, land, and property rights. UN-Habitat also clarified that it would not be possible to modify the current sub-programmes in the work programme until after the adoption of the Strategic Plan 2026-2029.

UN-Habitat indicated that a draft of the work programme had been submitted to the UN Programme Planning and Budget Division in February 2025, taking into account guidance from the ad hoc working group on programmatic, budgetary, and administrative matters. UN-Habitat further noted that the working group would have an opportunity to refine the work programme in the lead-up to the third Executive Board session in November 2025.

UN-Habitat stated that the draft budget had been prepared in March 2025, following guidance received from the UN Controller in February 2025. The draft budget was being finalized with the UN Department for General Assembly and Conference Management and would be further reviewed by the Executive Board at its third session for the year 2025.

Interventions by Member States

MOZAMBIQUE appreciated the focus of the draft work programme on transformative changes and urban climate resilience, as well as the inclusion of the gender policy and plan.

BRAZIL commended the inclusion in the draft work programme of results focused on water, sanitation, and hygiene services, as well as multi-level governance.

MALAWI supported the focus of the draft work programme on adequate housing, climate resilience, and urban-rural linkages; welcomed the integration of gender-responsive policies; and encouraged UN-Habitat to continue to deepen and strengthen engagement between its headquarters and regional offices.

COLOMBIA appreciated elements of the draft work programme on housing deficits and climate change and called for the inclusion of more innovative financing frameworks and for all parties to continue to increase collaboration to promote local financing.

MALAYSIA reaffirmed its support for the implementation of the New Urban Agenda in the Asia-Pacific region; highlighted its financial contributions towards a regional New Urban Agenda platform; and offered to share its technical experience and expertise with other countries in urban areas such as housing, climate resilience, and digital transformation.

MEXICO appreciated the elements of the draft work programme related to housing, migrants, refugees, and urban crisis prevention; referenced decision 2024/6 and emphasized the importance of its follow-up; and recognized UN-Habitat for incorporating the humanitarian-development-peace nexus.