GLOBAL APPEAL 2025 EXECUTIVE SUMMARY I FINANCIAL REQUIREMENTS Flexible funding for emergencies In 2025, escalating conflicts, intensifying natural disasters and ongoing crises are expected to drive further displacement and suffering. In this context, quality and predictable funding will be essential for UNHCR to meet the growing needs of forcibly displaced people, particularly in responding to unforeseen emergencies and protracted crises. Unfortunately, with a significant reduction in unearmarked funding – the most valuable and flexible form of financial support – UNHCR faces serious challenges in meeting the overwhelming and urgent needs of displaced people worldwide. This is especially true for those caught in sudden, unanticipated crises as well as for the millions enduring protracted displacement, often far from the world’s attention, where flexible funding can mean the difference between life and death. In light of these challenges, UNHCR maintains its appeal to donors to commit to providing softly earmarked global emergency reserve pledges. These contributions will ensure that funds can be allocated flexibly, where and when they are needed most, enabling us to save lives, restore dignity and provide essential protection to those fleeing from or impacted by emergencies. Diversification of the donor base remains an issue of concern, and not just for UNHCR. In 2023, the top three donors contributed 55% of recorded humanitarian funding; the top five donors contributed 65%; and the top ten 78%. With regards to the public sector, UNHCR will continue to explore opportunities to diversify within governments and the EU by pursuing other additional funding sources that are equally suitable to finance its protection and solutions priorities. We will also continue to explore other pooled fund opportunities. To do so, UNHCR will invest in more capacity to meet the requirements of these donors. It is noted however that this track may well result in a higher percentage of earmarked and tightly earmarked funding, unless flexible funding also increases. Finally, UNHCR will continue to keep looking beyond the status quo and continue exploring more innovative ways of financing. Since 2019, our approach to innovative financing has enabled us to mobilize over $110 million in new funding, and it aims to catalyse over $500 million toward projects that bridge humanitarian, development and peacebuilding efforts from non-traditional donors such as development agencies, multilateral development banks and private sector partners. UNHCR has employed new financing mechanisms such as endowments, revolving and blended finance funds, and guarantee facilities to support a number of thematic priorities. UNHCR GLOBAL APPEAL 2025 20