The European Union is among the largest development partners of the United Nations Capital Development Fund (UNCDF), with more than €110 million in EU-supported programs active at UNCDF in 2021. The two organizations share numerous development priorities, including green economies, digital innovation, and sustainable growth and jobs, laying the groundwork for extensive collaboration in programs cutting across Africa, Asia, the Caribbean, and the Pacific.

The relationship is guided by a Strategic Partnership Agreement, which was signed in 2003. A further Financial and Administrative Framework Agreement (FAFA), signed in 2003, provides the overarching framework governing the contribution-specific agreements signed between the EU and UNCDF.