NOK 14.25 billion to the Fund for Climate, Renewable Energy and Energy Transition

In the National Budget 2016, the government has proposed an allocation of NOK 14.25 billion to the Fund for Climate, Renewable Energy and Energy Transition. The new grant will bring the fund’s capital to NOK 67.75 billion.

“Through this substantial investment in climate technology, the government is facilitating a more sustainable society. To encourage  trade and industry as well as private individuals to implement positive energy and climate measures, and to motivate technological innovators to develop new, forward-looking technology, we must give priority to this sector in the budget. The proposal will give increase the Fund by NOK 17.75 billion more than anticipated in the parliamentary climate agreement,” says Minister of Petroleum and Energy Tord Lien.

The Fund for Climate, Renewable Energy and Energy Transition is expected to generate a return of NOK 1,636 million in 2016. The government has proposed channelling NOK 1,506 million of this into Enova’s work on environmentally friendly restructuring of energy consumption and energy production and the development of energy and climate technology.

The government has also proposed using NOK 130 million of the return on the Fund to finance special climate projects outside of Enova:

• NOK 30 million for the CLIMIT Demo research programme, through the budget of the Ministry of Petroleum and Energy.

• NOK 20 million for a biogas project under the auspices of Innovation Norway, through the budget of the Ministry of Climate and Environment.

• NOK 80 million for feasibility studies of full-scale CO2 capture and storage projects, through the budget of the Ministry of Petroleum and Energy.