Target to double climate finance exceeded for second year in a row

Norway’s climate finance amounted to NOK 16.5 billion in 2023. This is NOK 2.5 billion more than the target pledged in 2021 to double our climate finance.

‘We need major investments in renewable energy in developing countries, and we need them now. This is the only way to cut emissions, expand access to electricity and at the same time ensure economic development. Norway is leading the way by stepping up its efforts in this area and increasing investments from Norfund through the Climate Investment Fund,’ said Minister of International Development Anne Beathe Tvinnereim. 

At the UN Climate Change Conference (COP26) in Glasgow in 2021, Norway pledged to double its climate finance from NOK 7 billion in 2020 to NOK 14 billion by 2026. This commitment is part of Norway’s contribution to the effort to combat climate change and support climate adaptation and mitigation in developing countries. 

Developing countries tend to be particularly vulnerable to climate change. These countries are also least responsible for the emissions that cause climate change. Furthermore, many developing countries do not have the financial resources to implement the necessary climate measures.

‘All countries need to implement the green transition. By increasing our climate finance, we are helping poorer countries to invest in renewable energy and climate adaptation projects. This reduces their vulnerability to climate change and promotes the transition to green solutions,’ Ms Tvinnereim said. 

Investments by Norfund through the Climate Investment Fund accounted for a substantial share of the increase in Norwegian climate finance in 2023. The main purpose of the Climate Investment Fund is to help reduce or avoid greenhouse gas emissions by investing in renewable energy in developing countries. 

Norway’s target to double its climate finance is part of a broader commitment made by wealthy countries to mobilise USD 100 billion in climate finance annually from 2020. It was announced in May that this target had been reached in 2022.

‘I am pleased that we can help to close the investment gap for green solutions in developing countries. Public authorities and the private sector must work together to cut emissions and address climate change. The efforts of Norfund are important in enabling developing countries to invest in renewable energy,’ said Minister of Climate and Environment Andreas Bjelland Eriksen. 

The amount of private capital mobilised will vary from year to year. Next year’s figures may therefore be below the target of NOK 14 billion.