3 Key areas and arenas

Norway – a sought-after and ambitious partner

Norway possesses resources, capabilities, and expertise that are both valuable and sought after. At the same time, Norway is one of the driving forces behind ambitious international climate co-operation and contributes on multiple fronts. Norway is an important donor to the global climate funds. Our development co-operation facilitates investments in renewable energy and capacity building in developing countries. The International Climate and Forest Initiative contributes to reduced and reversed loss of tropical forests and reduced greenhouse gas emissions. Norway co-operates with the EU and with partners in other regions. Norwegian businesses are contributing investments, expertise and innovative solutions for green transition. The foreign service missions translate Norwegian interests and priorities into concrete initiatives adapted to local conditions.

Like other countries, Norway must also strike a balance between various considerations. Norway is both an active promoter of ambitious international climate co-operation and a significant petroleum exporter. Trade-offs between energy security and the environment are not always easy. Norway actively supports the decision in the climate negotiations to transition away from fossil fuels in energy systems in a just, orderly and equitable manner, and implements measures to reduce its own emissions from the production and use of oil and gas and the demand for fossil fuels. Oil and gas remain important for global energy security until fossil energy can be replaced by renewable sources. In particular, Norwegian production of natural gas contributes to energy security, support for variable renewable power generation and lower emissions by making it possible to replace coal. Emissions from Norwegian petroleum production are declining, and measures have been established and are being actively pursued to further reduce emissions. The white paper on Norway’s climate policy towards 2035 (Meld. St. 25 (2024–2025) states that the Government’s plan is about phasing out emissions, not industries. The Government will therefore not prepare a strategy for the final phase of Norwegian oil and gas, but wants Norway to continue to be a stable and predictable supplier of oil and gas produced with low emissions, and a significant contributor to Europe’s energy security. The Government wants to ensure that Norway actively contributes to, and benefits from, the global energy transition that is necessary to achieve the climate targets. The fact that Norway has such an active climate policy sets us apart from several other petroleum exporters, makes us more relevant in several contexts and increases interest in the solutions Norway has to offer.

Norway must have the capacity, insight and expertise needed to make the right connections and trade-offs in key areas in a world where the framework conditions for the Foreign Service are changing rapidly. The foreign service missions play an important role both as listening posts that can provide insight into developments within their geographical area of responsibility and provide important context for Norwegian policy development, and as implementers of the policies that are adopted.

3.1 Climate, peace and security

Climate change is expected to have an increasing impact on the security policy situation and geopolitical developments. There is growing recognition that nature and climate are closely linked to security. Conflicts related to food security, water scarcity and access to resources are likely to intensify as the effects of climate change become more severe. Rising political unrest, migration, and greater conflict intensity are likely outcomes. Inequality between countries, groups and genders is also expected to increase. Deteriorating living conditions and loss of opportunities in climate-affected areas heighten the risk of radicalisation and facilitate terrorist recruitment. These factors may challenge existing response capacity and have a destabilising effect.

Co-operation on climate and environmental measures can create opportunities for conflict prevention and peace building. To date, few mediation processes and peace agreements have considered or incorporated climate aspects. However, there are examples of the inclusion of water and natural resource issues. Co-operation on common interests related to the management of natural resources and the effects of climate change can contribute to building trust between the parties in other, more controversial, areas. Opportunities must be actively developed to achieve this effect.

International organisations such as the UN, the EU and NATO are increasingly focusing on the security implications of climate change for preparedness and defence. Several regional organisations, such as the Organization for Security and Co-operation in Europe (OSCE) and the African Union (AU), have recognised climate as a security threat. As an elected member of the UN Security Council for the period 2021–2022, Norway identified climate, peace and security as a thematic priority area. Norway contributed to strengthening the analytical basis and the UN’s efforts, e.g., the deployment of climate and security advisors in selected UN operations. The EU defines climate as a key security challenge. This is reflected in several plans and initiatives, not least the Preparedness Union Strategy from March 2025.

War and conflict can result in major greenhouse gas emissions and can make it impossible to implement climate and environmental measures that in normal times safeguard nature, health, water and food. Conversely, climate change will affect where and how military power is used as changing climatic conditions could create new opportunities and limitations in operational capability and areas of operation. NATO recognises that the alliance’s core tasks will be challenged by global warming and has adopted the NATO Climate Change and Security Action Plan . A centre of expertise on climate change and security has also been established, see Box 3.1. In Norway, the defence sector has drawn up a joint climate and environmental strategy with an associated action plan.

The Foreign Service shall prioritise:

  • strengthening co-operation with relevant international and regional organisations on climate in a security policy context;
  • strengthening co-operation on climate action to build trust in conflict situations and in relevant peace processes;
  • increased emphasis and operationalisation of climate, peace and security as a cross-cutting issue in all relevant security organisations, and inclusion of climate in conflict analyses.

Boks 3.1 NATO Climate Change and Security Centre of Excellence (CCASCOE)

CCASCOE is a multinational hub of expertise located in Montreal, Canada. CCASCOE was established on 12 July 2023, when defence ministers and representatives from Canada (host nation), Denmark, France, Germany, Greece, Italy, Latvia, Luxembourg, Norway, Romania, Türkiye and the United Kingdom (sponsoring nations) signed the agreement on the establishment, frameworks and operation of the centre.

CCASCOE aims to become a leading centre of knowledge, expertise and co-operation. The centre is to facilitate dialogue between various sectors and contribute to the understanding and operationalisation of how member countries must adapt and further develop defence structures, as well as contribute to emission reductions from the defence sector.

Norway is one of the sponsoring nations of CCASCOE, and the Ministry of Defence has seconded personnel to the centre.

Climate Change and Security Centre of Excellence

3.2 Climate in polar regions

Norway has territories in both the Arctic and Antarctica, and prioritises co-operation on research and monitoring to enhance knowledge about climate change in both areas. The Arctic is warming three to four times faster than the global average. This will have a major impact on nature, biodiversity and the populations in the High North. Shrinking sea ice areas and rising temperatures are making the High North more accessible, and for longer periods of the year. This affects the opportunities for civilian and military activity, which can also have significant security policy consequences.

The Arctic Council is one of the most important arenas for international climate co-operation on the Arctic. The first report on the consequences of climate change in the Arctic was prepared under the auspices of the Arctic Council and published in 2004. Since then, a number of new reports and updates have been produced that summarise knowledge about climate change in the Arctic. An updated Arctic climate change report was published in 2025. The Ministry of Foreign Affairs leads and coordinates the Government’s efforts in the Arctic Council, with climate as a long-term priority. Norway held the Chairship of the Council from 2023 to 2025 with oceans , climate and the environment , sustainable economic development and people in the north as thematic priorities. The working and expert groups of the Arctic Council are responsible for a broad knowledge production on climate change in the Arctic and its consequences. Among other things, this knowledge contributes to the knowledge base in the climate negotiations.

Norway has contributed to putting climate change on the agenda in the Antarctic Treaty System organisations. Norway is working to ensure that climate issues are addressed broadly, from the impact of climate change on Antarctic ecosystems and the importance of managing and protecting the Antarctic environment, to the need for increased knowledge and understanding of the global consequences of local and regional changes in Antarctica. This applies especially to the impact on global sea level rise.

In order to limit the consequences of climate change, including in polar regions, it is crucial that Norway and all other countries contribute to reducing global emissions and achieving the temperature target of the Paris Agreement. In order for international polar climate co-operation to be effective, we must ensure the necessary external frameworks such as peace, stability and international agreement on the principles of international law.

The Foreign Service shall prioritise:

  • promoting Norway’s role and perspectives as a leading polar research nation and agenda-setter in issues relating to the Arctic and Antarctica internationally;
  • contributions to strengthened regional co-operation in the northern Nordic region on climate and sustainable economic development within energy production, industrial development and transport;
  • facilitating international research co-operation on climate and the environment as an important knowledge base for administration and policy in the Arctic and Antarctica;
  • working to ensure that the parties to the Antarctic Treaty continue to prioritise climate change issues in Antarctica.

3.3 Green transition, trade and co-operation with the EU

Green transition means restructuring the entire economy so that resources are used more efficiently and greenhouse gas emissions are reduced through the effective use of policy instruments such as carbon pricing and other measures. The Foreign Service can play an important role by helping to strengthen international agreements, partnerships and necessary framework conditions; assisting Norwegian companies in disseminating green technologies worldwide and seizing market opportunities created by green transition; and serving as a listening post to learn from other countries’ experiences.

Trade

Trade contributes to the development and spread of technology, goods and services that can reduce greenhouse gas emissions, but can also contribute to greenhouse gas emissions and environmental impacts, depending on how it is conducted. The Norwegian 2050 Climate Change Committee recommended that trade policy be developed to support the transition to a low-emission society and a circular economy. It is a priority for Norway to put climate and environmental issues higher on the agenda in the World Trade Organization (WTO) to support international climate and environmental commitments. The Foreign Service has an important role to play in these efforts, and can support high ambitions for trade-related climate and environmental measures in Norway’s trade agreements, including following up the goals of the Paris Agreement, ensuring that climate and environmental issues are on the agenda in trade policy discussions, and helping to ensure that traderelated policy instruments are promoted as part of achieving the climate goals.

Co-operation with the EU

The EU is Norway’s foremost co-operation partner on climate and environment. This co-operation is key to Norway’s green transition, and important frameworks for Norwegian climate, industrial and energy policy are established in the EU. The EEA Agreement is the cornerstone of Norway’s relationship with the EU and is of crucial importance for Norwegian businesses’ access to and opportunities in the European single market.

Around 80 per cent of Norwegian climate and environmental legislation is based on EU legislation incorporated into the EEA Agreement. Norwegian companies have been part of the EU Emissions Trading System (EU ETS) since 2008 through the EEA Agreement. About half of Norway’s emissions are covered by the system. In 2019, Norway, the EU and Iceland formalised a climate agreement that extends Norway’s co-operation to other aspects of EU climate policy until 2030. Norway will continue to co-operate broadly with the EU on matters relevant to climate and the environment. Norway will continue to participate in the EU ETS after 2030, and the Government intends to continue Norwegian participation in the other parts of EU climate legislation after 2030. Norway is connected to the EU’s legislation for a circular economy, an important measure of which is a framework for sustainable products and value chains.

The EU’s climate and environmental targets remain, but the political ability and willingness to implement more comprehensive climate measures is under more pressure than before. The need for secure value chains and strengthened security and defence has become more urgent and has heightened awareness of, e.g., the need for pragmatism and the effective use of policy instruments. The costs of many types of emission reduction projects have risen. Despite this, the green transition is making good progress in Europe. It is in Norway’s interest that the EU succeeds with its green transition. This will provide space for positive spillover effects for both businesses and the climate.

There is a common recognition in Europe that competitiveness must be strengthened. At the start of 2025, the European Commission presented two important policy documents: The Competitiveness Compass is a strategic framework that will guide the EU’s work on competitiveness over the next five years. The three pillars of the Competitiveness Compass are innovation, decarbonisation and security. The Clean Industrial Deal is a comprehensive plan to accelerate decarbonisation, reindustrialisation and innovation, accompanied by an Action Plan for Affordable Energy. These plans affect Norway and Norwegian interests broadly, given our co-operation with the EU through the EEA Agreement and integration into the European single market. The initiatives emerging from the Clean Industrial Deal could create major opportunities for Norwegian businesses in the form of goods, services, technology and expertise.

Another important framework for Norway’s co-operation with the EU is the Green Alliance , which was signed in April 2023 to strengthen co-operation on climate, energy and industry. The alliance has a broad scope, but at the same time is specific about the opportunities for co-operation in CO 2 management, offshore wind, hydrogen, critical raw materials, batteries and green shipping. The follow-up of the Green Alliance and bilateral partnerships with selected EU countries may be mutually reinforcing and should be understood in context.

The role of businesses and strategic export initiatives

To succeed with the green transition, efforts must take place within the new realities of increased rivalry, protectionism, and the need for economic security. This means that industrial development and green transition must be viewed in the context of foreign and security policy in building good, long-term relationships with close partners, both bilaterally and in international organisations. Commercial cooperation and competition in international markets will likely go hand in hand with measures for economic security and favouring domestic industry and technology. This requires close contact between Norwegian authorities and Norwegian businesses. For Norwegian businesses, it is important to continuously assess their exposure to uncertain markets and suppliers, and to harness the opportunities created by the green transition. The Foreign Service can assist in understanding local conditions, especially in countries where Norwegian businesses have limited experience.

Industry and businesses play a crucial role in the implementation of virtually all emission-reducing measures. Norwegian companies’ activities abroad are thus an important component of Norway’s contribution to the global green transition. The Foreign Service plays an important role as a knowledge base and facilitator for businesses, including on legislative challenges and market opportunities. Norwegian actors that contribute to green transition internationally can sometimes benefit from assistance from the Foreign Service in terms of contextual understanding, branding and contact with authorities.

The entire business-oriented policy instrument system – “ Team Norway ” – works together to help position Norwegian businesses in prioritised sectors. Norwegian businesses possess considerable expertise in renewable energy and other green technologies, and export initiatives have been identified that align closely with Norway’s international contribution to the green transition. It is important that the Foreign Service has a solid understanding of the technologies and solutions offered by Norwegian businesses, in order to help promote them, particularly in priority countries and markets.

Carbon capture and storage (CCS) is another key initiative in which Norway is a global leader. Norway aims to promote CCS as an important climate measure in Europe and internationally. The Foreign Service can contribute by highlighting Norway’s long-standing commitment to CO 2 management, identifying opportunities and positioning Norwegian actors in new value chains.

Green diplomacy

A strong pace of transition in Europe is not sufficient. Co-operation also takes place outside the EU and EEA. Topics include co-operation in multilateral processes, carbon pricing, oceans, forests and plastics. Norway’s bilateral partnerships, participation in international climate processes and the green initiatives of Norwegian businesses are important Norwegian contributions to the transition globally.

Norway benefits from having a level of green diplomacy comparable to other Nordic and likeminded countries. This can also strengthen Norway’s position in international economic and commercial competition. It is in Norway’s broader foreign policy interest to have bilateral partnerships and co-operation that can cover several topics, including climate, energy, industry and green transition, with a limited number of countries of particular relevance to Norway. Internationally, such partnerships are growing rapidly. They provide a political framework and structured engagement with authorities at a time when framework conditions, patterns of co-operation, and markets are changing rapidly, and when policy areas are becoming increasingly interconnected. They can be a useful complement to free trade agreements. The management of the partnerships is handled within the framework of the existing division of responsibilities between the government ministries and adapted to available resources.

EEA Grants

Through the EEA Grants, Norway supports social and economic equalisation in 15 countries in the EEA together with Iceland and Liechtenstein. A new agreement on EEA Grants 2021–2028 was signed in autumn 2024. The green transition will continue to be one of three main priority areas, as well as helping countries to fulfil their national and international commitments. The green transition will also be included in programme areas such as research and education, culture, civil society, crisis prevention and preparedness, and capacity building.

The Foreign Service shall prioritise:

  • highlighting Norwegian companies that offer technologies and solutions for the energy and industrial transition, and to help make these solutions known;
  • elevating climate policy issues and objectives on the trade policy agenda to enhance the contribution of trade agreements and trade policy to achieving climate goals;
  • utilising the potential of the Green Alliance as an instrument for strengthening relations with the EU and for co-operation outside the EU and EEA within relevant thematic areas;
  • Norway’s affiliation and participation in relevant parts of the EU’s revised platform for a green transition (Clean Industrial Plan);
  • continuation, within the framework of Norwegian interests and available resources, of work on bilateral partnerships and co-operation with prioritised countries, where green transition, climate, energy, industry and mobility can be included in whole or in part;
  • the development of a strategy for the Foreign Service’s work on CO 2 management;
  • utilising EEA Grants to continue promoting green transition in the countries covered by this co-operation.

3.4 Climate in development policy

It is becoming increasingly difficult to envisage sustainable poverty reduction without taking into account climate and the environment. A World Bank study 1 estimates that 132 million people – more than half of whom live in sub-Saharan Africa and South Asia – could be pushed into extreme poverty by 2030 due to climate change. Norway’s development policy is grounded in the 2030 Agenda and the Sustainable Development Goals. Efforts are concentrated on reconciling climate and development policy, prioritising renewable energy, food security, combating inequality, strengthening women’s rights, providing humanitarian assistance and combating infectious diseases.

Norwegian efforts will vary between different partner countries. Policy instruments such as the Norwegian Climate Investment Fund and the Norwegian Sovereign Guarantee Scheme for Renewable Energy in Low- and Middle-Income Countries (see section 3.4.4) will primarily target middle-income countries. This is where the emission benefits of green transition are greatest, and it is easier to mobilise private capital for these countries than for low-income countries. Protection of tropical forests must take place where the forests are located, which means that upper middle-income countries such as Brazil and Indonesia, but also low-income countries such as the Democratic Republic of Congo, have become important development partners. In the poorest countries, climate change adaptation will be prioritised to a greater extent.

Developing countries must also make trade-offs between short-term gains and long-term considerations. Poverty reduction in the short term can occur at the expense of sustainable solutions in the longer term. As a development partner, Norway recognises this concern, while giving priority to the funding of efforts where climate and poverty reduction considerations are mutually reinforcing.

Both poverty and climate change affect women and men differently. Therefore, the gender equality perspective must be taken into account as a cross-cutting consideration and priority by contributing to the implementation of the Ministry of Foreign Affairs’ Action Plan for Women’s Rights and Gender Equality in Norway’s Foreign and Development Policy (2023–2030) , including women’s right and opportunity to participate in climate action.

3.4.1 Climate change adaptation, food security and global health

Climate change adaptation and the prevention and management of climate-related loss and damage must be at the centre of development co-operation and global climate action – at the same time as emissions must be reduced. The gap between current action and what is required to achieve climate-resilient development continues to grow. It is particularly important to support climate change adaptation efforts in Least Developed Countries (LDCs) and Small Island Developing States (SIDS), which are the most vulnerable countries. Increased support for climate change adaptation and loss and damage is one of the clearest demands from developing countries in the international climate negotiations. Norway has set the framework for its efforts in a separate Strategy for climate change adaptation, disaster risk reduction and the fight against hunger.

Food , both from land and water, is fundamental to quality of life, health and economic growth, and affects social stability, preparedness and security policies. Food systems account for approximately one-third of greenhouse gas emissions, 70 per cent of terrestrial biodiversity loss and consume 70 per cent of freshwater resources. Integrating climate considerations into food systems is highly complex. It is nevertheless crucial, especially for the most vulnerable societies to succeed in adapting to climate change and reducing emissions and environmental degradation. Climate change is rendering communities and small-scale food producers more vulnerable, and temperature changes are impacting ecosystems both on land and in the sea. Small-scale farmers and other land-based food producers, along with coastal communities and fishers, need measures that support climate change adaptation and climate resilience to ensure long-term local and regional food security.

Climate change and environmental degradation are the greatest threat to human health today. Extreme weather, pollution, diseases and antimicrobial resistance – partly attributable to climate change – are increasing in frequency. Low- and middle-income countries are particularly vulnerable and are prioritised in Norwegian efforts. Through, among others, the World Health Organization and the Norwegian Institute of Public Health’s co-operation with selected counterpart organisations, Norway contributes to monitoring, early warning and response to climate-related health challenges. Norwegian efforts for climate-resilient health systems strengthening are an important contribution to addressing climate-related diseases, mental health, and antimicrobial resistance for vulnerable groups in low-income countries.

The Foreign Service shall prioritise:

  • implementation of Norway’s strategy for climate change adaptation, disaster risk reduction and the fight against hunger;
  • implementation of Norway’s strategy for food security in development policy, including increased local climate-resilient food production, processing to reduce food waste and support for local and regional trade;
  • emphasising the importance of climate and health across sectors, contribute to sharing research-based knowledge on climate and health, and promote a focus on climate in educational co-operation.

Boks 3.2 Weather index insurance schemes

Weather index insurance schemes are used in climate change adaptation efforts as part of the management of climate-related disaster risk. Instead of a reactive approach, the goal of weather index insurance is to pay out quickly after a weather-related disaster occurs. This is made possible by the use of pre-agreed parameters (triggers) such as wind speed and precipitation. Such schemes involve a form of risk sharing, since disasters do not usually occur simultaneously in all countries that take out insurance with the same insurance company. Thereby, the financial burden of unexpected events is distributed among a larger number of actors, and countries that take out insurance can better manage the financial consequences of unforeseen events and promote economic stability and resilience.

Norway supports two initiatives on insurance schemes in Sub-Saharan Africa. Through support for the African Development Bank’s Africa Disaster Risk Financing (ADRiFi) programme, we enable countries to take out insurance with African Risk Capacity, a Specialized Agency of the African Union that provides parametric insurance services. The support includes subsidising insurance premiums and country level capacity building in risk modelling and management, enabling countries to make informed decisions on transferring climate-related disaster risk to the market. To complement this initiative, Norway supports African Risk Capacity Ltd. so that more countries in Africa can take out insurance and work on more solutions for disaster risk financing. As a result of the insurance purchased by countries, small-scale farmers affected by drought, floods, or tropical cyclones receive payouts or food assistance.

3.4.2 Inclusive economic growth and access to sustainable energy

Inclusive economic growth creates jobs, benefits the entire population and is crucial for poverty reduction. Nearly 700 million people lack access to electricity and over 2 billion people rely on polluting fuels for cooking. Access to reliable, sustainable and modern energy at an affordable price is key to both economic and social development. How developing countries design their energy systems and determine their energy mix will play a critical role in shaping future greenhouse gas emissions and the possibility of achieving the climate goals. Many developing countries have significant potential to develop renewable energy. At the same time, fossil fuels can still play an important role in ensuring access to modern energy, including for clean cooking, stable power supply and transport.

Development aid can play an important role in accelerating access to renewable energy and other climate-friendly solutions, enabling faster and larger-scale deployment than what the market or developing countries alone could achieve. While Norway respects the energy policy choices and climate plans of developing countries, its development policy aims to promote renewable energy – both to combat energy poverty and to reduce greenhouse gas emissions. Sub-Saharan Africa is given particular priority, as it faces the highest levels of energy poverty. Most energy assistance is aimed at mobilising private investment. Access to clean cooking is also prioritised.

Norway has joined several international initiatives supporting the phase-out and transition away from fossil fuels. Guidelines have been developed which, among other things, entail that development co-operation normally does not include support for fossil fuels, with the exception of special circumstances, such as humanitarian crises. From 2025, Export Finance Norway (Eksfin) will no longer finance new unabated oil and gas projects.

The Foreign Service shall prioritise:

  • contributing to inclusive and sustainable economic growth, job creation and decent work in our partner countries, especially in the sectors of agriculture, renewable energy, ocean-based and sustainable technology-intensive industries, and sustainable digitalisation;
  • supporting the development of, and access to, affordable renewable energy as a basis for inclusive economic growth and as a contribution to reducing greenhouse gas emissions;
  • supporting the development of public administration and good framework conditions for business development related to the follow-up of the Sustainable Development Goals.

3.4.3 Climate considerations in humanitarian response

The poorest areas of the world are the most vulnerable to the adverse effects of environmental degradation and climate change. Climate change can create new, and exacerbate existing, humanitarian crises. More frequent natural disasters and more extreme weather events have immediate humanitarian consequences and often pose an acute threat to life and health. The humanitarian consequences will intensify in step with the Earth’s rising temperatures. Climate finance should to a greater extent reach the most vulnerable communities and contribute to enhanced climate resilience. This also applies in areas affected by armed conflict.

Humanitarian disasters and response put pressure on the environment and the natural resource base, e.g., by making those affected dependent on firewood for cooking or heating. This can contribute to resource conflicts and forest degradation with increased emissions. Short-termism in the planning of humanitarian operations may result in the use of polluting solutions, such as diesel generators.

Green humanitarian response imposes requirements for energy efficiency, maintenance needs, and waste management and emissions. Local procurement and production of emergency aid products reduces emissions related to logistics. Models of circular economy should be developed for the handling of plastic products and packaging materials. Repairability, maintenance and waste management should be emphasised when purchasing goods.

The Foreign Service shall prioritise:

  • contributing to the implementation of the Government’s Humanitarian Strategy, including the work on the humanitarian consequences of climate change;
  • being a driving force in ensuring that environmental and climate-related considerations are safeguarded in all stages of the humanitarian response, including in restoring critical infrastructure;
  • co-operation with local actors and humanitarian partners to facilitate and set requirements for the selection of sustainable, renewable and more environmentally friendly solutions.

3.4.4 Climate finance

Norwegian climate finance is delivered through both multilateral and bilateral channels. Contributions to the funds and financial entities established under the UNFCCC – including the Green Climate Fund, the Adaptation Fund, and the Fund for responding to Loss and Damage – as well as to the Global Environment Facility (GEF), are key components of Norwegian climate finance. Since 2008, Norway’s International Climate and Forest Initiative has been Norway’s largest international environmental and climate initiative. The Norwegian Investment Fund for developing countries, Norfund , is one of Norway’s most important instruments for investing in activities that contribute to job creation, poverty reduction and green transition. Among other things, Norfund manages the Climate Investment Fund, which aims to maximise avoided emissions through investments in renewable energy. In 2024, the Government established the Norwegian Sovereign Guarantee Scheme for Renewable Energy in Low- and Middle-Income Countries with a guarantee budget of NOK 5 billion over 5 years. The aim is to increase investment and mobilise private capital in renewable energy in developing countries.

Norway supports climate finance through the multilateral development banks by providing capital contributions, core support to the banks’ funds for the poorest countries, and earmarked funding. The World Bank is the largest lending institution for climate initiatives in low- and middle-income countries, and aims for 45 per cent of its total financing to be climate-related. The regional development banks aim for climate finance to account for between 40 and 60 per cent of total financing. Norway has long been a prominent actor in the UN’s processes for financing for development, including as a facilitator of the outcome documents for the major UN Conferences on Financing for Development in 2015 and in June 2025.

Large and increasing financial flows to climate initiatives in countries with weak institutions and limited transparency entail a significant risk of corruption. Enhancing transparency and anti-corruption measures in partner countries is essential to ensure the effectiveness of climate finance. This will help ensure that public funds, including those mobilised nationally, are managed responsibly and in fact appropriated for sustainable climate action.

The Foreign Service shall prioritise:

  • active board participation in the multilateral development banks and multilateral financing mechanisms to help ensure continued strong prioritisation of climate and vulnerable countries;
  • co-operation with the funds and financial entities established under the UNFCCC, and the development of dedicated strategies for board work – with particular emphasis on streamlining, including simplifying access to funding for developing countries;
  • continuing Norway’s active involvement in financing for development processes in the UN, including with a view to maintaining a strong emphasis on climate and sustainability;
  • assisting in the co-operation with countries under Article 6 of the Paris Agreement, through the Norwegian Global Emission Reduction Initiative (NOGER);
  • efforts to promote transparency and anti-corruption measures in the allocation and appropriation of climate finance.

Boks 3.3 Financing of emission reductions under Article 6 of the Paris Agreement

The emission reductions set out in countries’ Nationally Determined Contributions (NDCs), along with public contributions to climate finance, are currently insufficient to meet the Paris Agreement’s temperature target. More needs to be done. Article 6 of the Paris Agreement allows countries to voluntarily cooperate on emission reductions that are transferred between countries for use towards emission targets. This is also known as carbon trading. This type of co-operation enables both host and buyer countries to raise their ambition by setting more ambitious climate targets and implementing more mitigation measures than would otherwise have been possible. This can help accelerate and expand the global green transition and increase private investments in green solutions to achieve the Paris Agreement’s temperature target.

Through the Norwegian Global Emission Reduction Initiative (NOGER), Norway contributes directly to emission reductions and green transition in developing countries in line with Article 6 of the Paris Agreement. NOGER can help mobilise private investment by improving the overall framework conditions, thereby improving the conditions and profitability for private investment. Climate initiatives funded by NOGER shall contribute to additional and lasting emission reductions.

The Ministry of Climate and Environment has been authorised to allocate NOK 8.2 billion to this work and practices results-based financing, whereby disbursements are made based on verified reductions in greenhouse gas emissions. The funds are allocated outside the development aid budget.

The emission reductions can contribute to the Storting’s target of Norway becoming climate neutral from 2030. In the event that EU co-operation does not fully close the gap to the 55 per cent emission reduction target, they can be used to offset any shortfall in meeting Norway’s 2030 targets under the Paris Agreement.

Read more on NOGER: Norwegian Global Emission Reduction Initiative – regjeringen.no

3.5 Climate, nature and pollution

The climate, nature and pollution crises are deeply interlinked and must be understood in context. Climate change and pollution are two of the biggest drivers of biodiversity loss. At the same time, the degradation of nature and its ecosystems will result in increased emissions, which in turn exacerbates climate change. In some contexts, measures can contribute to improvements in several areas simultaneously. For example, efforts to reduce super pollutants – such as the short-lived climate pollutants methane, black carbon, and groundlevel ozone – can help lower greenhouse gas emissions while also reducing local pollution.

Preserving ecosystems – both in terms of scale and ecological integrity – is essential for climate-resilient and sustainable development, and a key premise for the green transition.

The circular economy plays a crucial role in the transition to a low-emission economy. According to the International Resource Panel, the world’s consumption of resources is the main driver of climate change, pollution and biodiversity loss. There is a need for environmental costs to be priced into goods in the global market. Norway has long advocated for stronger international commitments on sustainable production, consumption, and waste management, including in the negotiations for a UN Plastics Treaty.

The ocean is essential to the functioning of the global climate system. The ocean captures over 90 per cent of the excess heat generated by global warming, and absorbs about a quarter of all anthropogenic carbon dioxide emissions. The ocean also produces half of the oxygen we breathe and is home to millions of species. If the climate goals are to be achieved, we must preserve the ocean’s capacity to sequester carbon dioxide and regulate the climate. Norway has an international leadership role in oceans management, including as co-chair of the High-level Panel for a Sustainable Ocean Economy , and as a major seafood exporter. A key objective is the comprehensive and sustainable management of 100 per cent of all national marine areas. Norway’s decades-long efforts in the UN General Assembly, specialised agencies such as the Food and Agriculture Organization (FAO) and the International Maritime Organization (IMO), as well as in regional organisations, support this objective.

Many of the same issues are often raised in various international climate and environmental negotiations, e.g., issues pertaining to financing, international law and geopolitical challenges. The language used in climate negotiations tends to find its way into other negotiation processes. The Foreign Service has an important task in helping to ensure consistency in Norwegian positions across the various negotiation processes.

The Foreign Service shall prioritise:

  • emphasising the interrelationships between climate, nature and pollution, to ensure as far as possible that activities in one area do not adversely impact the others, and seek opportunities for positive interaction between the various areas;
  • to promote comprehensive and ecosystem-based oceans management in international ocean governance, including the sustainable use of marine resources, improved oceans management in partner countries and combating illegal, unreported and unregulated fishing and fisheries crime;
  • promoting an ambitious UN Plastics Treaty and effective compliance;
  • contributing to the achievement of the objectives of Norway’s Climate and Forest Initiative by communicating the importance of this work, fostering key partnerships and multilateral efforts, and analysing challenges and opportunities;
  • strengthening efforts to ensure consistent positions across negotiation processes.

Boks 3.4 Norway’s Climate and Forest Initiative

Since its inception in 2008, the Climate and Forest Initiative has been Norway’s largest international climate and environmental initiative. The initiative is funded through the development aid budget and totalled NOK 4.1 billion in 2024. Norway aims to be a long-term, reliable partner for tropical forest countries. Therefore, the Government has decided that Norway will extend its efforts to reduce deforestation in tropical countries towards 2035.

Deforestation accounts for around 10 per cent of the world’s greenhouse gas emissions, around four times more than global air traffic. Reduced emissions and carbon sequestration from forests and the land use sector could contribute as much as a third of what is needed to reach the Paris Agreement’s temperature target. Tropical forests are home to more than half of the world’s animal and plant species, and new species continue to be discovered. The forests are home to thousands of groups of indigenous people and provide a livelihood for millions of people. The tropical forests also contribute to maintaining the weather systems that provide rainfall in key agricultural areas.

Norway works through bilateral partnerships with authorities in a number of important tropical forest countries, in addition to co-operation with multilateral institutions and civil society. Norwegian efforts are yielding good results. Several of Norway’s close partner countries have significantly reduced deforestation in recent years. This contributes to the achievement of global climate and biodiversity goals, to sustainable development, and to strengthening the rights and living conditions of indigenous peoples. In addition, Norway has contributed to:

  • the recognition of indigenous peoples’ rights to manage their forests;
  • increasing the demand for deforestation-free products in the global commodity markets;
  • increased efforts against forest crime;
  • ensuring that tropical forests are high on the global agenda;
  • global access to high-resolution satellite imagery of all rainforests.

The next decade is critical for tropical forests. Population growth and increased consumption lead to greater demand for food and fuel. The competition for new land will intensify, and pressure on forest areas will continue to increase. Climate change is also a threat to forests. Fears are growing that the Amazon is reaching a tipping point where the rainforest will collapse. Precipitation is decreasing, and the forest is becoming drier and more prone to forest fires. In 2024, Brazil experienced its worst drought since nationwide measurements began 70 years ago.

Norway’s International Climate and Forest Initiative (NICFI) – regjeringen.no

3.6 Co-operation, partnerships and influence

The UN and the multilateral development banks are the most important global multilateral arenas for Norwegian climate action. Norway also participates in regional institutions such as the African Union (AU) and the Association of Southeast Asian Nations (ASEAN). In our own region, in addition to the EU, co-operation in regional organisations such as the Organization for Security and Co-operation in Europe (OSCE) and the Council of Europe is important. Co-operation with the other Nordic countries is particularly close, e.g., through the Nordic Council.

Climate is on the agenda as a standalone topic or an integrated dimension across virtually the entire UN system and the multilateral development banks. Recent geopolitical tensions have had an adverse impact on all arenas. In addition, funding for the UN and other multilateral organisations is being reduced. The landscape of actors is constantly changing. There is reason to believe that, in the years ahead, the norms and priorities on climate established in multilateral institutions will come under increasing pressure. Norway’s position is to defend agreed norms and priorities against backsliding.

The UN’s role in establishing norms, knowledge, standards, agreements and arenas for follow-up is crucial to global climate action. The pressure on established norms and the changes in positions happen quickly and do not always follow the established political or procedural rules. This entails a risk of the UN being sidelined. The UN must be brought into a new era. As a major contributor to the UN, Norway has long worked to reform and modernise the UN. Preserving the UN is in Norway’s interest. The best way to do this is to challenge the UN’s leadership to adapt its operational and normative capacity to smaller budgets and to implement agreed reforms. Norway’s capacity to monitor key actors must be strengthened, and its efforts in alliance-building reinforced and renewed – particularly in contested areas such as climate change. Such co-operation can take place both with other likeminded countries and with other actors such as civil society.

Compromises in one UN agency will be repeated in others. Norway should oppose the introduction of new concepts that dilute the direction and ambition of climate policy. At the same time, in consultation with likeminded countries, we must avoid purely symbolic battles over the climate that could weaken both the UN as an arena and climate policy. The yardstick should be whether what is being promoted results in concrete changes.

The multilateral development banks are key partners for Norway in climate action as providers of climate finance and as normative knowledge actors. In the World Bank and the regional development banks, Norway co-operates closely with the other Nordic countries and other likeminded countries. Norway has helped to influence the bank to set ambitious climate finance targets and integrate climate across its operations by collaborating with other countries. Going forward, it will be important to build new and broad alliances with the aim of preserving and further strengthening the bank’s strong climate mandate, which is under pressure. A continued ambitious climate agenda will also be prioritised in the regional development banks.

The Organization for Economic Co-operation and Development (OECD) contributes to ensuring that climate action is guided by evidence-based decision-making. The International Energy Agency (IEA) provides key data and analyses for the transition to clean energy. For Norway, the OECD and the IEA are important arenas for knowledge sharing, standard setting and co-operation based on the fundamental values on which the organisations are built. Preserving these values is particularly important in a situation where the geopolitical landscape is in flux.

Bilateral co-operation and partnerships are particularly important in a rapidly changing landscape of actors and geopolitical situation. Norway has long worked with countries in other regions on practical climate measures, both bilaterally and in the form of various types of alliances and co-operation. Co-operation with the EU and green partnerships are discussed in more detail in section 3.3. Partnerships with countries with high emissions, such as India and China, and with countries that for other reasons play a key role in climate change, such as Brazil and Indonesia, are central to achieving the global sustainability and climate goals. Norway and China agreed to establish a formal dialogue on the green transition in 2024. The agreement serves as an overarching framework for the long-standing climate co-operation between China and Norway. With some countries, such as Brazil and India , co-operation agreements or action plans have been developed that also address climate change. However, there is both a need and an opportunity to co-operate with other countries where development is also progressing rapidly – albeit on a smaller scale – and which are at the forefront and capable of influencing others in their region. The Ministry of Foreign Affairs has drawn up a Strategy for Norwegian engagement with African countries which includes climate change, environmental issues, and clean energy.

Norwegian expertise, technology and specialist environments attract attention from countries and regions around the world. Many of them participate in various projects and co-operation initiatives, such as the Norwegian Institute of Bioeconomy Research’s (NIBIO) co-operations with Chinese agricultural universities to develop climate-adapted agricultural technologies. Regional specialised institutions can also be good co-operation partners. One example is the partnership with the International Centre for Integrated Mountain Development, which contributes to the dissemination of research and knowledge about climate change and biodiversity in the Hindu Kush Himalaya region, working in and for eight regional member countries – Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal, and Pakistan.

The Foreign Service shall prioritise:

  • building alliances, both multilaterally and bilaterally, based on and to preserve, established climate norms, commitments and priorities;
  • efforts to ensure that Norway’s political ambitions in the area of climate change are reflected in multilateral organisations, e.g., by strengthening co-operation in the governing bodies of the UN and the multilateral development banks in alliance with representatives from other countries to ensure that climate is prioritised in the work of the institutions;
  • being a supporter and driver for improving the effectiveness of the multilateral organisations’ climate action;
  • following up strategies and action plans with prioritised countries, continuing existing co-operation and assessing new joint efforts and partnerships in development co-operation with countries with which it is in Norway’s interest to strengthen climate co-operation, within the framework of available resources.

Boks 3.5 Norway’s climate partnership with Tanzania

Apart from the International Climate and Forest Initiative, Tanzania is the first country to enter into a climate partnership with Norway. The agreement signed in the autumn of 2023 marks a new phase in the co-operation, which began with a partnership on forests and climate in 2008. The partnership aims to support Tanzania in achieving its climate targets under the Paris Agreement. The main pillars involve strengthening Tanzania’s capacity to implement climate policy, improve access to climate finance and enhance climate knowledge, as well as to further develop sector co-operation in food production, renewable energy, climate change adaptation and the blue economy.

The climate partnership is an important framework for the goals of the Norwegian strategy for Tanzania (2024–2027), where one of the main goals is to build strategic partnerships with national institutions on climate, energy and climateresilient agriculture. It also includes support for clean energy in accordance with Tanzania’s National Energy Efficiency Strategy, as well as promoting Norwegian investments and support for local co-operation partners.

Climate change adaptation is a particular priority area. The co-operation includes strengthening climate research in Tanzania and increasing knowledge and capacity transfer. Agreements have been signed to promote nature-based solutions, improve Tanzania’s climate and weather forecasting services, and support small and medium-sized enterprises in developing local adaptation solutions.

The partnership is a useful tool for the Norwegian Embassy in Dar es Salaam’s dialogue with relevant authorities in the areas of environment, finance, energy, agriculture and oceans, as well as with other donor countries. This has increased Norway’s visibility in Tanzania and contributed to closer co-operation.