'There is a great need for more energy in Asia, and this guarantee makes it possible to invest in renewable energy that can meet this need without increasing greenhouse gas emissions,' said Minister of International Development Åsmund Aukrust. 

Norway is providing a USD 100 million guarantee. This allows the bank to free up capital and lend more than it otherwise could. The Norwegian guarantee is expected to unlock USD 450 million in new loans for renewable energy. 

Energy demand in Asia and the Pacific is growing, while fossil fuels still dominate the energy supply. More renewable energy can meet some of the growing demand while limiting greenhouse gas emissions. 

'This guarantee enables the Asian Development Bank to significantly increase its lending for renewable energy and illustrates that guarantees are a cost-effective form of development assistance,' said Aukrust. 

The agreement will be the third guarantee under Norway’s state guarantee scheme for renewable energy in developing countries.

FACTS

The Norwegian guarantee scheme for renewable energy

  • The guarantee is part of IF-CAP (Innovative Finance Facility for Climate in Asia and the Pacific Financing Partnership Facility), a scheme designed to enable the Asian Development Bank to finance more climate action in Asia and the Pacific. 
  • The scheme was established in 2024 as a five-year pilot scheme. 
  • Norad administers the scheme, which has a total guarantee limit of NOK 5 billion. 
  • At least 65 per cent of the guarantees must be provided in cooperation with multilateral development banks.

This text was translated with the assistance of artificial intelligence. While the translation has been reviewed by our employees, minor discrepancies may exist compared to the original Norwegian version.