The government is aiming for Norway to double its total annual climate financing from NOK 7 billion in 2020 to NOK 14 billion by 2026. Climate finance will be one of the main issues during the Glasgow Climate Negotiations (COP26) from October 31 to November 12. The $ 100 billion annual funding target for rich nations for developing countries by 2020 has yet to be met. Developing countries need funding both to reduce greenhouse gas emissions and to adapt upcoming climate change.
Climate finance is important to developing countries
– An effort is needed to finance climate. A key pillar of the Paris Agreement is that rich countries should help those with the least resources to transition successfully. This requires both money and expertise, and Norway will contribute to this. The government will therefore double Norway's annual funding from NOK 7 billion in 2020 to NOK 14 billion by 2026 at the latest, says the Minister of Climate and Environment Espen Barth Eide.
Norway's climate financing includes public funding from the climate development aid and investment budget, private capital mobilization through Norfund and the new Climate Investment Fund.
In 2020, our climate financing consisted of 6,6 billion NOK from public funds and 400 million NOK from privately mobilized funds. For the first time, Norway will have a quantified target for our total climate financing.
- If we are to achieve the goal of financing from rich countries to developing countries, we must both increase public budgets and raise even better private funds. There is a particular need for more resources to adapt to climate change and we must at least triple the resources for this, says Development Aid Minister Anne Beathe Tvinnereim.
The goal is $ 100 billion in climate finance
The agreement at the 2015 Paris climate summit required industrialized countries to contribute a total of USD 2020 billion (USD) by 100 to finance climate action for developing countries and maintain this level in the future.
A key part of this goal is mobilization from sources other than public budgets
Contribution to the rapid transition of developing countries to renewable energy will also be crucial. With the new climate investment fund, we are getting a new tool that will mobilize renewable energy investments much faster than otherwise - and thus also phase out coal. The ambition is to mobilize private investors.
Source: regjeringen.no
