- Norway will invest $1.16 billion in clean energy projects in developing countries.
- The project will reduce dependence on fossil fuels.
- Ric nations have pledged to provide $100b annually.
Norway’s government says that it will allocate 10 billion crowns ($1.16 billion) over the next five years towards renewable energy investments in developing countries to cut greenhouse gas emissions. The climate fund will be administered by the Norwegian Investment Fund for developing countries, Norfund and will support projects that reduce dependence on fossil fuels, especially coal.
The government stated that the fund could grow to 100 billion crowns in investments via partnerships with private capital. Prime Minister Erna Solberg said in a statement: “to succeed in reducing greenhouse gas emissions, particularly in Asia, we need to mobilise more commercial capital. Therefore, I urge investors to work with the climate investment fund when it is up and running.”
Norway already spends about 6.3 billion crowns annually on climate financing as part of its development aid budget. In addition, developed countries have pledged to provide $100 billion annually to help developing nations combat the effects of climate change.