Policy Updates

On May 7, 2024, Norad presented the statistics on Norwegian development assistance in 2023, showing that Norwegian ODA reached a record high of NOK58.6 billion (US$5.4 billion), an increase of 18% or NOK9 billion (US$832 million) compared to 2022.

ODA increased in all regions, significantly affected by the one-time additional allocation of NOK5 billion (US$462 million) to LICs particularly affected by Russia's full-scale invasion of Ukraine.

By region, the largest increase in ODA was to Europe. In total, European countries received NOK9.1 billion (US$842 million) in funding. Of the total European allocation, the largest share of funding went to Ukraine and Moldova. The funding to Ukraine in 2023 stood at NOK7.9 billion (US$730 million).

Development assistance to the African continent increased by NOK2.5 billion (US$321 million), reaching a total of NOK10.2 billion (US$943 million). Africa remains the region receiving the most development assistance from Norway. The increase in funding to Africa is explained by long-term assistance to agriculture, fisheries, food security and emergency relief.

Development assistance to the Middle East increased by over NOK1 billion (US$92 million), reaching NOK3.8 billion (US$351 million) in 2023. The increase was almost exclusively in emergency assistance. Palestine was the second-largest recipient of Norwegian development assistance in 2023, receiving NOK1.2 billion (US$111 million). The majority of the funding was given as humanitarian assistance and emergency relief.

By partner, multilateral organizations were the largest partner group for Norwegian ODA, followed by CSOs and the public sector. Multilaterals received NOK31.7 billion (US$2.9 billion) in 2023, an increase of NOK6.3 billion (US$582 billion) from 2022. CSOs received NOK13.2 billion (US$1.2 billion) in 2023, compared to NOK10.3 billion (US$952 million) in 2022.

The World Bank Group was the largest partner with NOK7.4 billion (US$684 million) in 2023, of which slightly over one-fifth was core support. The WFP was the second-largest recipient with NOK2.4 billion (US$222 million), approximately half of which was earmarked for emergency relief. Overall, multilateral organizations were the dominant partner group for Norwegian health assistance, with over 80% being channeled through multilateral partners in 2023.

By sector, emergency relief and multisectoral support saw the largest growth from 2022 to 2023, while there was a decrease in refugee expenses and earmarked assistance for education.

ODA to agriculture, fisheries, and food security significantly increased from NOK3.9 billion (US$360 million) in 2022 to NOK6.4 billion (US$592 million) in 2023. Most of the increase of NOK2.5 billion (US$231 million) was funded by the one-time funding package for LICs particularly affected by Russia's war against Ukraine.

Total Norwegian ODA to health stood at NOK6.5 billion (US$601 million) in 2023, up from NOK6.3 billion (US$582 million) in 2022. This is significantly lower than in 2020 and 2021, when development assistance globally was influenced by the Covid-19 pandemic.

Between 2014 and 2023, health assistance slightly increased when measured in 2024 prices, from NOK4.7 billion (US$434 million) in 2014. The largest partners in health assistance in 2023 were Gavi at NOK1.5 billion (US$138 million), UNFPA at NOK1.1 billion (US$101 million) and the WHO at NOK687 million (US$63.5 million). Of the earmarked health ODA, totaling NOK3.5 billion (US$323 million) in 2023, 58% went to programs targeting LICs not geographically earmarked. Africa received the most of the geographically earmarked health support, with around NOK600 million (US$55.5 million).

In 2023, NOK1.7 billion (US$157 million) went to SRHR, down from NOK1.8 billion (US$166 million) in 2022. Multilateral organizations, an important partner group in Norwegian SRHR efforts, received 51% of the earmarked support in addition to the calculated core support, totaling 81% of SRHR support. UNFPA was the largest individual partner and received nearly half of total SRHR support.

On April 29, 2024, Norway was granted a board seat on the board of the Loss and Damage Fund.

The agreement to operationalize the Loss and Damage Fund, which will assist LICs particularly vulnerable to the effects of climate change, was passed during COP28 in 2023.

The board of the fund has now been decided and consists of 26 members. HICs countries have 12 members on the board, while LICs have 14. Apart from Norway, EU countries, the US, Japan, and the UK each have a full seat on the board.

The first board meeting is slated to take place between April 30 - May 2, 2024, in Abu Dhabi. In total, nearly US$700 million was pledged to start the fund during COP28. Norway has since pledged NOK270 million (US$25 million) to the fund.

Norwegian Minister of International Development Anne Beathe Tvinnereim noted that climate disasters are expected to increase in the years to come and will continue to affect vulnerable LICs. She noted that Norway welcomes a financing solution, like the Loss and Damage Fund, in which can ensure the needed support for these countries. Tvinnereim underlined that Norway will do its best to make sure the fund is as targeted and efficient as possible.

On April 24, 2024, the Norwegian government announced a new pledge of NOK430 million (US$39 million) in core funding to the WFP.

The Norwegian government noted that the WFP will be able to use the Norwegian support where it is needed the most.

According to Norwegian Minister of International Development Anne Beathe Tvinnereim, the WFP is one of the most important tools in the fight against hunger. By funding the WFP, Norway will be able to help reduce acute hunger and contribute to increased local food production.

On March 4, 2024, at a panel discussion hosted by Save the Children, prominent Norwegian development actors weighed in on the ongoing discussion surrounding suggestions from the government-appointed development expert group, led by Ole Jacob Sending.

The suggestions were originally presented by the group in 2023. The expert group recommended a twofold division of the objectives and allocations for development assistance and suggested separating funding to poverty reduction and public common goods.

Director General of Norad Bård Vegar Solhjell stated that he supports this division. He noted that in order to not threaten poverty reduction efforts, a distinction between the funding lines must be made.

Norwegian Minister of International Development Anne Beathe Tvinnereim did not support policy change. She advocated against creating more silos in development assistance funding, and argued that the fight against poverty and climate change must be seen in relation to one another.

Former Norwegian Minister of International Development Dag-Inge Ulstein, from the Christian Democratic Party, argued that climate funding be allocated outside the 1 % GNI/ODA goal. He noted that an increasingly large part of the budget is allocated towards public common goods as well as his belief that the budget be divided into two sections, without a percentage target for climate ODA.

The discussion led to a more general discussion about the potential use of the Norwegian Oil Fund for climate finance in LICs. There is a rule regulating how much oil funding the government can use in the state budget, set at approximately 3% annually. Some Norwegian parties have advocated for a similar rule on how much oil funding can be used for foreign affairs matters, including international climate finance.

The SV suggested that 0.25% of the Oil Fund should be allocated to international climate finance annually, equivalent to approximately NOK30-35 million (US$3.3 million). The Norwegian government has criticized the suggestion, saying that this type of allocation could potentially open up a discussion for allocating funding from the Oil Fund to other important efforts, both domestically and internationally.

On February 15 and 16, 2024, Tanzanian President Samia Suluhu Hassan visited Norway for an official state visit, where the countries entered three new agreements on climate-adapted food production, soil health and research.

Norway and Tanzania have had a close collaboration for decades, with climate and food security being key focus areas.

Norway and Tanzania signed a cooperation agreement on climate-adapted agriculture and food security. Norway's efforts will support Tanzania's ambitions to produce 10% more food by 2030. In addition, the NIBIO and the TARI entered into a new agreement on soil health. NIBIO and TARI are slated to work together on methods to use less artificial fertilizer. Soil health is an important focus area for increasing food production and enhancing food security for smallholder farmers.

Norwegian Minister of International Development Anne Beathe Tvinnereim underlined that a close collaboration around research has become increasingly important. She emphasized this as a founding reason for why the Sokoine University of Agriculture in Tanzania and the Norwegian University of Life Sciences have entered into a new agreement on research collaboration.

On February 12, 2024, Norwegian Church Aid launched a report titled The West against the rest, which contained several development suggestions to Norwegian political parties as the parties draw up their programs for the 2025-2029 parliamentary period.

Norwegian Church Aid argued that, compared to most countries, Norway has a unique financial leeway considering its notable additional income from oil and gas sales following the war in Ukraine. As such, Norway has an opportunity and a special responsibility to contribute to worldwide development.

Norwegian Church Aid presented a variety of program proposals with the expressed hope that the political parties will take them into consideration.

The suggestions included:

• Ensure that, as a general rule, investments in global common goods are financed outside the one percent. The investments should still be earmarked for development assistance for poverty reduction and emergency assistance;
• Step up climate financing in line with Norway's fair climate responsibility;
• Work on international regulations making it possible to collect illegal or illegitimate debts;
• Support a tax convention in the UN;
• Actively support free media, independent courts, and local civil society;
• Step up work against GBV in areas of crises and conflict;
• Invest a larger share of the Norwegian Oil Fund in low-income countries; and
• Enshrine further measures to ensure that Norwegian weapons are not used in violation of humanitarian law and human rights.

As a response to these suggestions, both the Labour Party and the Conservative Party underlined that Norway must continue to be an international bridge builder. The SV called for more political solidarity.

Norwegian Minister of Foreign Affairs Espen Barth Eide has promised that 1% GNI/ODA will still go to development assistance. The Conservative Party stated that, going forward, it would be imperative to discuss how Norway spends money allocated to international development, and the Norway must be more concerned about the results and effects of development assistance.

On February 2, 2024, it was announced that Norad joined the partnership launching the GGC launched on the London Stock Exchange, alongside the Nigeria Sovereign Investment Authority, USAID, the GCF, Prosper Africa and the FCDO's MOBILIST program.

The GGC will provide guarantees for institutional investors buying green bonds on the London Stock Exchange, as well as green bonds in the private credit market.

Norad has invested NOK52 million (US$5 million) in the GGC. By 2035, the GGC aims to mobilize US$5 billion in climate financing for partner countries. The launch comes as the IEA urges low- and middle- income countries to increase their investment in renewables by 700% to continue economic growth while limiting the effects of climate change.

On December 11, 2023, Norway announced a pledge of US$50 million to the Amazon Fund, the first pledge to the fund from Norway since 2018.

Between 2009 and 2018, Norway contributed NOK8.3 billion (US$761 million) to the fund. The new funding is the result of budget negotiations between the government and the SV, which controls important seats in Parliament.

Norwegian Prime Minister Jonas Gahr Støre called the impact of the fund important both for Brazil and the world, and credited Brazilian President Lula da Silva for his actions to re-launch the fund.

On December 4, 2023, during COP28, the US announced it would invest in a new public-private partnership to create a new privately-run climate guarantee company known as the Green Guarantee Company.

The Green Guarantee Company will be the first private company created to mobilize green bonds and loans in countries across Africa, Asia, and Latin America. The US, through USAID, the US State Department, and Prosper Africa, is joining the UK, the Green Climate Fund, Norfund, and the Nigerian Sovereign Investment Authority to contribute US$100 million to the initial balance sheet of the Green Guarantee Company.

Experts estimated that the initial contribution will allow the Green Guarantee Company to raise US$1 billion in new climate finance capital by 2024. The US contribution is US$10 million. The Green Guarantee Company is slated to use its finances to de-risk private capital towards climate solutions.

On December 4, 2023, Canada announced a pledge of CAD34 million (US$25 million) for the Special Climate Change Fund, hosted by the GEF.

The announcement was part of a joint statement released by Canada and the governments of Belgium, France, Germany, Norway, Spain, Sweden, and the UK during COP28. Canada’s pledge to the fund will support in accelerating climate change adaptation in SIDS and catalyzing technology transfer, innovation, and private sector engagement for adaptation.