The Norwegian Agency for Development Cooperation (NORAD) has opened a call for proposals under Norway's new state guarantee scheme, aimed at accelerating renewable energy projects in developing countries. The initiative has a financial framework of NOK 5 billion (€0.42 billion), with NOK 1.75 billion (€1.4 billion) now available to companies and guarantee institutions through the call.
Approximately 65% of the scheme's funds are allocated for guarantees issued in partnership with multilateral development banks, including the World Bank, African Development Bank, and Asian Development Bank. The remaining 35% is accessible via the open call.
Norwegian Prime Minister Jonas Gahr Støre emphasized the scheme's importance, stating:
“Roughly 700 million people lack access to electricity today. We must work to provide as many of them as possible with electricity, and this must come from renewable sources rather than fossil fuels. The guarantee scheme will be an important tool for securing greater access to clean energy in developing countries. This is vital to enable these countries to continue to develop and at the same time reduce the impacts of climate change.”
Anne Beathe Tvinnereim, Norway's Minister of International Development, highlighted the innovative nature of the program:
“The guarantee scheme represents a new way of thinking about development assistance. Norway has an AAA credit rating, which is the highest possible rating. We use this to guarantee funding for renewable energy projects to encourage more private companies to invest in sometimes challenging markets. In addition to promoting the green transition in developing countries and reducing greenhouse gas emissions, this helps to create jobs, which we know is a key to poverty reduction.”
Emerging markets and developing nations often face barriers to attracting investment in renewable energy due to underdeveloped financial markets and high poverty levels. Norway's guarantee scheme is designed to leverage its strong credit rating to mitigate these challenges, fostering both sustainable energy access and economic development.
