4 Information on financial, technology development and transfer and capacity-building support provided and mobilized

4.1 National circumstances and institutional arrangements

Description of the systems and processes used to identify, track and report on support provided and mobilized through public interventions

The monitoring of Norwegian development finance targeting the objectives of the United Nations Framework Convention for Climate Change (UNFCCC) and the Paris Agreement is conducted by The Norwegian Agency for Development Cooperation (Norad).

Norway’s methodology for collecting and reporting information on financial support, including underlying assumptions and indicators, is grounded in OECD methodologies.

Reporting of climate finance provided and mobilised through public interventions is based on activities reported in the OECD’s Creditor Reporting System (CRS). This includes Official Development Finance (ODF), which consists of Official Development Assistance (ODA), Other Official Flows (OOF), and private finance mobilised by these official development interventions.

The identification, tracking, and reporting of relevant support are methodologically distinct for earmarked contributions and core contributions to multilateral organisations. The term ‘earmarked support’ includes all public support provided through bilateral and multilateral channels, excluding core contributions to multilateral organisations.

Tracking climate-specific earmarked contributions

• The OECD DAC’s Rio markers for climate change adaptation and mitigation are used to identify earmarked activities from CRS reporting that can be reported as climate finance to the UNFCCC. The Rio markers classify activities as having either ‘principal’ or ‘significant’ climate objectives. These markers are qualitative, indicating the extent to which climate objectives are targeted.
• Grant managers are responsible for accurately recording statistical information for their respective agreements, including the correct application of Rio markers. Norad conducts annual quality assurance to ensure that the use of the Rio markers aligns with the criteria in the OECD guidelines for CRS reporting.
• For tracking and reporting climate-specific earmarked contributions, a 40 per cent coefficient is applied to activities with a significant score. As a result, 100 per cent of contributions to activities with a principal objective are included, while 40 per cent of contributions to activities with a significant objective are counted. This aligns with the reporting practices of several other DAC members, who also use the 40 per cent coefficient for significant objectives. The purpose of applying this coefficient is to estimate a more climate-specific amount, although in practice, this simplified calculation may vary above or below 40 per cent for individual activities. In cross-cutting activities, where the objectives are both climate change mitigation and adaptation, at least one must be a primary objective for the contribution to count as 100 per cent; otherwise, it is counted as 40 per cent.

Tracking climate-specific core contributions to multilateral organisations

• For tracking and reporting climate-specific core contributions to multilateral organisations, estimated climate-specific shares from the OECD Secretariat are used. The OECD estimates, known as the imputed multilateral shares, represent the calculated climate-specific shares of donors’ core contributions to various multilateral organisations.
• For each organisation for which the OECD has calculated imputed multilateral shares and that receives core contributions from Norway, Norway’s climate-specific core support to that organisation has been calculated and reported as climate-specific core contributions.
• The OECD calculates the climate-specific share of multilateral outflows using the Rio markers or climate components reported by the organisation, and only ODA from the multilateral institution’s core resources (commitments) are included in the calculation. The OECD’s estimates cover most, but not all, multilateral organisations working on climate objectives. For organisations where OECD has not produced estimates, this is either because the climate share is too low or because the organisation’s data reporting to the OECD is too incomplete to make such calculations.
• Starting from the 2021 reporting year, the OECD Secretariat provides climate-specific multilateral core support disaggregated by type of support: adaptation, mitigation, and cross-cutting. An update in Norway’s reporting from 2021 onwards is therefore to disaggregate Norwegian climate-specific multilateral core support by type of support.

Tracking climate-specific mobilised private finance

• To track and report private climate finance mobilised through public interventions, we use the OECD’s standardised framework for measuring mobilised private capital. More generally, this framework is used to report all private capital mobilised by Norwegian development finance in Norway’s CRS reporting. The framework provides methodologies for measuring mobilised private capital through various financial mechanisms and for attributing the mobilised amounts to public actors while avoiding double-counting.
• Public earmarked interventions that mobilise private climate finance are identified using the Rio Markers for Climate Change Mitigation and Adaptation. A 40 per cent coefficient is applied to the mobilised private finance to estimate the climate-specific amount, following the same approach as for the corresponding public interventions.

To measure the amounts of public climate finance, the face value of all types of transfers is considered, from grants to private sector instruments, based on actual gross disbursements in the relevant year. Inflows, meaning repayments on loans, equity sales, and revenues from interest and dividends, are not reported as climate finance. Instead, these inflows are described narratively. The amounts for mobilised private climate finance are based on commitments, in contrast to public climate finance, due to the challenges in tracking disbursements of mobilised private finance.

Description of challenges and limitations

Norway does not have an established method for comprehensively tracking activities that promote technology transfer and capacity-building. The OECD CRS reporting system does not enable the systematic tracking of activities related to capacity building and technology development and transfer. The OECD has proposed a voluntary methodology to track such activities. However, when applied on the Norwegian statistics, there were certain challenges with the method. We aim to further assess these methodological challenges.

A challenge with the OECD’s imputed multilateral shares is that such shares are not generated for all climate-relevant multilateral organisations receiving core support from Norway. This is primarily due to insufficient reporting by these organisations to the OECD. As a result, this method does not capture the full extent of Norway’s core support for climate-related purposes.

Information on experience and good practices in relation to public policy and regulatory frameworks to incentivise further private climate financing and investment

Many of the efforts undertaken by Norway in the field of climate change are directed at undertaking reforms, phasing out fossil fuel subsidies harmful to the environment, strengthening technical and institutional capacity to support private sector and commercial investments, often in cooperation with other donors or through programmes or funds in multilateral development institutions. For example, the Renewable Energy Catalyst Trust Fund (RECTF) is primarily focused on mobilising foreign direct investment into the renewable energy sector. Through the collaboration with the Multilateral Investment Guarantee Agency (MIGA) (political risk insurance), Norway aims to support renewable energy projects, especially in the poorest countries and Sub-Saharan Africa, by mitigating risks associated with investments. It is a key priority for Norway to support the private sector in developing renewable energy projects in Africa through various means, including by providing grants to companies for early-stage project development, guarantee premiums, and first loss guarantee subsidies. Norway’s Climate Investment Fund (CIF) became operational in 2022. The fund, which is managed by Norfund, is an important tool in accelerating the global energy transition by investing in renewable energy in developing countries with large emissions from coal and other fossil power production. Renewable energy is also a priority area for investment in Norfund’s development portfolio.

Efforts taken to enhance comparability and accuracy of information

Norway carries out quality assurance checks on the information to be reported using the OECD DAC reporting system, including how significant differentials in the reported information from one year to another are accounted for.

The statistics for each agreement, including the Rio markers for climate change adaptation and mitigation, are filled out by the responsible officer that manages the agreement. The Section for Statistics and Analysis in Norad then performs several quality assurance checks on the statistics before it is finalised. First, each newly signed agreement is reviewed based on the quality of the title, description and statistics. Second, the entire statistics database for the previous year is reviewed in the period January-April. As part of this review, all new agreements marked with one of the Rio markers, as well as agreements that are not marked with the Rio markers but contain relevant search words in the title/description, are sent to the Section for Nature and Climate in Norad for their expert assessment. Changes to the statistical coding can be made as part of both of these checks, and the responsible officer is alerted about the change and has the possibility to object. Last, time series for the Rio markers are reviewed to ensure that significant changes from one year to another are accounted for.

Norway is a member of the OECD DAC. In recent years, the DAC has done substantial work on ensuring consistent and comparable use of the Rio markers, and Norway has played an active part in this work. For one, the DAC has reviewed member countries’ use of the Rio markers and updated the definitions of the markers to be in line with the UNFCCC and the Paris Agreement. Moreover, the indicative tables for climate change adaptation and climate change mitigation were recently updated after comprehensive work in both WP-STAT and ENVIRONET to further accurate and comparable use of the markers ( Rio_markers_indicative_tables_2024.xlsx ). The DAC has also increased the transparency of member countries’ climate reporting through conducting and publishing periodic surveys, on a voluntary basis, on the coefficients applied to Rio marker data when reporting to the UN Conventions.

Information on national circumstances and institutional arrangements for the provision of technology development and transfer and capacity-building support

Information on the most relevant activities has been provided in textual format. The OECD DAC WP-STAT has developed a methodology for tracking activities relevant to capacity-building and technology transfer, which was completed in 2024. However, this methodology does not fully capture the nature of Norwegian support. This is therefore an area Norway will need to examine in greater detail for future reporting.

4.2 Underlying assumptions, definitions and methodologies

The chosen reporting year is 2021 calendar year and 2022 fiscal year. The conversion between domestic currency and United States dollars is 8.5915 in 2021 and 9.6129 for 2022.

Status

Public climate finance is reported in disbursed amounts, while private finance mobilised through public interventions is reported in committed amounts.

Channel

The category ‘Bi_Multi’ in the OECD CRS reporting framework is used to report the channels of public climate financing: Channel ‘bilateral’ includes core contributions to NGOs and PPPs and triangular co-operation. Channel ‘multi-bilateral’ includes earmarked support to multilaterals. Channel ‘multilateral’ includes core support to multilateral organisations. Channel ‘regional’ includes global or regional earmarked support. As described in section 4.1, different methods are used to track and report earmarked climate financing and climate-specific core support to multilateral organisations.

Funding source

The category ‘Type of flow’ in the OECD CRS reporting framework is used to report the funding source. Public climate finance is classified as Official Development Finance (ODF), which consists of Official Development Assistance (ODA) and Other Official Flows (OOF). Private climate finance mobilised through Official Development Finance (ODF) is reported in the CRS under the column ‘Amounts Mobilised from the Private Sector’ for the relevant official development intervention.

Financial instrument

The category ‘Type of Finance’ in the OECD CRS reporting framework is used to report the type of financial instrument. The categories include grants, debt instruments, equities, mezzanine finance instruments, guarantees, and others. In cases where there is no direct mapping from Type of Finance in the CRS framework to Financial Instrument, the Type of Finance from the CRS is used.

Information on instruments and funding sources reported

The ‘Type_of_Flow’ category in the OECD CRS reporting framework is used to specify the funding source of the climate finance provided, such as Official Development Assistance (ODA) or Other Official Flows (OOF). The ‘Type of Finance’ category, meanwhile, reports the specific financial instrument used (e.g., grants, loans).

Norway’s reporting of climate finance provided and mobilised is based on activities listed in the OECD’s Creditor Reporting System (CRS), which includes Official Development Finance (ODF). This includes both ODA and OOF. OOF activities cover private sector instruments (PSI) from Norfund’s Development Investment Mandate and the Climate Investment Fund managed by Norfund. Norway applies the institutional approach for ODA-reporting of PSI, whereby capitalisations of Norfund and the Climate Investment Fund are classified as ODA, whereas their outflows are reported as OOF. For the reporting of climate finance provided, climate-specific PSI outflows (OOF) from Norfund as well as the Climate Investment Fund are included, while the annual ODA-reported capitalisations of these funds are excluded to avoid double counting.

In line with the PSI institutional approach, the ODA coefficients for Norfund and the Climate Investment Fund are assessed based on types of additionality specified by the OECD. Both funds qualify as 100 percent ODA for both the reported years.

Amounts reported represent the face value of all types of transfers, from grants to private sector instruments. Flows are reported at their full disbursed amount, rather than as grant equivalents.

The type of support

The OECD DAC’s Rio markers for climate change adaptation and mitigation are used to report on the type of support for earmarked climate financing and mobilised private climate finance. The Rio markers classify activities as having either ‘principal’ or ‘significant’ climate objectives. Cross-cutting refers to activities that address both adaptation and mitigation as either principal or significant objectives. The estimated climate-specific core support is also divided into adaptation, mitigation, and cross-cutting categories. The disaggregation of these estimates into adaptation, mitigation, and cross-cutting categories is new from the 2021 reporting year and was calculated by the OECD Secretariat. In certain cases, the climate-specific multilateral core support is not allocated between adaptation, cross-cutting, and mitigation, and we then report it as Climate Unspecified.

Sector

Reporting by sector is based on the OECD’s sector classification, Purpose codes, in CRS reporting. The OECD’s purpose codes are mapped to sectors relevant to BTR reporting. The mapping has been conducted by the OECD Secretariat.

Subsector

Reporting by sector is based on the OECD’s sector classification, Purpose codes, in CRS reporting. The OECD’s purpose codes are mapped to sectors relevant to BTR reporting. The mapping has been conducted by the OECD Secretariat.

Whether it supported capacity-building and/or technology development and transfer objectives

As stated earlier in the text, in the registration and reporting to the OECD CRS, there is no variable that specifically and comprehensively identifies whether an activity contributes to capacity building and/or technology development and transfer. Since Norway does not have an established method for comprehensively tracking climate-relevant activities that promote technology transfer and capacity-building, information on the most relevant activities has been provided in textual format.

The support as being climate-specific

The reported amounts are estimated climate-specific finance. To estimate climate-specific climate finance, two different methods are used (as described in section 4.1): 1) one for public earmarked climate finance and mobilised private climate finance, calculating a climate-specific share based on the qualitative Rio markers, and 2) another method for public core support to multilateral organisations using imputed multilateral shares.

To estimate the climate-specific share of earmarked contributions marked with the Rio markers for climate change adaptation and mitigation, we apply a 40 per cent coefficient to contributions for activities with only a significant objective. The same 40 per cent coefficient applies to cross-cutting activities with only significant adaptation and mitigation objectives. For activities with either mitigation or adaptation as a principal objective, a 100 per cent coefficient is applied. The same approach applies for estimating the climate-specific private climate finance mobilised by public interventions.

The OECD Secretariat’s estimates of imputed multilateral ODA are used to calculate climate-specific core contributions to multilateral organisations. The OECD estimates, known as the imputed multilateral shares, represent the calculated climate-specific shares of donors’ core contributions to various multilateral organisations. For each organisation with calculated imputed multilateral shares that receives core contributions from Norway, Norway’s climate-specific core support is calculated and reported as climate-specific multilateral core contributions.

Information on the efforts taken to avoid double counting

Norway’s reporting on climate finance provided and mobilised is based on activities reported to the OECD CRS in accordance with their reporting guidelines. The reporting guidance is designed to prevent double-counting from bilateral and multilateral donors.

For Norway’s reporting on attributed private climate finance mobilised by Norwegian public interventions, OECD’s standardised framework for measuring private mobilisation is used. A core principle in the design of the OECD framework is to avoid double-counting when attributing the mobilised amount back to the official donors (both bilateral and multilateral). The OECD Secretariat has developed reporting requirements and quality assurance measures to prevent double-counting. The OECD methodology requires that only institutions making direct public investments report mobilised private finance, ensuring clear attribution of the mobilised private finance to those actively involved while avoiding double counting.

Norway does not report resources used under Article 6 of the Paris Agreement as climate finance provided and mobilised.

Norway’s reporting on the recipient country of Norwegian climate finance is based on the Recipient category from the OECD CRS reporting framework. In cases where there is more than one recipient country within the same geographical region, multiple recipient countries are not listed. Instead, the activity is reported as regional (e.g., Sub-Saharan Africa, regional). If the activity involves recipient countries across different geographical regions, it is reported as Global unspecified, and core support to multilateral organisations is reported as Multilateral.

The definition of public and private finance, in particular where entities or funds are mixed

OECD’s definition of the distinction between official and private flows is used to differentiate between the reporting of public climate finance and mobilised private climate finance. Norwegian public climate finance activities are reported as Official Development Finance (ODA or OOF) and, by definition, consist of contributions provided by Norwegian government agencies. In contrast, the private finance mobilised by Norwegian public interventions refers to private funds where more than 50 per cent of the ownership or control is held by private entities.

How private finance was assessed as mobilised through public interventions

For Norway’s reporting on attributed private climate finance mobilised by Norwegian public interventions, OECD’s standardised framework for measuring private mobilisation is used. The main principle of the OECD methodology for measuring mobilisation is a demonstrated causal link between the official and private investment. The OECD’s methodology establishes a causal link by using specific criteria to attribute private finance directly to public financial mechanisms, such as guarantees, syndicated loans, or equity stakes. This approach ensures that only private investment directly attributable to the public intervention is counted, avoiding overestimations. OECD guidelines require instrument-specific documentation, demonstrating that the public intervention led to the private finance commitment, and excludes more indirect mobilisation that do not meet this criterion.

In the OECD methodology, the point of measurement for private finance mobilised by public interventions is the point of commitment by the private sector, where capital is allocated directly due to the influence of the public intervention. This approach is generally consistent across various financial instruments, although some adjustments may be made based on the specific mechanism.

In the OECD methodology, boundaries are crucial to ensure that only private finance directly and causally linked to public intervention is classified as ‘mobilised’. These boundaries include the following key aspects: instrument-specific attribution, causal link requirement, exclusion of indirect mobilisation, avoidance of double counting. These boundaries ensure a robust and transparent measurement of private finance mobilised by public interventions, accurately reflecting the scale and impact of these contributions.

How Norway seeks to ensure that support provided and mobilised through public interventions effectively addresses the needs and priorities of developing country

All Norwegian ODA, including climate finance provided to support developing countries, is assessed in terms of responding to needs and priorities of partner countries. According to the guidance for the preparation and approval of Norwegian support, any project or programme should be assessed in terms of its relevance to the priorities and plans of the recipient country and/or partner, or its relevance to the target group. This is aimed at ensuring that resources effectively address the needs of Parties. Furthermore, in assessing risks associated with projects, the risk that the project itself could have unintended negative consequences to climate and the environment is mandatory to document. Climate and the environment are cross-cutting issues in all Norwegian development assistance and must always be taken into consideration when assessing projects.

How Norway seeks to ensure that support provided and mobilised through public interventions is in line with the long-term goals of the Paris Agreement

The current government has a priority to amalgamate climate and development policy and has been working toward achieving this since elected in 2021. In 2022, Norad was mandated in its main allocation letter from the Ministry of Foreign Affairs to ensure that all climate relevant support is managed in line with the national climate plans of the recipient countries, the goals of the Paris Agreement and long-term low greenhouse gas emission development strategies.

An indication of what new and additional financial resources have been provided, and how it has been determined that such resources are new and additional

The primary goal of Norwegian development cooperation is to combat poverty, save lives, and reduce suffering, in line with humanitarian principles. Recognising the strong ties between climate change and development, Norway emphasises the connections among the Paris Agreement, the Sustainable Development Goals, and the Sendai Framework for Disaster Risk Reduction.

While there is no internationally agreed-upon definition of «new and additional» resources for climate finance, several countries, including Norway, consider climate finance additional when it exceeds the 0.7 per cent GNI target for development aid. Norway’s Official Development Assistance (ODA) has consistently surpassed this target for years. The volume of the Norwegian ODA budget has steadily increased as the Norwegian economy has been growing.

In addition to public climate finance (which originates from ODA funding and returns on investments), Norwegian DFIs’ mobilise private finance through their climate specific investments. The amount mobilised varies, as can be seen in the tables below.

Aligned with the 2030 Agenda, Norway integrates social, economic, and environmental sustainability into its development efforts, recognising that well-planned actions can yield local and global benefits, including climate resilience. Although climate concerns are integrated into development assistance, this support is not consistently separately accounted for, making it challenging to isolate climate adaptation contributions within development aid.

How the information provided reflects a progression from previous levels in the provision and mobilisation of finance under the Paris Agreement

Chapter 4.3 presents key figures on Norwegian climate finance provided and mobilised in 2021 and 2022, as well as the progression from 2020.

Information on reporting on multilateral finance

The multilateral finance reported are estimated climate-specific inflow contributions to a selection of multilateral organisations, using the OECD imputed multilateral shares methodology.

Climate-specific core contributions to multilateral organisations are reported using the OECD imputed multilateral shares methodology, where the OECD secretariat has published annual imputed climate-specific shares for a selection of multilateral organisations.

Only climate-specific estimates from the OECD Secretariat are used to report multilateral climate finance. Core contributions to organisations without an imputed climate share from the OECD Secretariat are excluded from climate finance reporting. For example, core contributions to UNDP are not reported as climate finance, as no imputed climate share is published by the OECD Secretariat.

The OECD imputed multilateral shares methodology is applied to attribute the climate-specific share of multilateral organisations’ outflows to the core contributions provided by the reporting Party.

A description of the underlying assumptions, definitions and methodologies used to provide information on technology development and transfer and capacity-building support

The basis for reporting on technology development and capacity building relies on the assumptions, definitions, and methodologies for identifying and reporting climate finance activities, as described above. As noted in section 4.1, Norway has not established a comprehensive method for tracking the climate-related activities that promote technology transfer and capacity building. Instead, information on the most relevant activities has been included in textual format.

4.3 Information on financial support provided and mobilized

This section presents a selection of summary tables on Norwegian climate finance provided and mobilised in 2021 and 2022. The data is fully reported in CTF Tables III.1–3. 60

At COP26 in 2021, Norway committed to doubling its total annual climate finance to NOK 14 billion by 2026, from NOK 7 billion in 2020, and to at least triple its adaptation finance as part of this effort.

Key figures

Table 4.1 and Table 4.2 provide an overview of total climate finance provided and mobilised in 2021 and 2022 61 , in NOK million and USD million, respectively, with 2020 figures included for comparison.

Total climate finance provided and mobilised increased from NOK 6,978 million in 2020 to NOK 15,619 million in 2022, more than doubling over this period. Earmarked support, excluding contributions from Norfund and the Climate Investment Fund (CIF), rose from NOK 4,027 million in 2020 to NOK 5,251 million in 2022. Finance from Norfund and CIF also increased substantially, rising from NOK 581 million in 2020 to NOK 1,903 million in 2022. Mobilised private climate finance saw significant growth, expanding from NOK 313 million in 2020 to NOK 6,302 million in 2022. This was mainly due to growth as a result of investments made by CIF.

Tabell 4.1 Total provided and mobilised climate finance, by source (gross disbursements, NOK million)

The trends in climate finance observed in NOK millions are similarly reflected in USD millions, as seen in Table 4.2. Total provided and mobilised climate finance in USD increased from 741 million in 2020 to 1,625 million in 2022. Earmarked support (excluding Norfund/CIF) increased from 428 million in 2020 to 546 million in 2022, while contributions from Norfund and CIF increased from 62 million to 198 million over the same period. Mobilised private climate finance also saw considerable growth, increasing from 33 million in 2020 to 656 million in 2022.

Tabell 4.2 Total provided and mobilised climate finance, by type of assistance (gross disbursements, USD million)

The majority of Norwegian public climate financing is provided as grants. Financing listed in Tables 4.1 and 4.2 as ‘Earmarked support (excl. Norfund/CIF’ and ‘Multilateral core support (imputed)’ are exclusively grants. Norfund/CIF primarily manages non-grants, which are private sector instruments, consisting mainly of equities and loans.

Type of support

Tables 4.3 and 4.4 (in NOK million and USD million) present an overview of the types of climate finance provided and mobilised in 2021 and 2022, categorised as adaptation, cross-cutting, and mitigation. Cross-cutting activities target both adaptation and mitigation, while the adaptation and mitigation categories are therefore labelled as ‘Adaptation only’ and ‘Mitigation only’.

A large share of the support is directed towards climate change mitigation, with the proportion being particularly high in 2022 due to the significant amount of mobilised private finance. A substantial portion of the adaptation financing is delivered through core contributions to multilateral organisations. In contrast to Figure 1, 2020 is not included as a basis for comparison. This is because the estimates on multilateral core support broken down by type of support has only been available from 2021 onward.

Tabell 4.3 Total provided and mobilised climate finance, by type of support and type of assistance (gross disbursements, NOK million)

Tabell 4.4 Total provided and mobilised climate finance, by type of support and type of assistance (gross disbursements, USD million)

Progress towards the climate adaptation commitment

To measure contributions to the commitment to at least triple adaption finance from 2020 levels by 2026, a specific method is used to track provided and mobilised finance for climate adaptation, including cross-cutting activities. Adaptation-specific core support to multilateral organisations is not included, as there was no adaptation-specific imputed multilateral core support in the baseline year of 2020. Adaptation-specific core support to multilateral organisations comes in addition to the finance provided towards the target to at least triple adaptation finance. Public earmarked support for climate adaptation increased from NOK 1,062 million in 2020 to NOK 1,753 million in 2022, and from USD 113 million to USD 182 million, indicating substantial progress toward the commitment. In the years 2020–2022, there was no mobilised private capital activities for climate adaptation.

Allocation by sectors and regions

Norwegian climate finance is mainly concentrated in three areas: reducing emissions from deforestation and forest degradation, renewable energy, and climate adaptation, including risk reduction.

Table 4.5 and 4.6 present the sectoral and regional allocation of public climate finance provided by type of support for 2021–2022. The scope of public contributions is limited to earmarked support, excluding core contributions to multilateral organisations, as such contributions are not allocated by sector or region.

Adaptation-focused finance is predominantly allocated to agriculture and disaster risk reduction, while mitigation-focused finance primarily targets energy and general environment protection (mainly reducing tropical deforestation). For cross-cutting finance, targeting both climate adaptation and mitigation, the largest allocations are to general environment protection and agriculture.

Tabell 4.5 Sector allocation of public climate finance provided by type of support in 2021–2022

¹ OECD DAC sectors that do not directly align with BTR sectors.

Africa is the largest recipient region, receiving more than half of adaptation-focused financing. Together with Africa, Asia and the Americas are key recipients of mitigation-focused financing. For cross-cutting support, Africa and the Americas remain the largest beneficiaries. It is important to note that a significant portion of the financing is not geographically specified in the statistics.

Tabell 4.6 Regional allocation of public climate finance provided by type of support in 2021–2022

Governance of public climate finance

Norwegian public climate finance is managed by various entities within the development aid administration. In 2022, 48 per cent was managed by the Norwegian Agency for Development Cooperation (Norad), 23 per cent by the Ministry of Foreign Affairs, 20 per cent by Norfund, including the Climate Investment Fund, and 8 per cent by the Ministry of Climate and Environment. Private finance mobilised from the private sector is generated through the interventions of Norfund and the Climate Investment Fund (CIF).

Norad and the Ministry of Foreign Affairs (MFA) manage core contributions to multilateral organisations, including those dedicated specifically to combating climate change, such as the Green Climate Fund, as well as other organisations that work partly on climate-related initiatives. Additionally, they provide earmarked support in areas like reducing deforestation and forest degradation, renewable energy, oceans, food security, and climate adaptation. Norfund, the Norwegian Investment Fund for developing countries, aims to create jobs, improve lives, and support the transition to net zero. In 2022, the Climate Investment Fund, managed by Norfund, became operational, with a mission to accelerate the global energy transition by investing in renewable energy in developing countries with significant emissions from coal and other fossil fuel-based power production. The Ministry of Climate and Environment oversees Norway’s International Climate and Forest Initiative (NICFI).

4.4 Information on support for technology development and transfer provided

In accordance with Article 10 of the Paris Agreement, Norway works to fully realising technology development and transfer in order to improve resilience to climate change and to reduce greenhouse gas emissions. Our work is to implement 10.4 and 10.5. Our work to accelerate, encouraging and enabling innovation has the dual purpose of both developing and implementing innovative technologies domestically, but also to transfer technologies including through sharing lessons learned. We share experiences through multilateral fora and bilaterally. See also chapter 2.5 for description on national efforts to develop climate technologies.

An example is the Norwegian efforts to develop chains for commercial scale carbon capture and storage solutions, see chapter 2.5.4. We share experiences and lessons learned through The Mission Innovation, Clean Energy Ministerial, Carbon Management Challenge to name a few. All these have participation from developing countries. Through the Clean Energy Ministerial CCUS Initiative we also fund participation for representatives from developing countries participation in workshops, seminars and conferences relevant for CCS. We also arrange visits to the Norwegian CCS facilities, lastly in November 2024 a delegation from UNIDOs matchmaking platform (under the Climate Club).

Norway has also prioritised working in the UNFCCC Technology Mechanism and has a member of the Technology Executive Committee.

The transfer of technology and expertise to promote the development, availability, and efficiency of energy is a key component of Official Development Assistance (ODA) and generates significant environmental co-benefits that align with the goals of the Paris Agreement. In addition, Norway supports a wide range of technology transfer initiatives. As described earlier in the report, there is not a precise method for tracking such activities. Hence, it is difficult to identify all the relevant activities supporting technology development and transfer.

Below is an overview of particularly relevant initiatives to support technology development and transfer, see CTF table III.4 for further details.

• Green Voyage 2050 Programme : This programme supports developing countries in reducing emissions from the shipping industry through technology cooperation and piloting new technologies.
• Systematic Observing Financing Facility (SOFF): Norway supports SOFF, which addresses the gap in weather and climate observations in Least Developed Countries (LDCs) and Small Island Developing States (SIDS). SOFF funds investments in weather observation stations to comply with the Global Basic Observing Network (GBON) standard, improving early warning systems.
• Global Environment Facility: Norway contributes to the GEF, which has established a Technology Transfer Program. This programme helps developing countries adopt environmentally sound technologies. This includes:
• Technology Needs Assessments (TNAs) to help countries identify technology priorities.
• Pilot projects aimed at accelerating the deployment of innovative technologies.
• Adaptation Fund : Norway contributes to the Innovation Facility, that provides grants to vulnerable countries to accelerate innovative adaptation practices and technologies on the ground.
• Central African Forest Initiative : In addition to capacity-building efforts, Norway’s contributions to CAFI also support technology transfer. For instance:
• In the Democratic Republic of Congo, CAFI funds the development of the National Forest Monitoring System, while in the Republic of Congo, CAFI facilitates the use of radar imagery for forest monitoring.
• In Lebanon, rehabilitation in collaboration with FAO of the main canal in Akkar in the north of the country has led to a doubling of the water supply and a fairer distribution of water resources. In 2022, the support contributed to continued cleaning of the canal system, and to monitoring of water quality, better access to clean water, and less waste reaching the sea. Also, the support contributed to reduced use of polluting chemicals in agriculture. The project contributed to over 100 farmers in the Bekaa Valley using 50 per cent less fertilizer and pesticides without this leading to lower yields and food security increased.
• In Mali, through Norwegian support – the project partners International Institute of Tropical Agriculture (IITA), Institute d’Economie Rurale (IER) and Care contributed to the development of new climate-robust and efficient agricultural technology and seed varieties. Through this, small-scale farmers in Mali and Niger have gained better conditions for securing food supply and income for the family.

4.5 Information on capacity-building support provided

Norway has several sectoral strategies and programmes that include a significant proportion of capacity building support in climate relevant fields. These are described in further detail below. Norway also supports several initiatives that provide capacity building support to developing countries based on local demand. Below are the most important initiatives in this regard, see CTF table III.5 for further details.

1. Support to the NDC Partnership : Through the NDC Partnership, Norway provides technical and financial assistance to help developing countries achieve their climate goals, focusing on the integration of climate adaptation and mitigation strategies.
2. Support to Global Environment Facility : Norway indirectly supports capacity building through its contributions to the GEF, specifically the Capacity-Building Initiative for Transparency (CBIT), which helps countries improve their systems for tracking greenhouse gas emissions and climate actions.
3. The Green Climate Fund : The Green Climate Fund (GCF) has the world’s largest capacity building programme and through our support to the GCF, Norway indirectly contributes to programmes that focus on building institutional and technical capacity in developing countries, in particular in least developed countries. Through GCF support has been provided to a programme strengthening the resilience of Tanzania’s agriculture sector by facilitating access to agriculture climate adaptation technologies and building institutional capacity to manage climate variability.

Sectoral Strategies:

Norway has several sectoral strategies and programmes. Below is an overview of particularly relevant activities for supporting capacity building.

Norway has established a Knowledge Bank , with the purpose of strengthening the competencies and capabilities in public institutions in partner countries through technical cooperation. Several Knowledge Bank programmes are climate relevant, for example Fish for Development, Oceans for Development, Agriculture for Development and Energy for Development .

Oceans for Development and Fish for Development were established by Norway with the aim to support developing countries in creating sustainable governance of oceans and fisheries resources. These include collaboration between Norwegian institutions and developing countries on fisheries and ocean management, which is critical for climate change mitigation and adaptation. The primary focus is on capacity development of public sector institutions. For more detailed information on involvement or stakeholders and how it promotes the sharing of lessons learned and best practices, please see the following policy documents: Oceans for Development 62 and Fish for Development 63 .

Both programmes integrate anti-corruption, human rights, gender equality and women’s rights, climate change and the environment as cross-cutting issues in all projects. Both programmes include several activities to support climate change adaptation and/or mitigation.

Examples of support under these programmes include:

• In 2022, Indonesia and Norway signed an agreement outlining the overall framework for long-term bilateral cooperation on ocean-related matters running to 2028. One component of the collaboration provides technical support to the Government of Indonesia for the development of a robust and high-integrity national blue carbon market. Outcomes of this component include increased and verifiable carbon sequestration in coastal blue carbon habitats and measurable financial and meaningful benefits for coastal communities from blue carbon projects.
• In Colombia, Conservation International works to support decision-makers’ knowledge and awareness about the importance of improving the resilience and adaptive capacity of local communities against negative impacts of climate change and support integrated mangrove management and mangrove restauration programs.

«Climate change, hunger and vulnerability» is Norway’s strategy for climate change adaptation, disaster risk reduction and the fight against hunger, laying the foundation for Norway’s efforts to assist vulnerable societies in adapting to climate change. The strategy identifies five priority focus areas: early warning systems and climate services, nature-based solutions, climate resilient food production, infrastructure and innovative development financing mechanisms. It also highlights tools for enhancing climate change adaptation.

The strategy is rooted in the fact that the fundamental aim of climate change adaptation is for countries and societies to develop adaptation solutions and implement action to prevent and reduce vulnerability to the adverse effects of climate change that are already happening and to increase resilience to anticipated future impact. Additionally, to benefit from opportunities associated with climate change. A key focus is to promote the incorporation of climate change adaptation measures in policies, strategies and plans in line with national priorities in developing countries.

The development and improvement of data, statistics, indicators and analysis, in collaboration with relevant partners is a focus of the strategy. The government sets a specific target in the strategy to promote the development and implementation of national climate change adaptation plans and strengthen the knowledge base for action.

Examples of projects that support this strategy include:

In 2022, the support of the Sahara Forest Project in Jordan, which aims to provide water and renewable energy in hot, dry areas, helped 73 Jordanian and Syrian students receive training in sustainable agriculture, and contributed to job creation for more women in the agricultural sector. Also, the project contributed to the supply of vegetables to local markets through the use of solar energy and desalinated water. Through advocacy work, the Sahara Forest Project has contributed to attention and renewed the spotlight on climate challenges in the Middle East and sustainable agriculture, including during the Sharm el-Sheikh Climate Change Conference in 2022 in Egypt (COP27).

Support to Disaster Risk Reduction: Norway supports the United Nations Office for Disaster Risk Reduction (UNDRR) and the Global Facility for Disaster Reduction and Recovery (GFDRR). These programmes build capacity in developing countries to integrate disaster risk management into governance systems, helping countries achieve the targets of the Sendai Framework for disaster risk reduction by 2030.

Support to Meteorological Institutes: Norway has contributed to strengthening meteorological services in Bangladesh, Vietnam, Ethiopia, Malawi, and Mozambique through an agreement with the Norwegian Meteorological Institute. This support includes training, workshops, and annual capacity-building initiatives in Oslo, focusing on technological transfer and weather prediction improvement.

«Combining forces against hunger – a policy to improve food self-sufficiency» is Norway’s strategy for promoting food security in development policy. The strategy was launched toward the end of 2022 – and includes relevant policy provisions for capacity building. The strategy has a clearly stated objective to support «national plans and strategies for sustainable development, food security and development of agriculture, fisheries and aquaculture, including UN country frameworks, pan-African strategies such as the 2014 Malabo Declaration on Accelerated Agricultural Growth, and national food security or food system strategies and action plans.»

The strategy also includes the launch of the Agriculture for Development programme , which strengthens local expertise in partner countries, focusing on food security and sustainable agriculture.

Food Security and Agriculture for Development Programme : The Agriculture for Development (AfD) programme strengthens local expertise in partner countries, focusing on food security and sustainable agriculture. Climate resilience is also integrated into the food security portfolio. Key projects include:

• The Systems of Rice Intensification (SRI) project in Tanzania, which reduced methane emissions by improving rice field management.
• The One Health project in Malawi, which strengthens veterinary services to control zoonotic diseases in the milk value chain.
• Introduction of climate smart agriculture technology and innovation in Sahel and Mali that improves rural livelihood.
• Increased climate resilient food production and productivity by small-scale food producers in Tanzania and Mozambique.
• In Ethiopia, the Norwegian commitment to climate- and forest initiatives was continued with a strengthened focus on increased food security. Norwegian-supported activities in 2022 engaged local communities in forest conservation and tree planting, as well as introducing sustainable ways of living from the forest. Nearly 400,000 households have received alternative sources of income. In collaboration with the World Bank, large areas of land have been restored and rehabilitated. Another Norwegian-supported programme has contributed to farmers receiving close to 50 per cent larger grain crops, and that over 40,000 women and young people have found work.

Capacity building is an integrated part of Norway’s Climate and Forest Initiative’s (NICFI) efforts to reduce and reverse tropical deforestation. The Initiative contributes to a wide range of capacity-building related activities in a number of thematic areas. This work is closely related to the initiative’s efforts on transparency. Firstly, NICFI works on strengthening forest countries’ capacity to monitor their respective forests. This is done bilaterally, directly to some countries, but also at a more global level through partners such as the FAO. One key initiative is the satellite data program, which makes satellite images with high spatial and temporal resolution available to the public. Through this, the governments and other actors get access to data, but the program also creates a push for transparency, given its emphasis on publicly available data. Secondly, NICFI contributes to capacity building through engagement in policy design and discussion more broadly. The initiative’s dialogue with both governments in tropical forest countries and other actors such as civil society encourages transparency and facilitates capacity building related to policy making broadly. Lastly, NICFI supports capacity building to make sure that relevant actors can benefit from available mechanisms, such as the carbon market. Engaged and competent actors ensures that the carbon market is implemented with high integrity, which again is an important tool for reducing tropical deforestation.