Foreign Minister Børge Brende presented the white paper and emphasised the importance of future economic growth in developing countries. He noted that other types of capital flows, such as foreign investments and remittances, have gradually become more important in developing countries than traditional aid.

The Norwegian aid budget must be used more strategically to contribute to achieving the development goals, Brende said today. Furthermore, he said, no country has ever succeeded in reducing poverty without national resource mobilisation, access to modern energy and job creation.

After last year’s cuts in the aid budget - especially in the area of renewable energy – today’s white paper suggests a considerable budget increase to renewable energy investments. The Foreign Minister underlined that the Norwegian government must focus one area where Norway has comparative advantages, such as renewable energy. The white paper, therefore, suggests doubling the current budget for renewable energy of NOK 500 million a year to one billion annually in 2019.

Clean energy is Norfund’s largest business area and constitutes about half of the portfolio.

We appreciate the confidence that is given to Norfund through this proposed capital increase over the next four years, says Norfund CEO Kjell Roland.

Norfund contributes to improving access to reliable, clean energy by investing in electricity generation projects where the need for capital is large. And Norfund’s investments are catalytic. For every dollar Norfund invests in energy, other investors add 14 dollars, concludes  Roland.

Download the White Paper here  (in Norwegian)