Norfund plays a vital role in unlocking investments in renewable energy that would not otherwise be realized, thereby avoiding emissions and mitigating climate change. Investing in renewable energy in developing countries is crucial for building sustainable and resilient energy systems while reducing emissions.
estimated ex-ante CO2e emissions avoided from projects financed in 2022
Expected avoided emissions (ex-ante)
Norfund’s investments in renewable energy are contributing to the replacement of electricity that would otherwise have been produced from fossil fuels, thereby preventing the emission of greenhouse gases. In 2022, Norfund financed 5 investment projects that, when operational, are estimated to avoid 6.2 million tonnes of CO2e emissions annually.
Additionally, Norfund financed a transmission line in India that will enable 2.5 GW of wind power to feed onto the grid, resulting in an estimated 7.2 million CO2e avoided annually.
Avoided emissions in 2022 (ex-post)
As of 31.12.2022, too few investments under the Climate mandate were operational to be included in the reporting.
Methodology for calculating avoided emissions:
Norfund uses the harmonized IFI approach ‘Methodological Approach for the Common Default Grid Emission Factor Dataset’ (2022) to estimate avoided emissions from our energy investments. For ex-ante estimated avoided emissions, we use the “Combined margin”, while for estimating avoided emissions ex-post, we use the emission factor for the reporting year, in line with PCAF reporting standard.
 Combined margin: combines “Operating Margin” – existing power plants whose operation will be most affected by the project, and “Build Margin” – average emission intensities for new electricity generation projected over the next 8 years according to the most recent World Energy Outlook (IEA).