The new Climate Investment Fund became formally operative in May 2022, and Norfund has already put over 2 billion NOK to work.
So far Norfund has made investments in South Africa and India. The strategy, approved by Norfund’s board, also allows for investments in Vietnam, the Philippines, Cambodia, Indonesia, Sri Lanka, and Bangladesh. Norfund has already identified investment opportunities in these eight countries totaling over 8 billion NOK.

About the management of the Climate Investment Fund
The Climate Investment Fund is Norway’s most 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.
The climate investment fund will allocate 10 billion NOK over the next five years, with 1 billion coming from Norfund’s capital and 1 billion from the state budget each year.
The new instructions to Norfund state that “The purpose of the Climate Investment Fund is to contribute to reducing or avoiding greenhouse gas emissions by investing in renewable energy in developing countries with large emissions from coal and other fossil fuel production”.
As with Norfund’s usual operations, the goal is to help activate investments “that would otherwise not be made”.

Norfund will prioritize investments in the production and development of renewable energy, as well as areas closely tied to this, such as battery storage.
Norfund will primarily invest in equity, with a 20-35% ownership interest, and the individual investments will be around 50-150 million dollars. The choice of investments will be governed by where Norfund has competence and can make the largest possible difference.
Norfund will manage the Climate Investment Fund on behalf of the Ministry of Foreign Affairs. The investments under the Climate Investment Fund will be made under Norfund’s own name, but the fund’s investments and portfolio will be managed separately from Norfund’s other activities.