Norway signs agreement on funding for Green Climate Fund

Source: press release, 24 January 2020

The Green Climate Fund is a unique global platform to respond to climate change by investing in low-emission and climate-resilient development
The Green Climate Fund is a unique global platform to respond to climate change by investing in low-emission and climate-resilient development (photo: GCF)

Norway has signed an agreement to provide NOK 3.2 billion in funding for the Green Climate Fund (GCF). The Government is doubling Norway’s annual contribution to the Fund, making this the largest funding agreement Norway has ever signed with a multilateral climate organisation.

“Climate change is the most important issue of our time. We have to cut emissions, and quickly. In addition, we must ensure that countries adapt to the impacts of climate change that is already happening, and we must limit the devastating consequences of climate-related natural disasters. We must not close our eyes to the fact that climate change is already destroying crops and forcing millions of people from their homes,” says Minister of International Development Dag-Inge Ulstein.

Norway intends to be a driving force in international climate change efforts. The Government has chosen to make the Green Climate Fund the primary channel for Norwegian funding for climate-related efforts in developing countries in the years ahead.

“The Green Climate Fund has delivered good results in developing countries. That is why we are now increasing our support to the Fund from NOK 400 million to NOK 800 million a year,” Ulstein says.

The Green Climate Fund was established by the parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2010. The aim of the Fund is to promote low-emission and climate-resilient development by providing funding to support mitigation and adaptation efforts in developing countries.

“The Green Climate Fund is playing a key role in implementing the Paris Agreement and in ensuring that we succeed in cutting greenhouse gas emissions and protecting the environment. That is why it is important for us to double our annual contribution to the Fund. This funding will be used to support projects to reduce greenhouse gas emissions and promote climate change adaptation in developing countries,” says Minister of Climate and Environment Ola Elvestuen.

The Executive Director of the Green Climate Fund, Yannick Glemarec, visited Oslo on 23 January to sign the agreement on Norway’s contribution of NOK 3.2 billion for the period 2020-2023.

The new Director General of the Norwegian Agency for Development Cooperation (Norad), Bård Vegard Solhjell, signed the agreement on behalf of Norway.

“Climate change is bringing more frequent and more intense extreme weather events, greater competition for natural resources, increased displacement, more health problems, weakened economic growth and greater inequality. And it is the most vulnerable groups and the least developed countries that are most severely affected. The Green Climate Fund’s efforts in developing countries are therefore extremely important,” Solhjell says.

The first replenishment of the Green Climate Fund took place in 2019. Some 27 countries, including developing countries, pledged contributions totalling approximately USD 10 billion (NOK 90 billion) in new funding. Even without a contribution from the US this time, this is an increase from the previous period.

“Norway is very pleased with the replenishment process, which has provided around USD 10 billion for climate action in developing countries. It is likely that Norway played an important role in achieving this result by announcing its pledge at an early stage of the process,” Solhjell adds.