Policy Updates

On December 3, 2024, South Africa announced that Norway will continue as a guest country during South Africa’s presidency of the G20.

Norway has served as a G20 guest country this year as well, following an invitation from Brazil. Norwegian Prime Minister Jonas Gahr Støre expressed gratitude, noting that South Africa’s invitation reflects significant trust in Norway’s contributions to the G20 process. This recognition underscores Norway’s global engagement and highlights the strong partnership between Norway and South Africa.

The two nations co-led the global ACT-A initiative during the COVID-19 pandemic, working to accelerate the development, production, and equitable distribution of vaccines. They have also partnered on issues such as gender equality, UN reforms for peace and reconciliation efforts.

On December 1, 2024, the Norwegian government and the SV reached an agreement on the 2025 state budget with a notable focus on domestic issues, particularly climate initiatives and social welfare programs.

The ODA budget for 2025 is set at NOK53 billion (US$4.9 billion), marking a slight increase from the NOK52.9 billion (US$4.7 billion) proposed in October. Although the overall allocation for ODA remains relatively unchanged, there are modest increases in specific areas, including civil society initiatives, disarmament and nuclear safety efforts, peace organizations, and humanitarian initiatives.

Domestically, the SV achieved significant gains, securing NOK7 billion (US$644 million) in additional funding for social welfare programs and climate initiatives. The largest portion of this funding is allocated to increasing child benefits, reflecting the SV’s focus on supporting families. Importantly, these new investments are financed through increased use of oil revenues, avoiding budgetary cuts to other programs or services.

On November 22, 2024, the Norwegian government allocated NOK26 million (US$2 million) to the Crop Trust Endowment Fund to support the long-term preservation of crop seeds.

This initiative underlines the critical role seed conservation and development play in ensuring global food security, safeguarding crops against climate change, disease, and other challenges.

The Crop Trust, an international organization dedicated to protecting seed diversity, ensures farmers worldwide have access to resilient seed varieties. Norway’s contribution supports the maintenance of vital infrastructure, including the Svalbard Global Seed Vault, which acts as a backup for global crop diversity, and international gene banks operated by the CGIAR research network.

According to Norweigan Minister of International Development Anne Beathe Tvinnereim, the Crop Trust plays a pivotal role in securing the global system for preserving agricultural biodiversity, with Norwegian leadership also represented on its Board by Dagfinn Høybråten.

On November 22, 2024, the Norwegian government proposed a NOK1.5 billion (US$137 million) increase to the international development budget for the Nansen Program, focused on supporting Ukraine.

This adjustment was intended to ensure that the country meets its target of allocating 1% of GNI to ODA in 2024. According to Norweigan Minister of International Development Anne Beathe Tvinnereim, Ukraine remains the largest recipient of Norwegian ODA, with the funds primarily aimed at bolstering critical energy security and preparing for the winter season.

Additionally, lower refugee-related costs in Norway have made NOK930 million (US$85 million) available for other global development initiatives. Of these funds, NOK176 million (US$16 million) is allocated to the Middle East.

Increased funding is earmarked for sectors such as health and education, each receiving NOK100 million (US$9 million). Additional priorities include renewable energy, food security, and development efforts in Afghanistan, Sudan, Myanmar, Haiti, and Colombia.

On November 18, 2024, Norway announced its contribution to the World Bank's IDA for the period 2026-2028 during Norweigan Prime Minister Jonas Gahr Støre's attendance at the G20 meeting in Rio de Janeiro.

The Norwegian pledge represents an increase of 50% compared to previous replenishment periods. Norway committed NOK5 billion (US$454 million) in this round, which is an increase from NOK3.4 billion (US$303 million) in the previous round.

According to Støre, the Norwegian funding will be used to help provide people with food and access to electricity, as well as to implement measures to address climate change.

Norweigan Minister of International Development Anne Beathe Tvinnereim says that the IDA is one of Norway's most powerful tools in the fight against poverty. She declared that increased support to the IDA is a means of translating the Africa strategy launched in August, 2024, into action by enabling Norway to promote efforts to increase food security and enhance climate-resilient agriculture, areas in which the IDA plays a key role.

A total of NOK600 million (US$54 million) of Norway’s contribution will also be set aside to be used over three years to promote food security.

On November 7, 2024, Norwegian Minister of International Development Anne Beathe Tvinnereim prepared to attend the 2024 climate summit, where climate finance and food security will be key topics.

She emphasized the importance of the summit as an opportunity to reinforce global climate efforts, noting that Norway’s work on climate and food security is closely linked. Tvinnereim believes that strengthening international climate cooperation is essential to ensuring future food supplies.

Tvinnereim plans to participate in events focused on food security and climate adaptation, including a meeting of the Alliance of Champions for transforming food systems, which Norway co-chairs with Brazil and Sierra Leone. Norway’s goal is to combat climate change without endangering food production and to boost climate financing for sustainable food systems through both adaptation and emissions reduction efforts.

On October 7, 2024, the Norwegian government presented its state budget for 2025, which includes an ODA budget of NOK52.9 billion (US$4.8 billion).

This amount remains largely consistent with the 2024 allocation, representing 0.92% of Norway's GNI, below the country’s longstanding target of 1%. Despite this, the government has reaffirmed its commitment to increasing ODA in future years, with the goal of eventually reaching the 1% target.

In presenting the budget, Norway’s Minister of International Development Anne Beathe Tvinnereim highlighted the importance of the 2025 allocations, emphasizing that the government is providing a robust budget designed to address critical global challenges. Beyond targeting immediate needs like poverty reduction and development, the budget also aims to foster trust and strengthen systems capable of addressing long-term challenges.

Key focus areas:

The 2025 development budget places particular emphasis on humanitarian assistance, climate action, business development, multilateral institutions, debt relief and refugee-related expenses in Norway (which will increase by 8%). However, certain areas will see reductions, including:

• A 22% cut in support for refugees outside of Norway.
• A 6% reduction in funding for peace efforts.
• A 3.9% decrease in civil society funding.

Despite some cuts, several areas will receive increased funding:

• Development assistance to Palestine will increase by NOK280 million (US$26 million).
• Humanitarian assistance will rise by NOK300 million (US$27 million).
• Climate adaptation and food security funding will grow by NOK380 million (US$35 million).

Crisis areas:

Ukraine remains Norway's top priority in light of the ongoing conflict with Russia. The Nansen Program for Ukraine will see a significant increase in funding, with the budget rising from NOK75 billion (US$6.8 billion) to NOK134.5 billion (US$12.3 billion). The program's duration has also been extended from 2027-2030.

The budget allocated substantial humanitarian assistance to Gaza, addressing the severe needs resulting from the ongoing conflict. Similarly, additional resources are directed towards Sudan, where escalating hunger and humanitarian crises are pressing concerns.

Global health:

Norway’s 2025 budget emphasizes global health cooperation and preparedness, with a focus on enhancing the world’s ability to prevent, detect, and respond to infectious disease threats and antimicrobial resistance. Key initiatives include:

• Preventing infectious diseases and reducing child and maternal mortality.
• Strengthening SRHR.
• Expanding UHC.
• Enhancing national healthcare systems, particularly in addressing climate-related health issues, such as the spread of infectious diseases.

While the allocation for health in 2025 stands at NOK3.6 billion (US$327 million), reflecting a NOK103 million (US$9 million) decrease from 2024, this aligns with the government’s prioritization of other areas like humanitarian assistance and climate adaptation. Norway remains committed to long-term global health partnerships, including a reallocated contribution of NOK20 million (US$2 million) to UNAIDS.

On October 7, 2024, Norwegian CSOs and political leaders expressed strong concerns about the government’s 2025 budget proposal on ODA.

Despite a slight increase in overall ODA spending, the government continues to fall short of the agreed 1% of GNI for ODA, which has drawn significant criticism from various quarters. The government plans to allocate NOK52.9 billion (US$4.8 billion) to ODA, which corresponds to 0.92% of GNI.

Lan Marie Berg from the Green Party criticized the government, stating, that Norway has profited from the war in Ukraine due to rising oil and gas revenues, and should contribute more to humanitarian efforts. Henriette Westhrin of Save the Children also expressed shock at the cuts, especially given the growing global crises.

Dagfinn Høybråten from Norwegian Church Aid and Hjalmar Bø of Digni pointed out that over NOK4 billion (US$343 million) of the budget is being used domestically for refugee reception, particularly for Ukrainians. They stated that this should not come at the expense of international development assistance meant for the world's poorest. Jan Egeland from the Norwegian Refugee Council echoes this sentiment, highlighting that the government's actions contradict its claims of international solidarity.

The SV and The Green Party strongly opposed the cuts, with SV's Kari Elisabeth Kaski calling them unworthy of a wealthy nation like Norway. Both parties emphasize that the reductions are coming when the world is facing severe humanitarian crises.

Dag-Inge Ulstein, from the Christian Democratic Party and former Minister of International Development, criticizes the budget for prioritizing domestic refugee costs over international development assistance. Ulstein also condemns the NOK150 million (US$13 million) cut to educational development assistance, arguing that it continues a trend that has seen over NOK1.1 billion (US$94 million) reduction in the funding to education since his tenure. He emphasized that these cuts could have been avoided if the government had met its own 1% development assistance target. This is also underlined by the Conservative Party, which says that Norway, previously a leader in education assistance, risks setting a negative example for other donor countries.

The Liberal Party noted the global refugee crisis and the need for greater international support. They also criticized the significant cut to education, pointing out that this leaves hundreds of thousands of children without access to schooling and opportunities for a better future. However, the party praises the increased funding for climate adaptation but argues that more could be done, particularly through mechanisms like the Climate Investment Fund.

On August 19, 2024, the Norwegian government launched its new strategy for engagement on the African continent.

Norwegian Minister of Foreign Affairs Espen Barth Eide noted that Norway's relationship with many African countries covers a wide range of interests, such as security policy, multilateral issues, cooperation on solving global challenges, and economic cooperation. The aim is to strengthen political and economic cooperation through partnerships based on equality, mutual interests, knowledge, and understanding.

The government outlined five specific areas of focus in the strategy:

• Multilateral and regional cooperation: Strengthen cooperation in multilateral forums, enhance African representation, and continue close collaboration with the AU;
• Security and peace efforts: Support African-led peace initiatives, integrate gender perspectives in decision-making, and bolster cooperation with the AU and UN on security;
• Democracy, human rights, and gender equality: Promote democracy, human rights, and gender equality through civil society engagement, justice reform, and educational access;
• Business, clean energy, and knowledge: Boost economic cooperation, promote Norwegian solutions, and support renewable energy development in African markets; and
• Climate, environment, food security, and health: Collaborate on climate action, sustainable food systems, and resilient health systems to address environmental and health challenges.

On July 24, 2024, Norway announced an investment of NOK100 million (US$10 million) in Aceli Africa to support small and medium-sized agricultural enterprises in Kenya, Uganda, Tanzania, Rwanda, and Zambia.

Small and medium-sized agricultural enterprises often struggle to secure bank loans due to high perceived risks entailing a need for large loss provisions. Climate change exacerbates risks, which can stifle lending to the agriculture sector. A lack of capital stifles local food production and industry growth, hindering market access for small farmers.

Aceli Africa is intended to address this issue by providing financial incentives and portfolio guarantees to banks, reducing perceived risk and encouraging them to lend to agro - SMEs. Aceli also offers training to bank employees on managing agricultural portfolios.

Norwegian Minister of International Development Anne Beathe Kristiansen Tvinnereim emphasized that the investment aligns with the ambitions of African states to boost local food production. The goal of the investment is to enable over 4,000 businesses to obtain financing, positively impacting nearly 700,000 smallholder farmers. By leveraging development funds to unlock private investments, the initiative is meant to significantly enhance job creation and food security.

Norway also supports initiatives like FASA, which targets larger enterprises and higher investments in the agricultural sector.