Policy Updates

On December 1, 2024, the Norwegian government and the SV reached an agreement on the 2025 state budget reflecting several key priorities advocated by the SV, 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 15, 2024, Norway announced a contribution of NOK50 million (US$5 million) to support ARC, a program under the AU that helps countries respond effectively to climate-related crises such as droughts, floods, cyclones, and epidemics.

This initiative combines advanced weather forecasting, early warning systems, and innovative insurance solutions to enable quicker and more predictable disaster responses.

The funds, along with contributions from the US and the Netherlands, will allow African nations to purchase climate disaster insurance. These payouts ensure timely assistance to affected communities, enhancing their ability to cope with disasters. Norway's support will help ARC expand its reach to assist an additional 13.4 million people from 2024–2028.

This contribution is part of Norway’s broader commitment to building economic and climate resilience in LICs.

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 29, 2024, Norway announced a contribution of approximately NOK150 million (US$14 million) to the GBFF, an international fund aimed at supporting countries in protecting vulnerable ecosystems.

These funds were confirmed by Norway’s Minister of Climate and Environment, Tore Sandvik, during the COP 16 in Cali, Colombia.

The GBFF was initially proposed during the UN biodiversity summit in Montreal two years ago, largely to address concerns raised by low-income countries. A key aim is to secure substantial funding for the preservation of global biodiversity, an effort to which Norway has been a significant contributor.

Norway’s Minister of International Development Anne Beathe Tvinnereim emphasized that small island states and other vulnerable nations often lack resources to effectively manage environmental challenges. The fund’s inclusive structure aims to mobilize public, private, and philanthropic capital, making it well-positioned to support these countries.

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 October 2, 2024, Civita published an advocacy document for Norway to increase its financial contributions to IDA ahead of the upcoming IDA replenishment.

Despite IDA 's impressive results, Civita emphasized that Norway's contributions remain relatively low compared to other countries. For instance, Norway allocates half as much of its ODA to IDA as Sweden. Recently, Denmark also announced a 40% increase in its IDA funding, potentially surpassing Norway in the next round of contributions, even though Denmark’s ODA budget is just over half of Norway's. Over time, the portion of Norway's ODA budget directed toward IDA has significantly decreased.

Civita recommended a substantial increase in Norway's contributions to IDA in October, aligning with recommendations from the Office of the Auditor General and the Government appointed expert group called the Sending Committee.

The think-tank argued that core support for IDA is a more efficient use of funds than supporting the World Bank’s various thematic funds, which often have less certain outcomes. Investments through IDA have a multiplier effect and are more aligned with Norway’s development policy goals of focusing ODA on the poorest countries.

Beyond efficiency, Civita highlights a geopolitical rationale for increasing IDA funding. IDA is highly regarded by low-income countries and small island states, which view the fund as crucial for their economic and social development. Norway could enhance its visibility and recognition in the global development landscape by boosting its contributions.