Policy Updates

On May 27, 2025, Norway formalized an agreement with Estonia under the EEA and Norway Grants, allocating EUR72 million (US$77 million) to support Estonia’s social and economic development. Norway will contribute 97% of the funding, with Iceland and Liechtenstein providing the remainder.

The initiative focuses on several priority areas, including the green transition, crisis prevention, health, and business development. It also aims to enhance Estonia’s physical and digital infrastructure, particularly for preserving cultural heritage during crises. Norwegian agencies such as the Directorate for Civil Protection and Innovation Norway will partner with Estonia to implement projects in energy efficiency, sustainable fisheries, and genetic medicine.

This agreement underscores Norway’s commitment to reducing social and economic disparities in Europe while fostering stronger bilateral ties with Estonia.

On May 22, 2025, Norway and the UNDP signed a framework agreement to develop a Renewable Energy Master Plan for Syria led by Norway’s Minister of International Development Åsmund Aukrust and UNDP Resident Representative Sudipto Mukerjee, which aims to address Syria’s energy crisis by promoting sustainable energy solutions.

The 12-month plan will outline Syria’s future energy needs, the role of renewable sources, and key measures like aligning regulations with international standards and creating a robust legal framework. Priority areas include improving energy access, reducing import dependency, fostering economic growth through job creation, and minimizing greenhouse gas emissions.

Integrated with Syria’s National Electricity Master Plan, the project will assess renewable energy potential, enhance energy efficiency, and develop technical capacity in renewable technologies. This collaboration underscores Norway and UNDP’s commitment to advancing Syria’s recovery and sustainable energy transformation while addressing climate challenges.

On March 10, 2025, Norway announced agreements worth NOK 248 million (US$ 23.14 million) to support 27 renewable energy projects, involving both Norwegian and international companies.

Norwegian Minister of International Development Åsmund Aukrust emphasized that these investments are vital for reducing poverty and achieving global climate goals, aiming to enhance access to clean energy, create jobs, and stimulate economic growth.

Administered by Norad, the business support scheme for renewable energy is announced annually and encourages private investment in clean energy solutions. Norad Director General Bård Vegar Solhjell noted that early-phase support has been crucial for significant investments in the sector.

The funding will be directed towards solar, wind, hydropower, and clean cooking stove projects in countries such as Zambia, Nigeria, Malawi, Cameroon, Uganda, Senegal, South Africa, Indonesia, and Nepal.

On December 9, 2024, the Norwegian Ministry of Foreign Affairs presented its new strategy for Norway’s engagement in the Sahel region.

Norway has been actively involved in the Sahel for decades, providing significant humanitarian and development assistance. Recent years have been marked by growing instability, violent extremism, and human suffering due to conflict, climate change, and weak structural governance.

The Sahel region, as defined by the strategy, includes Burkina Faso, Mali, Mauritania, Niger, Senegal and Chad. This new approach will guide Norway’s efforts in the region through 2030.

With substantial ODA already allocated to these nations, the strategy outlines how Norway aims to help reverse negative trends and establish a foundation for long-term sustainable development.

A key element of the strategy is the establishment of a Norwegian embassy in Dakar, Senegal. This step will provide a broader regional perspective for Norway’s Sahel engagement and allow for preventive efforts in neighboring coastal states.

The strategy prioritizes three main areas of focus:

• Humanitarian response and sustainable development: Addressing urgent humanitarian needs, supporting local resilience, preventing irregular migration and promoting inclusive sustainable development;
• Peacebuilding and stabilization: Preventing and combating violent extremism, supporting peacebuilding and stabilization efforts and encouraging the participation of women and youth in peace and security initiatives; and
• Democracy and gender equality: Promoting good governance, mobilizing national resources, fostering democratic development, and upholding human rights and gender equality.

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 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.