Policy Updates

On December 17, 2024, Norway announced a new substantial humanitarian assistance package for Ukraine, allocating nearly NOK1 billion (US$91 million) to seven Norwegian humanitarian organizations.

This funding, distributed through the Nansen Program, will support the efforts of the Norwegian Red Cross, Norwegian Church Aid, Norwegian People's Aid, Caritas Norge, Save the Children, SOS Children's Villages, the refugee and civilian response force, and NORCAP.

These organizations, working closely with Ukrainian authorities and civil society, are providing critical assistance to vulnerable groups, including children, refugees, and internally displaced people. The funding will ensure access to essential services such as food, shelter, electricity, heating, clean water, sanitation, education, healthcare, psychosocial support, and protection against GBV.

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 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 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.

On September 25, 2024, Canada announced that it will be co-hosting the Ministerial Conference on the Human Dimension of Ukraine's 10-Point Peace Formula on October 30-31, 2024 in coordination with Norway and Ukraine.

The conference will have the aim of developing a concrete plan to strengthen the International Coalition for the Return of Ukrainian Children, integrate the Women, Peace and Security perspective into the 10-Point Peace Formula, and identify approaches for post-return rehabilitation and reintegration for Ukrainians.

The conference will bring together Ministers of Foreign Affairs to advance the vision articulated in the Joint Communiqué on a Peace Framework developed at the Summit on Peace in Ukraine in June, 2024.

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.