Clean Energy

Access to sustainable, affordable and reliable energy services is crucial in achieving the Millennium Development Goals (MDG), especially MDG 1 (eradicate extreme poverty and hunger) and MDG 7 (ensure environmental sustainability).

The Clean Energy for Development Initiative

•    Together with the Oil for Development Programme an important part of Norwegian Development Assistance
•    was approved by the Minister of International Development 9 April 2007
•    strengthens the links between environment, climate and energy in Norwegian development cooperation
•    will contribute to improving access to clean and affordable energy in partner countries
•    will focus on long-term administration of natural resources and efficient energy use
•    will contribute to economic and social development in partner countries through bilateral, multilateral and regional channels
•    contributes to the international cooperation on reducing climate gas emissions
•    is led by the Ministry of Foreign Affairs, while the Secretariat of the initiative is assigned to the Norwegian Development Agency (Norad).

Access to energy is also a prerequisite for economic development. Norway has for several years supported energy projects in its development cooperation.

However, in 2007 it was decided to increase the Norwegian support to energy; hence the Clean Energy for Development Initiative was launched, and energy has become one of the main focus areas of Norwegian Development Cooperation.

Norwegian support to Clean Energy

Through the Clean Energy for Development Initiative Norwegian funds contribute to poverty reduction by supporting rural electrification with for example solar power, or through support to efficient wood fuel - or charcoal stoves.

  • In 2010 Norway supported household installation of 80 000 solar home systems in Nepal.

Norway also provides funds to development of infrastructure as transmission and distribution lines to increase access to the grid, and invest in feasibility studies and development of hydropower stations, wind parks and solar plants to generate power.

  • In 2010 a 73 km long subsea cable, connecting the island of Pemba to the Tanzanian national grid, was opened. The Norwegian contribution of NOK 300 million has ensured the 400 000 people living in Pemba a more reliable and stable source of electricity.

Another important area of support for Norway is capacity building and institutional cooperation. Contributing to building sound and well functioning institutions, and thereby better framework conditions for the energy sector to operate in, is crucial for development.

Clean Energy Fights Poverty

Some number

  • in 2010 Norway contributed with NOK 700 million to energy projects in our various cooperation countries
  • in addition Norway supported energy related projects through various multilateral channels with approximately NOK 150 million
  • Norfund, the commercial investment instrument in Norwegian development cooperation, invested and/or financially committed NOK 285 million to energy projects in 2010
  • Norwegian assistance to clean energy by region in 2010:
    - Africa: 56 %
    - Asia: 19 %
    - Global: 15 %
    - Europa/euraisa: 7 %
    - Latin America: 3 %

Energy is essential for both economic and social development. Access to sustainable energy services is necessary for stimulating economic activities, such as creating businesses that is generating employment. Moreover, access to sustainable energy services and improved cooking stoves can also contribute to significant health improvements. The health burden from indoor air pollution is highest amongst poor families who tend to use cheap bio-mass and low quality coal fuels in primitive stoves without proper ventilation. Women and young children are particularly vulnerable as they often spend a lot of time indoors and they are often responsible for cooking the family's meals.

Bio-mass still covers 60-90 percent of the energy available for households in developing countries, this count for about 3.5 billion people in total.

Poor People are the Most Vulnerable to Climate Change

More than 80 per cent of the world's energy use today is based on fossil fuels, which leads to large climate gas emissions. Poor people are the most vulnerable to climate change, because they lack the necessary resources to adapt to climate change and because their value creation is largely based on natural resources. Increased investment in low-carbon technology, improved energy efficiency and increased use of renewable energy at prices that are affordable to poor people is crucial in achieving the MDGs.

The achievement of the MDGs is threatened by climate change. Support for development and use of renewable energy services in developing countries is an important contribution in the fight against climate change. Climate change and access to clean energy is one out of four thematic priority areas in the Norwegian Action Plan for Environment in Development Cooperation.

Annual reports

The Clean Energy for Development Initiative produces an annual report. This report contains comprehensive information about the Norwegian efforts in the energy field for the preceding year. For more information about the Initiative, activities and programmes in Norwegian cooperating countries, cooperating partners, and more information about to whom, how and where the support is channeled please see the Annual Report for 2010.