Climate aid is effective, but not always well measured
Norwegian climate aid is responsible for reducing emissions equivalent to half of Norway's total emissions. However, a recent analysis reveals that there is insufficient knowledge about the specific contributions of some aspects of this aid.
Norad has reviewed results reported for 2023. In total, Norwegian climate aid is estimated to reduce and avoid greenhouse gas emissions by about 22 million tons. These are conservative estimates. Still, this corresponds to nearly half of Norway’s emissions, which were 46.7 million tons in the same year.
10 million tons can be attributed to the rainforest initiative, and around 8 million tons to investments through Norfund. In the remaining climate aid, which is mainly managed by Norad, emission reductions of about 4 million tons are estimated, but there are significant uncertainties in these figures.
From the left: Minister of climate and environment Andreas Bjelland Eriksen and Norad Director Bård Vegar Solhjell
– The potential for effective climate action through aid is substantial. We see this through Norway’s efforts to preserve the rainforest and through the Climate Investment Fund. But in other areas where we lack good knowledge about the results of climate aid, we cannot ensure that we are using the money as effectively as possible, says Norad Director Bård Vegar Solhjell.
Calls for clear goals and standardization
Over the past five years, Norway has doubled its climate aid, which totaled NOK 12.1 billion last year.
– Today, we measure parts of the climate effort by how much money is spent, not by the results. That’s not good enough. We must learn from the rainforest initiative and Norfund, and more clearly show what the money has achieved, not just how much we have given, says Solhjell.
The large uncertainty in the figures from the aid managed by Norad is due to the lack of robust and standardized methods for measuring results among different partners. Climate aid is, for example, intended to provide more people with access to electricity or contribute to food security—the key is to have clear goals that combine this with cutting emissions and/or avoiding future emissions.
Norway is not alone in lacking documentation on emission cuts from climate aid. Part of the challenge lies in multinational funds and mechanisms that several major donors finance jointly.
Norad has now, together with the OECD, initiated work to find common methods for calculating emission reductions in a standardized way.