Renewable energy: Guarantee Scheme in the Amazon

The guarantees will unlock nearly NOK 8 billion in investment in renewable energy in areas with high levels of energy poverty through the Inter-American Development Bank.

– We are proud to announce the first guarantee under the Norwegian state guarantee scheme, and it is particularly positive that we are doing this together with Denmark and Sweden. Norway has been actively working to preserve the Amazon rainforest for 15 years, and the region suffers from extreme energy poverty, says Norad Director General Gunn Jorid Roset.

The Norwegian guarantee of USD 50 million forms part of a combined guarantee of USD 200 million. Sweden is contributing USD 50 million and Denmark USD 100 million. The guarantee reduces risk for the Inter-American Development Bank (IDB) across several countries and helps increase the bank's capacity to provide new loans for renewable energy projects.

For every dollar in guarantees, the IDB can increase its lending by almost four times. This means that the Norwegian guarantee alone will enable around NOK 2 billion to be invested in renewable energy. At least 60 per cent of this funding will go to the Amazon region. The remaining funds will be allocated across Central America to areas with limited access to energy and significant development needs.

The initiative supports the “Amazonia Forever” and “America en el Centro” programmes, which aim to contribute to equitable green development in the region. It also directly supports the objectives of the guarantee scheme: climate finance, increased access to energy for low-income groups and reductions in greenhouse gas emissions.

Read the article and watch the film: Standing Together Against Illegal Gold Mining in the Amazon