Norway plans billion-dollar clean energy initiative for poor

OSLO Tue May 24, 2011 10:03am EDT

A Masaai herdsman looks after his cattle near the power-generating wind turbines at the Kenya Electricity Generating Company (KenGen) station in Ngong hills, 22 km (13.7 miles) southwest of Kenya's capital Nairobi, July 17, 2009. REUTERS/Thomas Mukoya

A Masaai herdsman looks after his cattle near the power-generating wind turbines at the Kenya Electricity Generating Company (KenGen) station in Ngong hills, 22 km (13.7 miles) southwest of Kenya's capital Nairobi, July 17, 2009.

Credit: Reuters/Thomas Mukoya

Related Topics

OSLO (Reuters) - Norway wants to channel billions of dollars to renewable energies in developing nations, building on a scheme to protect tropical forests to which Oslo has been the biggest donor, officials said.

With cash to spare as the world's number six oil exporter, Norway wants governments and private investors to join a plan it calls Energy+ to promote green energies such as solar or wind power to combat climate change.

"Energy+ is an initiative to promote access to energy and low-carbon development" in developing nations, according to an internal document from the Ministry of International Development obtained by Reuters.

Developed countries promised in 2009 to raise climate aid to $100 billion a year from 2020, to help developing nations curb emissions of greenhouse gases and adapt to impacts such as floods, droughts, heatwaves and rising seas.

Few rich countries have outlined plans for how they will increase aid until 2020 as budget cuts bite in many nations and shorter-term domestic worries about jobs and mounting state debt eclipse concerns about global warming.

"We are trying to see if we can learn from rainforest conservation to set up a similar international scheme for environmentally friendly energy," Environment and International Development Minister Erik Solheim told Reuters.

In 2007, Norway promised 3 billion crowns ($537.3 million) a year to help developing nations slow deforestation, including projects worth $1 billion each for Brazil and Indonesia -- making the country a leader in such funding.


Trees soak up carbon dioxide, the main greenhouse gas, as they grow and release it when they burn or rot. Indonesia on Friday imposed a two-year moratorium on forest clearance as part of the scheme -- some environmentalists said the Indonesian plan was not ambitious enough.

"The one big difference from rainforests is that the private sector will have to be involved in a much larger way," Solheim said.

He said that the Energy+ project would seek billions of dollars from all donors. Asked if Norway's investments would match or exceed spending on forests protection, he said: "I hope so in the long run."

He said it would have to include "a huge private component involving Norwegian hydro-electric companies and stock exchange investors like banks and funds investing in hydro, solar, wind, etc in developing nations."

"This is a very good idea -- the approach to renewable energy is too fractured," said Arild Skedsmo, head of climate and energy at the WWF conservation group in Norway.

The ministry document says that global development aid to energy projects now totals about $7 billion a year. Norway doubled support for clean energy to 1.6 billion crowns ($286.6 million) in 2011 from 800 million in 2010.

The ministry in April alluded to the clean energy plan in a single, little-noticed sentence in a 76-page document about sustainable growth. Solheim said it was too early to say when the Energy+ project would be formally launched.

Norway last week welcomed Indonesia's decision to suspend new permits for logging on 64 million hectares (158.1 million acres) of land as an "important step forward."

For Reuters latest environment blogs, click on:

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see
Comments (3)
BanTshirts wrote:
Hope more countries follow Norway’s example!!

May 24, 2011 11:17am EDT  --  Report as abuse
ruhr wrote:
Fantastic Norway,this is brilliant.

As a frequent visitor to your Country I implore you show the same generosity to your own citizens.

Ask yourselves, why do most Norweigans struggle to cope with their power bills? Why only electricity in a country that exports gas to the UK?

Why do Norweigans travel to Sweden-soemtimes via specially arranged coach trips-to do their shopping, including the essentails of meat, fruit and vegetables? In most homes meat is a luxury and seldom a weekly meal, why?

Why is it necessary in a country with US$500 billion sitting in a soverign fund to impose a sales tax of 25%.

Yes, Norway, you are indeed a generous people and government. One can only hope the genorosity of the government can also be used to improve the living standard of its people.

May 24, 2011 6:45pm EDT  --  Report as abuse
Dave1968 wrote:
” Republican’s plan to burn the poor in clean energy drive”

May 24, 2011 7:28pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.


California's historic drought

With reservoirs at record lows, California is in the midst of the worst drought in decades.  Slideshow