The Ministry of Foreign Affairs (MFA) manages Norway’s relations with foreign countries, encompassing foreign aid, trade, and cooperation with international organizations. The Norwegian Agency for Development Cooperation (Norad), a directorate under the MFA, administers grants for long-term aid in developing countries and humanitarian assistance. Norad also provides aid and administrative advice to the Norwegian Ministry of Foreign Affairs and the Ministry of Climate and Environment.
Norway’s development policy aims to promote economic development, democratization, the implementation of human rights, good governance, and sustainable measures to lift people out of poverty. Key priorities include education, humanitarian assistance, health and vaccination, private sector development, climate change adaptation and mitigation, and human rights. In Asia, Norway’s official development program prioritizes long-term development cooperation in Indonesia, Myanmar, and Nepal. In addition, Afghanistan is a key partner country for stabilization and conflict prevention efforts.
In November 2024, Norway announced its intention to contribute up to $50 million to ADB’s Climate Action Catalyst Fund. The fund is designed to catalyze investments in transformative mitigation measures across ADB’s developing member countries in Asia and the Pacific. Norway’s Ministry of Climate and Environment emphasized that this contribution would enable Norway to access a range of high-quality mitigation projects in the region, while also promoting clean energy and low-carbon investments in the host countries.
Norway is a founding member of ADB and has, since 1966, committed $371.5 million to ADB special funds. Of this commitment, $327.1 million is for the Asian Development Fund (ADF). The ADF provides grants to ADB’s low-income, developing member countries to help reduce poverty and improve the quality of life.
20 November 2024
Norway has announced it will contribute to ADB’s Climate Action Catalyst Fund, a novel carbon fund under Article 6 of the Paris Agreement, providing a strong boost to international carbon markets.
3 May 2024
Donors and ADB agreed to a replenishment of $5 billion for ADB’s Asian Development Fund 14 and Technical Assistance Special Fund 8. The commitment was made during ADB’s 57th Annual Meeting.
ADB and Norway are lending support to reinforce and modernize Nepal’s power supply system, also aiming to contribute to social inclusion and gender equality, regional integration, and stronger institutional capacity.
In the plains of Nepal’s far-west region, better power supply has already helped improve the quality of life and support new economic activities.
The Government of Nepal is working closely with ADB and its financing partners to improve access to and quality of secondary education, beginning with competitive curricula, scholarships for poor students, and pilot-testing model secondary schools.
Bangladesh’s Primary Education Development Program introduced innovative approaches that changed the face of basic education in the country, helping increase primary school enrollment and completion rates over the last 20 years.
ADB and Norway collaborated on several knowledge products and events including the following:
Informative publication about the Innovative Finance Facility for Climate in Asia and the Pacific.
Active trust funds are those a) with ongoing projects; or b) with no active projects but have remaining funds.
Norway contributes to ADB’s development initiatives through two key avenues: Cofinancing and Special Funds.
Sovereign Cofinancing. In 2024, Norway committed $31 million in grant cofinancing to modernize Nepal’s electricity transmission and distribution infrastructure, ensuring reliable and sustainable electricity delivery while creating employment and business opportunities. Additionally, Norway provided $1 million for technical support to identify unelectrified households and coordinate electrification efforts in Kathmandu, Bagmati Province.
Nonsovereign Cofinancing. The Trade and Supply Chain Finance Program (TSCFP) supported over 30 transactions valued at $25.3 million with a bank domiciled in Norway from 2009 to 2024. During the same period, the TSCFP supported over 70 Norwegian exports and/or imports valued at $80.3 million. In 2024 alone, the TSCFP supported 7 Norwegian exports and/or imports valued at $0.6 million. Exports and/or imports were mainly to/from Bangladesh, Viet Nam, and Pakistan. Underlying goods involved mostly food and agriculture-related goods, industrial machinery and capital goods, as well as raw and non-energy commodities.
