On Dec. 10, NOR ENV outlined fossil energy export financing guidance.
NOR ENV said that from 2025, Eksfin will no longer finance new oil/gas projects without purification technology, under new fossil energy export financing guidelines.
Overview
NOR joined Statement on international public support for the clean energy transition at the climate summit in Dubai in Dec. 2023, to shift public funding from fossil fuels to clean energy; has been signed by 41 countries/institutions, including UK, GE, FR, US.
Guidelines for implementation involve changes regarding which projects Export Finance Norway (Eksfin) can finance, and are a next step towards ensuring policy instruments contribute to green transition, while also supporting the supplier industry.
Previously, oil and gas projects (e.g. offshore vessels, made up a large part of Eksfin's portfolio, but past 10 years have seen strong growth in sectors such as renewable energy, defence, fisheries, aquaculture, while fossil energy financing has reduced.
Guidelines' exceptions include those may aid green transition e.g. supplier industry.
Can still finance oil and gas sale/distribution to safeguard supply/ensure fair transition.
Also working to introduce common regulations within the international main agreement for OECD state export financing - arrangement on officially supported export credits.
Effectiveness
The changes will come into effect from Jan. 1, 2025.
