Contribution of CEO Tone Lunde Bakker in connection with report launches on Norway’s energy industries in Oslo 21, November 22.
Export and emission cuts are core elements in Eksfin’s mandate, Eksfin has therefore contributed to financing the renewables report in recent years.
This year, energy has become uniquely actual in terms of both security and financial policies, and continues to be so in relation to industry and the climate. I would like to say five things based on the situation of the energy industries from Eksfin’s standpoint:
1. Firstly: sustainability
This word has multiple meanings. We must cut both emissions, which gives climate sustainability, and restructure and build a profitable Norwegian business community, i.e., financial sustainability.
In other words: emission cuts must be profitable otherwise financing won’t be available, and if it’s not financed, it won’t happen.
2. Secondly: public-private sector cooperation
All other countries currently experiencing success with green growth have exerted public and private-sector muscle, by which I mean joint financial muscle, along with good public regulation, private initiative and knowledge. E.g., the EU Green deal and Fit for 55 and the USA’s Inflation Reduction Act. We should have equivalent initiatives in Norway. The projects, risk and investments are massive, and extend over many years, as such the State and business community must enhance them together at the same time.
Example: Earlier a start-up might need MNOK 17 – now it can be BNOK 17, e.g., battery, hydrogen and offshore wind.
Eksfin therefore uses a lot of resources to coordinate tightly with companies, clusters and other public actors. We have a pipeline of more than BNOK 70 for green projects.
3. Thirdly: Europe
Amidst national business and global ecological requirements, we must continue to help our European neighbours and trading partners through an accelerated energy shift. At the same time Europe is the largest market for Norwegian offshore wind suppliers.
Therefore, Eksfin is working closely with other Nordic and European export credit agencies to finance projects and build competence together. So far, Eksfin has given BNOK 10 in financing for global offshore wind projects – most in Europe. We have done this with Danish, Swedish and French export credit agencies.
4. Fourthly: value chains
The petroleum, maritime and seafood industries have built widespread profitable value chains in Norway. We must accomplish the same with the new green industries. New initiatives like the Entry programmes for offshore wind, in which Eksfin participates with inter alia IN and Norwep, are therefore paramount.
5. Fifthly: the shift
Today we will be presented a report on fossils and a report on renewables. Norway has had a foothold in each industry for decades. Eksfin financed a lot of oil-related industries prior to 2015, but afterwards we have consistently financed more offshore wind, solar power and other environmentally-friendly technology.
For some companies, the cash flow and security arising from oil and gas projects are essential in order to invest in the people, knowledge and equipment that will be required to deliver green solutions in years to come.
My main point is:
The global green shift is irreversible – the question is to what extent will Norwegian companies be able to take part in the new systems and efforts to come? We must put into place a public-private sector cooperation to enhance major financing and to assist with risk mitigation. Eksfin will contribute to this!
Thank you for your attention – I look forward to the presentations, discussion and questions afterwards.