Norway introduces new guidelines for export financing of fossil energy

Starting next year, Export Finance Norway (Eksfin) will no longer finance new unabated oil and gas projects. The new restrictions are communicated in new guidelines from the Norwegian government. The changes in Eksfin’s guidelines will take effect on January 1st, 2025.

Limitations on Eksfin’s financing

Norway joined the “Statement on international public support for the clean energy transition” (also known as the Clean Energy Transition Partnership, CETP) during the climate summit in Dubai in December 2023. The new implementation guidelines introduce limitations on Eksfin’s financing within the fossil fuel sector. The government expects its policy instruments, e.g. financing agencies, to contribute to the green transition.

The new guidelines are an additional step in that direction, while supporting the transition within our important supplier industry. When many countries pull in the same direction, this has a great impact, says Minister of Trade and Industry Ms. Cecilie Myrseth (Labour Party).

Public financing must align with the Paris Agreement

The purpose of the Statement is to direct public financing away from fossil energy and towards clean energy. It is signed by 41 countries and institutions, including the UK, Germany, France, and the USA.

The transition from fossil to renewable energy is well underway both in Norway and internationally, but must go much faster if we are to achieve our climate goals. To speed up, we need tools that address financing. This applies to the entire value chain – including the supplier industry, which has an important role to play in the green transition and development of zero-emission technology. With these guidelines, we send a clear signal that new public financing must be in line with the Paris Agreement and the 1.5-degree target, says Minister of Climate and Environment, Mr. Tore O. Sandvik (Labour Party).

Transition in Norway’s Supplier Industry

Previously, export financing to oil and gas projects, including offshore vessels, made up a large part of Eksfin’s portfolio. Over the past ten years there has been strong growth in new exposure within sectors such as renewable energy, defense, fisheries, and aquaculture. In parallel, financing for fossil fuel related projects has declined sharply.

In the new guidelines, exceptions have been made for projects in the supplier industry that can be important for the green transition. This applies, for example, to multi-purpose vessels. Furthermore, Eksfin can still finance the sale and distribution of oil and gas when this is important to maintain security of supply and ensure a fair transition.

The changes in Eksfin’s guidelines will take effect on January 1, 2025

Norway is also working to introduce common regulations for financing fossil energy within the main international agreement for state export financing, the OECD Arrangement on Officially Supported Export Credits. Equal rules are important for the climate as well as a level playing field internationally.

Norway’s implementation guidelines are accessible here.