Norway to provide guarantees of NOK 2 billion for renewable energy in the Amazon and Central America

'People in the Amazon region have very poor access to energy. This new guarantee will enable almost NOK 8 billion in renewable investments, creating significant positive impacts for people, the environment and economic development,' said Prime Minister Jonas Gahr Støre.

This is the first guarantee to be announced under the Norwegian Sovereign Guarantee Scheme for renewable energy investments, and it is being established in cooperation with Sweden and Denmark. The guarantee will be used to support the efforts of the Inter-American Development Bank (IDB) to promote renewable energy development in the Amazon and Central America. The announcement was made ahead of this year's UN Climate Change Conference, which is being held in Belém in the Brazilian Amazon.

The Norwegian guarantee of USD 50 million forms part of a total guarantee of USD 200 million to be provided together with Sweden (USD 50 million) and Denmark (USD 100 million). The guarantee will reduce risk for the IDB across multiple countries and free up additional lending capacity for renewable energy projects.

'This new guarantee will have a significant impact: for every dollar provided in guarantees, the IDB will be able to increase its lending capacity by almost four times that amount. This means that the Norwegian guarantee alone could unlock up to USD 195 million in new investments in renewable energy projects,' said Mr Støre.

At least 60 % of this funding will go to the Amazon region, while the remainder will be allocated to Central America - areas where energy poverty is widespread and there is a pressing need for development.

The new guarantee will support the IDB's Amazonia Forever and América en el Centro regional programmes, which seek to promote a just green transition in these regions. It is also directly aligned with the Norwegian Sovereign Guarantee Scheme's objectives of increasing climate finance, expanding access to energy among low-income groups and reducing greenhouse gas emissions.

The agreement has so far been set out in a letter of intent but is due to be signed by the end of 2025.