Norfund to invest in renewables in Bangladesh

The Norwegian Investment Fund for Developing Countries (Norfund) will invest around $1 billion (NOK 10 billion) in the renewable energy sector of eight countries, including Bangladesh.

The announcement was made on Monday in a landmark seminar titled "Investing in Our Planet: Introducing the Norfund Climate Investment Fund", organised by the Royal Norwegian Embassy in Dhaka and the Nordic Chamber of Commerce and Industry (NCCI) in Bangladesh at Sheraton Dhaka.

The Climate Investment Fund, managed by Norfund, marks a significant step in Norway's commitment to global energy transition. The allocation of NOK 10 billion is dedicated to investing in renewable energy and low-carbon technologies in developing countries with significant emissions from coal and other fossil fuel power production.

Among them, Bangladesh holds a prominent position. The fund is targeted at investing in a wide range of renewable energy projects, including large-scale endeavours like solar power plants and wind farms, as well as smaller opportunities such as rooftop solar installations. Additionally, the fund supports enabling technologies with substantial climate impact, such as energy storage and transmission infrastructure.

Anders Blom, senior vice president of Renewable Energy, Norfund, said, "The climate investment fund will allocate NOK 10 billion over the next five years, with 1 billion coming from Norfund's capital and 1 billion from the state budget each year. The fund became formally operative in May 2022, and Norfund has already put over 2 billion NOK to work."

"All profits and losses are shared equally. There is no interest for the fund," he added.

The chief guest of the event, Saber Hossain Chowdhury, the chair of the Parliamentary Standing Committee on the Ministry of Environment, Forest and Climate Change, said, "Bangladesh is not  only in need of investments in tackling climate impacts but also requires technical assistance in building knowledge and capacity and The Nofund Climate Investment Fund can be a great facilitator."

NCCI President Tahrin Aman said, "Bangladesh's energy and power sector is in the midst of a profound transition, shifting from traditional fossil fuels to renewable energy sources. This transition is not merely a change in our energy sources; it is a testament to our determination to build a sustainable and resilient future."

Espen Rikter-Svendsen, Norwegian ambassador to Bangladesh, said, "Access to capital – so important to develop the renewable energy industry. Reliable and experienced financial partners are key to facilitating further developments in renewable power generation."