Development Co-operation Profiles

Norway

Introduction

Norway’s development programme focuses on food security, climate, health, inequality, and sexual and reproductive rights. An increasing share of the budget is also spent on humanitarian assistance. Norway is committed to spending 1% of gross national income (GNI) as international support for achieving the Sustainable Development Goals (SDGs), placing it among the Development Assistance Committee’s (DAC) most generous donors of official development assistance (ODA). Norway’s total ODA (USD 5.5 billion, preliminary data) increased in 2023, representing 1.09% of GNI – the highest ODA/GNI ratio among DAC members.

Find the methodological notes behind the profile here.

Policy

Norway’s development policy identifies five thematic priorities: education, health, climate change, private sector development and humanitarian assistance. Norway’s partner countries include long-term development co-operation (Colombia, Ethiopia, Ghana, Indonesia, Malawi, Mozambique, Myanmar, Nepal, the United Republic of Tanzania and Uganda) as well as stabilisation and conflict prevention (Afghanistan, Mali, Niger, West Bank and Gaza Strip, Somalia and South Sudan). In 2023, Norway adopted a strategy for climate change, hunger and vulnerability, following the 2022 strategies for promoting food security and disability-inclusive development. Norway has a regional strategy for the Sahel region 2021-2025.

A high share of Norway’s core support to the multilateral system is channelled via the United Nations (UN), and Norway continues to play an important role in supporting peace and reconciliation processes globally. Norway also plays an important role in improving the humanitarian landscape through a clear humanitarian strategy, an increased budget and solid partnerships. Norway’s cross-government oceans strategy, Blue Opportunities, outlines domestic and international actions to protect the oceans’ contribution to sustainable development.

Poverty and inequality reduction focus

Poverty reduction is a long-standing objective of Norwegian development co-operation and reducing inequality is perceived as an important political priority under Norway’s current development policy, although overarching policy documents include limited explicit commitments or statements. Norway has a clear focus on reducing some dimensions of horizontal inequalities, notably gender inequality – through its dedicated action plan – and disability-based inequalities – through its dedicated strategy. Norway is also interested in the linkages between poverty, inequalities and climate action. According to Norway’s response to the DAC survey on poverty and inequalities and other research, the Norwegian Agency for Development Cooperation (Norad) is focusing on different enablers of inequality reduction and approaches to support them, and seeking ways to best operationalise the government’s rising prioritisation of tackling vertical inequalities.

Findings from OECD-DAC reviews

The 2022 OECD-DAC mid-term review highlighted Norway’s efforts to embed key institutional reforms and noted that Norway is strengthening its results-based management and learning. Quality assurance has been mainstreamed across thematic departments in Norad, reflecting a more thematic portfolio approach. The mid-term review encouraged Norway to continue strategic workforce planning, support robust public debate and action on policy coherence challenges, and continue building staff capacities on conflict sensitivity in programmes. It noted that Norway has taken steps to address 11 of the 12 recommendations from the last peer review. Learn more about Norway’s 2022 mid-term review [DCD/DAC/AR(2024)3/14] and 2019 peer review. The next OECD-DAC peer review of Norway is planned for 2026.

ODA allocation overview

Norway provided USD 5.5 billion (preliminary data) of ODA in 2023 (USD 6.8 billion in constant terms) representing 1.09% of GNI.1 This was an increase of 30.9% in real terms in volume and an increase in the share of GNI from 2022. Norway has consistently been among the top five most generous DAC providers since reaching the UN target in 1976. In 2023, Norway went slightly beyond its domestic commitment to allocate 1% of GNI as ODA. Norway provided all of its ODA as grants in 2022.2

In 2023, Norway ranked the 1^st among DAC member countries when ODA is taken as a share of GNI. In 2022, Norway had the highest share of bilateral allocable ODA commitments to domestic resource mobilisation (1.8%). It is among DAC members that channelled the highest share of gross bilateral ODA to Least Developed Countries (18.8%). The largest focus of Norway's bilateral ODA is economic infrastructure and services. The increase of in-donor refugee costs in 2022 means that shares of bilateral ODA allocated to other areas may have decreased from 2021 to 2022, even if absolute volumes have not.

 

Notes: Data on official development assistance (ODA) volumes (figure above) are in constant 2022 prices. Data for 2023 are preliminary. See the methodological notes for further details.

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Norway is committed to several international targets and Development Assistance Committee standards and recommendations. Learn more about DAC recommendations.

Performance against commitments and DAC recommendations

Description	Target	2021	2022	2023, preliminary
ODA as a share of GNI (%)	0.7	0.93	0.86	1.09
Total ODA to least developed countries as a share of GNI (%)	0.15-0.20	0.26	0.20
Share of untied ODA covered by the DAC Recommendation	100	100	100
Share of untied ODA (All sectors and countries beyond the scope of the Untying Recommendation) (%)		97.8	98
Grant element of total ODA (%)	>86	100	100

Note: ODA: official development assistance; GNI: gross national income; DAC: Development Assistance Committee. This table only includes information about ODA data-related DAC recommendations.

Norway provided a higher share of its ODA bilaterally in 2022. Gross bilateral ODA was 79.9% of total ODA disbursements. Thirty-nine per cent of gross bilateral ODA was channelled through multilateral organisations (earmarked contributions). Norway allocated 20.1% of total ODA as core contributions to multilateral organisations.

 

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ODA for Ukraine

In 2023, Norway provided USD 747.7 million (preliminary data) of net bilateral ODA to Ukraine to respond to the impacts of Russia's war of aggression, a 65.2% increase from 2022 in real terms. USD 211.2 million of the amount was allocated to humanitarian assistance, a 47.1% increase from 2022.

 

Note: The amount reported in 2023 is an estimate, based on preliminary figures reported to the OECD and published in April 2024.

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ODA to and through the multilateral system

In 2022, Norway provided USD 2.7 billion of gross ODA to the multilateral system, a fall of 14.7% in real terms from 2021. Of this, USD 1 billion was core multilateral ODA, while USD 1.6 billion was non-core contributions earmarked for a specific country, region, theme or purpose. Project-type funding earmarked for a specific theme and/or country accounted for 15.9% of Norway's non-core contributions and 84.1% was programmatic funding (to pooled funds and specific-purpose programmes and funds).

 

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Sixty-nine per cent of Norway's total contributions to multilateral organisations in 2022 were allocated to the UN system and the World Bank.

 

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The UN system received 50.6% of Norway's multilateral contributions, of which USD 899.6 million (67%) represented earmarked contributions. Out of a total volume of USD 1.3 billion to the UN system, the top three UN recipients of Norway's support (core and earmarked contributions) were the WFP (USD 163.4 million), UNICEF (USD 157.8 million) and UNFPA (USD 117.5 million).

 

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See the section Geographic, sectoral and thematic focus of ODA for the breakdown of bilateral allocations, including ODA earmarked through the multilateral development system. Learn more about multilateral development finance.

Bilateral ODA

In 2022, Norway's bilateral spending increased compared to the previous year. It provided USD 4.1 billion of gross bilateral ODA (which includes earmarked contributions to multilateral organisations). This represented an increase of 3.0% in real terms from 2021.

In 2022, country programmable aid was 35.4% of Norway's gross bilateral ODA, compared to the DAC country average of 42%. In-donor refugee costs were USD 516.4 million in 2022, an increase of 763.4% in real terms over 2021, and represented 12.5% of Norway's total gross bilateral ODA.

Norway disbursed USD 33.6 million for triangular co-operation in 2022 and has a strategy guiding its approach. Norway is a member of the Global Partnership Initiative (GPI) on Effective Triangular Co-operation. Its regional priority is Africa, with a focus on education. Learn more about triangular co-operation.

 

Note: NGO: non-governmental organisation.

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In 2022, Norway channelled its bilateral ODA mainly through multilateral organisations and public sector. Technical co-operation made up 2.5% of gross ODA in 2022.

 

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Civil society organisations

In 2022, civil society organisations (CSOs) received USD 1.0 billion of gross bilateral ODA, of which 6.5% was directed to developing country-based CSOs. Overall, 5.7% of gross bilateral ODA was allocated to CSOs as core contributions and 18.5% was channelled through CSOs to implement projects initiated by the donor (earmarked funding). From 2021 to 2022, the combined core and earmarked contributions for CSOs decreased as a share of bilateral ODA, from 28.1% to 24.2%. Learn more about the DAC Recommendation on Enabling Civil Society in Development Co-operation and Humanitarian Aid.

 

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Geographic, sectoral and thematic focus of ODA

In 2022, Norway's bilateral ODA was primarily focused on Africa. USD 812.1 million was allocated to Africa and USD 613.4 million to ODA-eligible countries in Europe (of which 89.9% for Ukraine), accounting respectively for 19.6% and 14.8% of gross bilateral ODA. USD 321.9 million was allocated to Asia. Europe was the main regional recipient of Norway's earmarked contributions to multilateral organisations.

Bilateral ODA by recipient country

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In 2022, 29.2% of gross bilateral ODA went to Norway's top 10 recipients. Norway's top 10 recipients reflect focus on Ukraine and partner countries for long-term development co-operation and for stabilisation and conflict prevention. The share of gross bilateral ODA not allocated by country was 52.6%, of which 23.7% consisted of expenditures for processing and hosting refugees in provider countries.

 

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In 2022, Norway allocated 0.20% of its GNI to the least developed countries (LDCs). Norway allocated the highest share of gross bilateral ODA (19.7%) to lower middle-income countries in 2022, noting that 52.6% was unallocated by income group. Least developed countries (LDCs) received 18.8% of Norway's gross bilateral ODA (USD 721.3 million). Additionally, Norway allocated 11.8% of gross bilateral ODA to land-locked developing countries in 2022, equal to USD 488.3 million.

 

Note: LDC: least developed country; LIC: low-income country; LMIC: lower middle-income country; UMIC: upper middle-income country; MADCTs: more advanced developing countries and territories.

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Fragile contexts

Support to fragile contexts was USD 942 million in 2022, representing 22.8% of Norway's gross bilateral ODA. Thirty-one per cent of this ODA was provided in the form of humanitarian assistance, decreasing from 35.4% in 2021, while 19.6% was allocated to peace, slightly increasing from 19.1% in 2021. Seven per cent went to conflict prevention, a subset of contributions to peace, in 2022 and in 2021. Learn more about support to fragile contexts on the States of Fragility platform.

 

Note: HDP: humanitarian-development-peace. The chart represents only gross bilateral official development assistance that is allocated by country.

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Sectors

In 2022, the largest focus of Norway's bilateral ODA was economic infrastructure and services. Investments in this area amounted to USD 1.1 billion (24.5% of bilateral ODA), focusing on energy (USD 926.9 million). Social infrastructure and services amounted to USD 1.1 billion (24.2% of bilateral ODA), of which Norway committed USD 259.7 million for health and population, accounting for 5.7% of gross bilateral ODA, and representing a 44.6% decrease from 2019 in real terms. Multi-sectoral aid or aid that is not allocable by sector (except humanitarian assistance) amounted to 1.3 billion (29.5% of bilateral ODA), focusing on refugees in donor countries (USD 516.4 million). Earmarked contributions to multilateral organisations focused primarily on social sectors and humanitarian assistance in 2022.

 

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ODA for COVID-19

In 2022, Norway disbursed USD 46.2 million in ODA for the COVID-19 response, down from USD 313.5 million in 2021. Regarding COVID-19 vaccines, Norway provided USD 1.7 million in ODA for donations of doses to developing countries in 2022, down 96.7% from USD 50.7 million in 2021. All COVID-19 vaccines accounted for donations of doses from domestic supply in 2022.

Gender equality

In the period 2021-22, Norway committed 36.6% of its screened bilateral allocable aid to gender equality and women's empowerment, as either a principal or significant objective (down from 43.5% in 2019-20), compared with the 2021-22 DAC average of 43.3%. This is equal to USD 1.4 billion of bilateral ODA in support of gender equality. Unpacking the gender equality data further:

• The share of screened bilateral allocable aid committed to gender equality and women's empowerment as a principal objective was 3.8% in 2021-22, compared with the DAC average of 3.9%.

• Norway includes gender equality objectives in 70.3% of its ODA for humanitarian aid, above the 2021-22 DAC average of 17%.

• Norway screens virtually all their bilateral allocable aid activities against the DAC gender equality policy marker (100% in 2021-22).

• Norway committed USD 18.7 million of ODA to end violence against women and girls and USD 29.1 million to support women's rights organisations and movements and government institutions in 2021-22.

Learn more about Gender Equality and the Empowerment of Women and Girls: DAC Guidance for Development Partners and the DAC Recommendation on Ending Sexual Exploitation in Development Co-operation.

 

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Environment

In 2021-22, Norway committed 30% of its total bilateral allocable aid (USD 1.3 billion) in support of the environment and the Rio Conventions (the DAC average was 35.1%), up from 21.5% in 2019-20. Unpacking the environmental data further:

• Twelve per cent of screened bilateral allocable aid focused on environmental issues as a principal objective, compared with the DAC average of 11%.

• Twenty-seven per cent of total bilateral allocable aid (USD 1.2 billion) focused on climate change overall, up from 16.5% in 2019-20 (the DAC average was 30.5%). Norway had a greater focus on mitigation (21.5%) than on adaptation (9.3%) in 2021-22.

• Thirteen per cent of screened bilateral allocable aid (USD 563.7 million) focused on biodiversity overall, up from 10.5% in 2019-20 (the DAC average was 7.2%).

Learn more about the DAC Declaration on Aligning Development Co-operation with the Goals of the Paris Agreement on Climate Change [DAC/CHAIR(2021)1/FINAL].

 

Note: In this figure, the category climate includes climate change mitigation and climate change adaptation efforts.

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Performance against environment and Rio Markers, 2021-2022

Marker	Constant 2022 USD million	% of bilateral allocable
Environment	936.5	21.3
Rio markers:
Biodiversity	563.7	12.8
Desertification	57.2	1.3
Climate change mitigation only	770.6	17.5
Climate change adaptation only	231	5.3
Both climate change mitigation and adaptation	176.6	4

Note: Individual Rio Markers should not be added up as this can result in double counting.

The OECD initiative Sustainable Oceans for All shows that Norway committed USD 81.9 million in support of the conservation and sustainable use of the ocean in 2022, USD 49.8 million less than in 2021. The 2022 value is equivalent to 2.1% of Norway's bilateral allocable aid.

Other cross-cutting sectors and themes

In 2022, Norway also:

• Committed USD 69.6 million of bilateral ODA to the mobilisation of domestic resources in developing countries, amounting to 1.8% of its bilateral allocable aid. Regarding the payment of local tax and customs duties for ODA-funded goods and services, Norway never or rarely seeks exemptions. It provides information on the OECD Digital Transparency Hub on the Tax Treatment of ODA.

• Committed USD 1.3 billion (35.2% of its bilateral allocable aid) to promote aid for trade and improve developing countries' trade performance and integration into the world economy. Norway is among the top 10 official providers of aid for trade globally.

• Committed USD 0.7 million (0% of its bilateral allocable aid) to address the immediate or underlying determinants of malnutrition in developing countries across a variety of sectors, such as health.

• Committed USD 187.2 million (4.9% of its bilateral allocable aid) to development co-operation projects and programmes that promote the inclusion and empowerment of persons with disabilities.

Mobilised private finance

Norway uses leveraging mechanisms to mobilise private finance for sustainable development. In 2022, the Norwegian Investment Fund for Developing Countries (Norfund) mobilised USD 753.6 million from the private sector through direct investment in companies and special purpose vehicles and shares in collective investment vehicles. This constituted a more than three-fold increase compared to 2021.

 

Note: CIV: collective investment vehicle; SPV: special purpose vehicle.

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A share of 91.9% targeted middle-income countries, while 3.5% went to the LDCs and other low-income countries (LICs) in 2021-22, noting that 14.7% was unallocated by income.

 

Note: LDC: least developed country; LIC: low-income country; LMIC: lower middle-income country; UMIC: upper middle-income country; MADCTs: more advanced developing countries and territories.

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Mobilised private finance by Norway in 2021-22 related mainly to activities in energy (77.6%), as its top sector. Furthermore, over this period, 80.5% of Norway's total mobilised private finance was for climate action.

Private sector instruments

In 2022, Norfund extended USD 519.8 million in the form of private sector instruments (PSI) to developing countries. Of this, loans accounted for 24.9% whereas equities accounted for 52.3%. Other private sector instruments included subordinated loans, preferred equities and other hybrid instruments.

 

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In 2022, USD 51.8 million (10%) of Norway's private sector instruments were allocated to the LDCs and other LICs, while a majority (52.4%) went to middle-income countries and LMICs in particular (28.1%). Moreover, USD 195.7 million were unallocated by income. Norway's private sector instruments mostly supported projects in the banking and financial services (48.2%) and energy (37.4%).

 

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Effectiveness of development co-operation

The Global Partnership for Effective Development Co-operation monitoring exercise tracks the implementation of the effectiveness commitments. Following the reform of the exercise over 2020-22, the 4th global monitoring round (2023-26) is underway. Information on partner countries' participation in the exercise as well as progress is available at the Global Dashboard. Norway's results from the 2016 and 2018 monitoring rounds can be found here.

To help improve the transparency of development co-operation, the OECD provides regular feedback to members on the overall quality of their statistical reporting and works with each member to ensure the data meet high quality standards before they are published. Regarding DAC/CRS reporting to the OECD, Norway's reporting in 2022 was on time, complete, and accurate.

Total official support for sustainable development

Total official support for sustainable development (TOSSD) is an international statistical standard that monitors all official and officially supported resources for financing the SDGs in developing countries, as well as for addressing global challenges. It provides a broad measure of development finance with the objective of increasing transparency and accountability of all external support that developing countries receive. In 2022, activities reported by Norway as TOSSD totalled USD 5.6 billion, up from USD 5.1 billion in 2021. Norway's TOSSD activities mostly targeted SDG 16 Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels and SDG 5 Achieve gender equality and empower all women and girls. Activity-level data on TOSSD by recipient are available at https://tossd.online.

Institutional set-up

Delivery of Norway’s development co-operation is shared between the Ministry of Foreign Affairs (MFA), the Ministry of Climate and Environment, Norad, Norfund, and the Norwegian Agency for Exchange Cooperation (Norec). The MFA is responsible for formulating policies and strategies. In 2022, it disbursed roughly half of Norwegian ODA. The Ministry for Climate and Environment is responsible for Norway’s International Climate and Forests Initiative (NICFI). Norad is responsible for implementing and managing grants under the responsibility of the Minister of International Development and NICFI, except for funds managed by embassies, Norfund and Norec. Norway’s embassies manage some of the bilateral development co-operation, Norec is responsible for facilitating academic exchanges between Norway and developing countries, and Norfund is Norway’s development finance institution. The Office of the Auditor General undertakes studies and publishes reports on the performance of Norway’s development co-operation efforts, including reports on its aid to the Syrian crisis (2023) and national follow-up to the SDGs (2021).

The MFA has 1 430 Norwegian and 1 150 local staff, for a total of 2 580. Among the Norwegian staff, 586 (41%) work on development; 32% of the total number of staff are based in Norway and 68% are based in country offices and embassies abroad. Norad has 278 staff (including full- and part-time staff), all based in Norway.

 

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Norad hosts an annual conference bringing together key Norwegian stakeholders on different themes. The 2024 Norad Conference focused on “rights and resistance”. CSOs active in development co-operation and humanitarian assistanceunder co-ordinate under umbrella organisations, in particular, the Norwegian Forum for Development and Environment and the Forum for Women and Development. The RORG-Network is a network of Norwegian non-governmental organisations engaged in development education and awareness raising in Norway.

Quality and oversight

Internal systems and processes help ensure the effective delivery of Norway’s development co-operation. Select features are shown in the table below.

Features of Norway’s systems for quality and oversight

Quality assurance	The Ministry of Foreign Affairs’ (MFA) Unit for Grant Management and the Norwegian Agency for Development Cooperation’s (Norad) Section for Grant Management Systems develop general staff capacity, templates and guidelines related to grant management. Grant management advisory units in thematic departments support the quality assurance of programmes.
Risk management	Norway’s work in fragile and crisis-affected contexts is supported by its risk management, including recognition of the potential impact of fiduciary, programmatic and reputational risks on the continuity and effectiveness of development co-operation. Risk management is based on the operating environment: the higher the risks, the more follow-up.
Innovation and adaptation	Norway launched Vision 2030, a “national brainstorming” initiative to identify and upscale innovative development solutions. Innovation is also a priority in Norway’s humanitarian strategy. It nurtures innovation labs and supports pilot projects, allowing partners to take risks.
Results management	Norad is revamping its results systems to enhance efficiency, improve dialogue, boost transparency and attain a cohesive approach across the agency. It is shifting toward uniform reporting formats and building in-house digital tools to assess and communicate results.
Evaluation	The Evaluation Department located in Norad is responsible for independent evaluations of development co-operation activities. The department’s function and role are defined in the instruction and strategy for evaluation, which guarantee the Evaluation Department’s independence to decide what to evaluate, how to evaluate, and to provide and communicate recommendations for follow-up. Visit the DAC Evaluation Resource Centre website for evaluations of Norway’s development co-operation.
Knowledge management and learning	Norad has set up a Department for Knowledge that is responsible for systematic knowledge management, aid statistics and analysis. The MFA has a “Data and Analytics Section” to facilitate learning across Norway’s programmes.
Communication and transparency	Norad’s Communications Strategy towards 2030 has three main objectives: 1) mobilise citizens and push for joint actions to reach the Sustainable Development Goals globally; 2) build the Norwegian public’s trust that Norad drives development forward and creates results; and 3) create a culture of openness and curiosity that motivates development and the sharing of new knowledge.

Additional resources

2022 OECD-DAC mid-term review of Norway: DCD/DAC/AR(2024)3/14

2019 OECD-DAC peer review of Norway: https://www.oecd.org/dac/peer-reviews/peer-review-norway.htm

Norwegian Agency for Development Cooperation (Norad): https://norad.no/en/front

Norwegian Ministry of Foreign Affairs (MFA): https://www.regjeringen.no/en/topics/foreign-affairs/id919

Norwegian Investment Fund for Developing Countries (Norfund): https://www.norfund.no

Norwegian Agency for Exchange Cooperation (Norec): https://www.norec.no/en/home

Norway's International Climate and Forest Initiative (NICFI): https://www.regjeringen.no/en/topics/climate-and-environment/climate/climate-and-forest-initiative/id2000712

Norwegian Forum for Development and Environment (ForUM): https://www.forumfor.no/en/om-forum

Forum for Women and Development (FOKUS): https://www.fokuskvinner.no/en

RORG-Network: http://www.rorg.no

Norway's practices on the Development Co-operation TIPs: Tools Insights Practices learning platform: https://www.oecd.org/development-cooperation-learning?tag-key+partner=norway#search

Member of the OECD Development Assistance Committee (DAC) since 1962.

The methodological notes provide further details on the definitions and statistical methodologies applied, including the grant-equivalent methodology, core and earmarked contributions to multilateral organisations, country programmable aid, channels of delivery, bilateral ODA unspecified/unallocated, bilateral allocable aid, the gender equality policy marker, and the environment markers.

Notes

← 1.  DAC members adopted the grant-equivalent methodology starting from their reporting of 2018 data as a more accurate way to count the donor effort in development loans. See the methodological notes for further details.

← 2.  Other providers also provide non-grants, which include sovereign loans, multilateral loans, equity investment and loans to the private sector.