The climate crisis disproportionally affects poor people in developing countries and is a major threat to the goal of eradicating poverty. Norfund\u2019s climate position outlines the way in which Norfund intends to invest in a clean and climate-resilient future in developing countries.<\/p>\n\n\n\n
In September 2020, Norfund adopted a new climate position. The position describes the way in which Norfund works to limit and reduce greenhouse gas emissions, the way we handle climate-related risk and opportunity and the way we support businesses and communities that must adapt to a changing physical climate and to a low-carbon future. <\/p>\n\n\n\n
5.7<\/div>
million<\/div><\/div>
<\/div><\/div>
tonnes CO2 emissions avoided by investments in total portfolio in 2020<\/p><\/div>
8<\/div>
million<\/div><\/div>
<\/div><\/div>
tonnes CO2 emissions avoided annually by all greenfield renewable plants Norfund has supported since inception<\/p><\/div><\/div><\/div>\n\n\n\n
Norfund contributes to avoiding emissions, mainly by investing in renewable energy. In 2020, our investments in clean energy contributed to avoiding 5.4 million tons of CO2 equivalents. (Calculated using the harmonized IFI approach: \u00abGHG Accounting for Grid Connected Renewable Energy projects\u00bb (2020))<\/p>\n\n\n\n
However, our investments may also contribute to increased emissions, directly or through the supply chain.<\/p>\n\n\n\n
Changes in climate expose our investments to increased physical climate risks – both acute (e.g. floods, droughts, cyclones) and chronic (e.g. changes in temperatures and weather patterns, sea-level rise) – that need to be assessed and managed. Transition risks resulting from political and technological changes to combat climate change may also affect the profitability and viability of our investments.<\/p>\n\n\n\n
Our position builds on three pillars: resilience, reduction and risk, as illustrated in the diagram below.<\/p>\n\n\n\n
\n
We build our climate position on three pillars<\/h2>\n\n\n\n<\/figure>\n\n\n\n
Resilience<\/h3>\n\n\n\n
By resilience, we mean the capacity of individuals, economies and societies to cope with the effects \u2013 physical and economic \u2013 of climate change. Job creation and economic development enables such resilience.<\/p>\n\n\n\n
Norfund’s contribution:<\/strong> The poor and vulnerable are the most affected by climate change. Norfund\u2019s priority to the Least Developed Countries (LDCs) and job creation helps make these groups more resilient to climate change.<\/p>\n\n\n
![\"\"](\"https:\/\/reports.norfund.no\/wp-content\/uploads\/sites\/2\/2021\/05\/Climate_pilars_2-1024x465.png\")
<\/figure>\n\n\n\n![\"\"](\"https:\/\/reports.norfund.no\/annualreport-2020\/wp-content\/uploads\/sites\/2\/2021\/04\/FDL-Client-3-scaled-e1622629372514-768x644.jpg\")
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