Export billions will be diverted from oil and gas to green industries, if SV gets what it wants in the budget negotiations.
Deputy head Torgeir Knag Fylkesnes and fiscal spokesperson Kari Elisabeth Kaski will set guidelines for Norway’s Export Financing. Photo: Adrian Nielsen / E24Published: Published:
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In two weeks, the party will present its alternative state budget for 2024.
There will be a sharp increase in the funding for Export Financing Norway (Eksfin) – a government body whose task is to promote Norwegian exports through guarantees and loans.
Among other things, SV will:
Create a new scheme through Eksfin with green risk loans. That NOK 10 billion, which has already been promised to Eksfin, should go to this scheme. Give an extra NOK 10 billion to Eksfin. The sum for green schemes through Eksfin will thus reach NOK 20 billion.
Most of the money through Eksfin currently goes to fossil industries (see fact box), and SV wants to change this.
– No public industry kroner should go to measures that do not contribute to the green shift, says deputy chairman Torgeir Knag Fylkesnes.
Will build up new industries
In the first half of 2023, NOK 1.3 billion went to renewable energy and green technology through loans and guarantees in Eksfin. In comparison, NOK 4.1 billion went to the oil and gas industry.
Export financing Norway (Eksfin)
A management company under the Ministry of Trade and Fisheries.
Eksfin will promote Norwegian exports by assisting Norwegian companies, foreign buyers and their banks with a wide selection of government loans, guarantees and competent advice.
Export Financing Norway (Eksfin) was established on 1 July 2021 through the merger of the Guarantee Institute for Export Credit (GIEK) and Export Credit Norge AS.
As of 31 December 2022, outstanding loans under the Export Credit Scheme were NOK 35.1 billion. Of this, NOK 1.3 billion was linked to renewable power production and NOK 14.9 billion to fossil energy.
In the period January to July 2023, new loans were granted for NOK 10.5 billion. Of this, NOK 1.3 billion was renewable and green technology and NOK 4.1 billion was related to oil and gas.
Sources: Exfin and regjeringen.no
Sea view
SV believes that state bodies must take a greater role in converting industry and companies from fossil to green. Concretely, the party wants to transform Eksfin into a kind of “green investment bank”, where loans and guarantees are given to export-oriented green industries in an early phase.
– As of today, oil and gas have far more access to capital and willingness to invest. We work along two axes, by making it less attractive to invest in oil and gas and by developing public schemes to speed up new green projects. Eksfin is a good arrangement for developing this further.
FROM GRAY TO GREEN: SV will change Eksfin to invest in green projects rather than oil and gas. Photo: Adrian Nielsen / E24
In SV’s alternative budget, 20 billion will therefore go towards building up new industries such as hydrogen, offshore wind, batteries and carbon capture and storage.
More risk for the money
When asked if it is not what the government has already promised with fresh money for the “Green industry boost”, Knag Fylkesnes replies that Eksfin is primarily managed according to what provides profitability and low risk.
– We want to increase risk appetite, he says.
SV will demand that Eksfin must contribute to Norway’s climate commitments.
– Oil and gas undermine our climate goals, so it will not be possible to give money for this.
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– How realistic is it to achieve this?
– We think it is very close, says SV’s deputy chairman.
Important question in the negotiations
At the end of 2022, outstanding loans under Eksfin amounted to NOK 35 billion. As much of the money is already tied up, SV believes it is natural to start with “new money” and further develop this into green investments.
When asked what must be cut in the state budget in order for new money for Eksfin to be possible, SV replies that this is a question of loans and guarantees, and with the possibility that Eksfin could potentially enter the ownership side of projects.
– It will not require major cuts or reprioritisation, apart from what is about risk, says Knag Fylkesnes.
– Isn’t there a certain danger that we will lose a lot of money?
– If we don’t dare to take risks, we will never be able to lift the new projects. This is the path we must take if we are to manage to build the industries of the future.
– Is this something you will demand in the negotiations?
– Making Eksfin greener and more powerful is an important contribution to accelerating the green shift and reducing greenhouse gas emissions, which is a key goal for us in the negotiations.
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The government is giving billions to new investments in Green industry promotion
2023-10-24 19:51:34
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