OSLO – The Norwegian government is to set up a climate fund of about 10 billion kronor (1.15 billion dollars), Minister of International Development Dag-Inge Ulstein announced on Wednesday.

“This fund is a real breakthrough in climate finance through leadership and action,” Ulstein said.

Norway believes there is a growing and urgent need for climate investments around the world, in particular in developing countries where the impact of climate change is especially felt.

“We believe that by providing more risk capital to energy investments in these countries, we can contribute to making it possible and rational to choose renewables,” Ulstein said.

The fund is to be a significant contribution towards attaining the Sustainable Development Goals (SDGs) of the United Nations, Prime Minister Erna Solberg said.

The money is to be made available over the next five years, the government said.