Norway, the world's third largest oil producer, said Oct. 5 it would create a 20 billion kroner ($3 billion) fund to promote renewable energy. The government's 2007 budget proposal, to be presented on Oct. 6, includes the provision of 10 billion kroner for the fund and a further 10 billion in 2009.
Proceeds from the fund are to be transferred to Enova, a government agency charged with promoting the production and use of environmentally friendly energy sources. The total return from the investments is estimated to reach 880 million kroner per year when 20 billion has been paid into the fund. This amount will come on top of Enova's 700 million annual budget, the Ministry of Petroleum and Energy said.
A third of the money will be used to support the use of renewable energy. The remainder of the cash will be directed to energy efficiency initiatives and the promotion of non-polluting heating sources.
Copyright Agence France-Presse, 2006