It is primarily concerned with offering development aid to international partners, but in matters regarding Norway's International Climate and Forest Initiative (NICFI), Norad reports to the Norwegian Ministry of Climate and Environment.

Norad's functions are laid down in the agency's terms of references and annual letters of allocation issued by the Ministry of Foreign Affairs and the Ministry of Climate and Environment.

Norad works to ensure effective foreign aid, with quality assurance and evaluation.

Norad consists of the following departments: Norway granted NOK 36.6 billion in development assistance in 2016, corresponding to 1.11 per cent of Norway's gross national income (GNI).

According to the OECD, Norway’s total ODA (USD 5.2 billion, preliminary data) increased in 2022 due to aid to Ukraine and increased in-donor refugee costs, and represented 0.86% of GNI.