"We have nominated Greta because the climate threat may be one of the most important causes of war and conflict", Norwegian parliamentary representative Freddy Andre Oevstegaard told local tabloid VG.
After the news of her nomination broke, Thunberg took to Twitter to say she was "honoured and very grateful for this nomination".
News of Thunberg's nomination comes the day before her Global Climate Strike, which encourages students across the globe to skip school to push their lawmakers to act.
Any national lawmaker can nominate somebody for the Nobel Peace Prize.
Parent Coral Dixon, who has two young children involved in the strike, said she had no problem with her children taking the afternoon off school to express their thoughts on an issue that would affect their future.
"We are striking because marginalized communities across our nation - especially communities of color, disabled communities, and low- income communities are already disproportionately impacted by climate change".
The Swedish 16-year-old is an inspirational yet unlikely leader of weekly school strikes that have gained momentum worldwide.
"There have been several people nominating me and I found out the first ones were maybe a month ago and then more people by time, but I think it is unbelievable", she said.
The Norwegian Nobel Committee is responsible for selecting the Nobel Peace Prize Laureates.
The names of nominators and nominees are not normally made public until 50 years have elapsed, it adds.
How is the Nobel Peace Prize nominated and chosen?