Norway wealth fund gets green light for fossil fuel divestment

(Climate Action, 14 Jun 2019) The world’s largest sovereign fund has been given permission to ditch investments in fossil fuels.

On Wednesday, the Norwegian Government voted into law for the Government Pension Fund Global to ditch investment in eight coal companies and 150 oil producers.

The Government Pension Fund Global was set up in 1990 to underpin long-term considerations when phasing petroleum revenues into the Norwegian economy.

Norges Bank Investment Management manages the fund on behalf of the Ministry of Finance, which owns the fund on behalf of the Norwegian people. 

The fund, that has a small stake in 9,158 companies, will drop coal investments worth an estimated $6bn, which could include shares in the mining company Glencore.

Despite divesting away from fossil fuels, the fund will retain stakes in oil companies, such as BP and Shell that are investing in clean technology.

The focus will now switch to investment in renewable energy, with the government proposing a cap of 2% of the fund within its so-called environment-related mandates, whose upper limit will be doubled to 120 billion kroner ($14 billion).

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Climate Action, 14 Jun 2019: Norway wealth fund gets green light for fossil fuel divestment