Norwegian Oil Fund Opts Out of Fossil Fuels

oil chimney

writer icon Wilma Johansson     Samuel Zeller   |   Sustainability     🕐 14. Jun. 2019

The biggest sovereign wealth fund in the world, the Norwegian 'Government Pension Fund Global', is set to pull out of fossil fuel investments to the value of 50 billion Norwegian kroner (NOK).

The Government Pension Fund Global (GPFG), which is also known as the ‘oil fund’ due to having been founded on the country's oil and gas revenue, will discontinue investments not only in coal, but also when it comes to oil to some extent.

Still an oil fund
According to reports by the Guardian, the fund will however keep some of its investments placed into oil companies if the companies in question are “limiting their exposure to fossil fuels by investing in clean energy technologies”.

The shift away from fossil fuels investments means that the fund will be less dependent on oil prices. However, it does not mean that GPFG is turning its back the oil industry as a whole:

"The oil industry will be an important and major industry in Norway for many years to come,” a statement from the fund said.

A renewable energy focus
This development sees the fund entering into the areas of green energy with a renewed, and legally backed, interest in solar and wind when it comes to investments and investors.

The fund’s move comes as the Norwegian finance ministry predicts global renewable energy infrastructure growth at a rate of almost 50 percent: primarily from wind and solar, the Guardian reports.

Government Pension Fund Global
The GPFG has a market value of NOK 9 123 billion ($1 trillion) at time of writing. It is invested in 3 investment areas, in 9 158 companies, in 73 countries worldwide.

As previously reported by ISB, the oil fund has also invested in “five companies belonging to the medical marijuana industry,” to the value of NOK 1.36 billion.

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