Key Takeaways
- • A government-appointed committee led by former Central Bank Governor Svein Gjedrem recommended in a unanimous report, submitted to the Ministry of Finance, that Norway's sovereign wealth fund, with assets of nearly $2.3 trillion, lift its ethical-risk investment restrictions on nuclear weapons producers.
- • The report proposes allowing investments in companies based in the US, UK and France that produce nuclear weapons, citing Norway's reliance on NATO's nuclear deterrent and a worsening security environment.
- • The committee also urged the fund to stay out of diplomatic questions such as another state's conduct, including Israel's war in Gaza, and reserved such matters for Norway's diplomatic channels.
- • The review was prompted in part by the fund's 2025 divestment from US construction giant Caterpillar, which the fund tied to alleged rights violations linked to Israel's conduct in Gaza and the occupied West Bank; Washington has since pressured Oslo over the move.
- • Analysts warned that weakening the fund's ethics standards could prompt other global investors to follow suit, while opposition politicians in Norway have criticised the proposals.
Summary
A government-appointed committee has recommended that Norway's sovereign wealth fund, the world's largest with assets totalling nearly $2.3 trillion, be allowed to invest in companies that produce nuclear weapons. The report, released on Thursday and led by former Central Bank Governor Svein Gjedrem, was unanimous and was submitted to the Ministry of Finance. It forms part of a broader overhaul that would give the fund's manager, the Central Bank, greater discretion over how it addresses ethical risks, and it also proposes reshaping the role of the fund's independent ethics watchdog, allowing some assessments of potential investments to remain confidential.
The review was prompted in part by controversy over the fund's 2025 disinvestment from US construction giant Caterpillar. The fund said that move was prompted by Caterpillar's alleged involvement in rights violations by Israel during its war in Gaza and in the occupied West Bank, and Washington has since pressured Oslo over the decision. The committee said parts of the rationale for its appointment related to the fund's management during the Gaza war. It argued that decisions about another state's conduct should not be made by the fund but reserved for the ordinary diplomatic channels of the Norwegian authorities.
On nuclear weapons, the committee cited Norway's reliance on NATO's nuclear deterrent and a worsening security environment in recommending that investments in companies based in the United States, United Kingdom and France involved in nuclear weapons production be permitted. The report stated: "The global security situation has changed. Norway is building up its defence capabilities, and the protection provided by NATO's nuclear umbrella has become increasingly important." The committee also called for a review of the fund's broader exclusion of nuclear weapons producers.
The proposals have drawn criticism. Opposition politicians in Norway have objected to the potential changes. Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore Business School, told Al Jazeera that if the fund, "often considered a global gold standard," changed its stance on nuclear weapons, "it will open Pandora's box for many global investors to follow suit." Loh also warned that the change could encourage investment in nuclear companies in scenarios beyond the committee's condition that firms be based in allied, nuclear-armed NATO countries. Gareth Evans, former Australian foreign minister, described the report as "an encouraging initiative" in a world he said had become alarmingly complacent about nuclear war risks.
The recommendations come as European countries increasingly look to join France's nuclear deterrent umbrella amid US President Donald Trump's shake-up of NATO. Trump said on Thursday that Washington is holding talks with Russia and China aimed at denuclearising the countries with the largest nuclear stockpiles.
The review was prompted in part by controversy over the fund's 2025 disinvestment from US construction giant Caterpillar. The fund said that move was prompted by Caterpillar's alleged involvement in rights violations by Israel during its war in Gaza and in the occupied West Bank, and Washington has since pressured Oslo over the decision. The committee said parts of the rationale for its appointment related to the fund's management during the Gaza war. It argued that decisions about another state's conduct should not be made by the fund but reserved for the ordinary diplomatic channels of the Norwegian authorities.
On nuclear weapons, the committee cited Norway's reliance on NATO's nuclear deterrent and a worsening security environment in recommending that investments in companies based in the United States, United Kingdom and France involved in nuclear weapons production be permitted. The report stated: "The global security situation has changed. Norway is building up its defence capabilities, and the protection provided by NATO's nuclear umbrella has become increasingly important." The committee also called for a review of the fund's broader exclusion of nuclear weapons producers.
The proposals have drawn criticism. Opposition politicians in Norway have objected to the potential changes. Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore Business School, told Al Jazeera that if the fund, "often considered a global gold standard," changed its stance on nuclear weapons, "it will open Pandora's box for many global investors to follow suit." Loh also warned that the change could encourage investment in nuclear companies in scenarios beyond the committee's condition that firms be based in allied, nuclear-armed NATO countries. Gareth Evans, former Australian foreign minister, described the report as "an encouraging initiative" in a world he said had become alarmingly complacent about nuclear war risks.
The recommendations come as European countries increasingly look to join France's nuclear deterrent umbrella amid US President Donald Trump's shake-up of NATO. Trump said on Thursday that Washington is holding talks with Russia and China aimed at denuclearising the countries with the largest nuclear stockpiles.
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