Largest sovereign wealth fund set to invest in renewable energy

Erna Solberg, Norway’s prime minister, told reporters in Oslo on Thursday that Norway is set to help combat climate change with significant renewable energy investment and a review of the world’s largest sovereign wealth fund is currently underway, according to the WWF.

They intend to invest US$840 billion oil fund to raise its exposure to renewable energy with potential to have a global impact bending the curve of climate change.

The fund currently has around 9 per cent of its investment in the coal, oil and gas industries. It also owns around 1 per cent of the world’s stocks.

This is a significant contribution in the transition to greener growth, and to reduce global CO2 emissions.

Norway has recently, improved its ethical investment policy since receiving pressure for it to dissociate from the coal industry.

WWF is currently running a campaign calling on financial institutions, including major sovereign wealth funds, pensions funds and multilateral development banks, to drastically increase their funding for renewable energy whilst cutting investment in fossil fuels.

Now, companies seen contributing to climate change have become the next candidates for potential exclusion, and climate-friendly technologies could be among the key sectors to benefit.

But ironically, one of the major problems is emissions from the oil sector, which bankrolls the wealth fund but is responsible for 25 per cent of Norway’s carbon pollution.

Norway’s finance ministry is expected will reveal if developing countries will benefit from a ‘green fund’ as well as deliver its decision on what parts of the fund should focus on in April 4.