Norway Fund Review Puts Some Defense Stocks in Reach
A committee proposed easing restrictions on some defense investments, but Norway’s current exclusion rules remain unchanged pending consultation and a parliamentary vote.
Key takeaways
- A committee recommended changes that could allow the fund to invest in some currently barred defense companies.
- The proposal retains the nuclear-weapons restriction but adds an exception for some firms based in allied nuclear-weapon states.
- Current rules remain in force until Norway completes its review and parliament votes on changes.
A Norwegian committee has recommended changing the ethics rules for the country’s $2.3 trillion oil fund, potentially allowing investment in some defense companies now barred from its portfolio. The fund’s current exclusion rules remain in place while Norway reviews the proposals.
The committee recommended retaining the restriction on companies that produce nuclear weapons, but changing its scope. Under its proposal, companies domiciled in a nuclear-weapon state under the Non-Proliferation Treaty that is allied with Norway could qualify for investment.
Current rules exclude companies including Airbus, BAE Systems, Boeing, BWX Technologies and Lockheed Martin because of their involvement in nuclear weapons production. The committee also proposed allowing investment in companies that make weapons Norway needs for its own defense.
It recommended removing the requirement to assess whether arms makers’ products are used by other countries in line with international humanitarian law. The committee also proposed limiting the Council on Ethics to analyzing breaches of the guidelines, rather than advising Norges Bank Investment Management on action.
The recommendations will go to public consultation, and the central bank is due to submit its response in January. Norway’s finance ministry plans to propose a new framework in the spring, with parliament expected to vote in mid-2027; Amnesty International Norway said the proposals risk weakening human-rights protections.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
