Norway may open €2 trillion wealth fund to nuclear weapons makers

Norway may soon permit its €2 trillion sovereign wealth fund to invest in nuclear weapon manufacturers, according to a recent government recommendation. The proposal, made by a government-appointed commission, aims to update the fund's ethical guidelines, which currently exclude 14 major defense companies due to their involvement in nuclear arms production. These companies, including Airbus, BAE Systems, Boeing, Lockheed Martin, and Safran, are among the fund's current restricted investments.

The proposed change would allow the fund to invest in nuclear arms manufacturers from nuclear-weapon states that are also NATO allies of Norway. This would likely include several British, French, and American defense firms. Former central bank governor Svein Gjedrem, who chaired the commission, emphasized that the change would address the ethical dilemma of the fund's inability to invest in companies crucial for Norway's security, especially given escalating nuclear threats from Russia and China.

The ethical evaluation criteria, such as the prohibition of biological and chemical weapons, landmines, cluster bombs, and substances like coal, tobacco, and cannabis, would remain unchanged. The commission's report, a 434-page document, has been submitted to Finance Minister Jens Stoltenberg, a former NATO secretary general. Stoltenberg highlighted the paradox that the fund cannot invest in potential security partners during times of heightened nuclear threats.

Additionally, the commission recommended adjustments to the Council on Ethics, an independent body that advises the central bank on ethical matters. The council will continue to assess risks posed by companies violating ethical standards but will lose its authority to directly exclude them from the fund's portfolio. The report's recommendations will be open to public consultation until January 15 before the government submits its assessment to parliament in the coming spring.

The fund, which invests in over 7,000 companies globally and owns about 1.5% of the world's listed shares, has already faced criticism from some left-leaning political parties.