Loophole lets Norway's USD 1 trillion fund boost its coal exposure

Norway's Sovereign Wealth Fund has made major divestments from coal assets in recent years, spurred on by parliamentary legislation enacted in 2015. However, an output threshold clause provides a loophole for the fund to increase its overall exposure to the major climate change culprit.

Photo: ritzau/Arkiv/Niels Hougaard

Norway's massive sovereign wealth fund has increased its exposure to coal reserves even after imposing restrictions on investing in the fossil fuel that has seen as one of the main catalysts for global warming, according to a report.

The findings are another illustration of how the ban, which restricts investments in companies that get more than 30 percent of their activity or revenue from coal, still allows investments in giants such as trader Glencore Plc and miner BHP Group Ltd. Opposition politicians and environmental groups have called on Norway to close "loopholes" as the government prepares to present a review of the rules this year.

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