Despite Green Announcements, Norway's Sovereign Wealth Fund Putting More $ Into Coal
The world’s richest sovereign wealth fund has sunk more money into coal just three months after a high-profile pledge to dump fossil fuels as part of its commitment to responsible investing, according to financial analysis by three environmental groups.
Instead of reducing its overall exposure to businesses based on coal, the Norwegian Government Pension Fund (GPF) increased its holdings by 3bn Norwegian kroner to NOK 85.8bn ($1bn/£7.3bn) by the end of last year, the report Still Dirty, Still Dangerous said. The finding underlines the difficulties of making sure investors deliver on pledges to get out of coal, oil and gas in response to an anti-apartheid style global divestment campaign.
Others, including a key parliamentary committee on Wednesday, have called on the Norwegian pension fund, worth an estimated $850bn and based on the country’s oil and gas wealth, to quit coal for financial reasons. Global coal stocks have plunged more than 70% in value over the past five years, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
However, the Norwegian government pension fund remains one of the biggest single investors in coal mining companies and coal-based utilities, according to the report. While the fund did withdraw from 32 companies last year for environment and climate reasons, it did not reduce its overall holdings in the industry.
EDIT
http://www.theguardian.com/environment/2015/may/28/norways-sovereign-wealth-fund-accused-of-pretend-divestment
