Connect with us

Hi, what are you looking for?

CleanTechnica

Coal

Norway To Assess Fossil Fuel Assets Case-By-Case

Norway’s $870 billion sovereign wealth fund announced the findings of a government commission Wednesday of its current coal, oil, and gas investments, stating that the most harmful of these climate offenders would be excluded from the Fund on a “case-by-case basis.”

“We believe active ownership and engagement are appropriate primary tools for the [fund] to use to address climate-related issues,” the Ministry of Finance wrote in a press release Wednesday. Furthermore, the Ministry of Finance propose that the fund will continue to support relevant climate change research.

Just as multinational energy company Siemens confirmed in September, Norway’s wealth fund will not be stepping away from fossil fuel investment, believing it to be an important “part of the energy mix for decades to come.” On top of that, the Ministry of Finance does not believe that the Fund should be used as a climate policy instrument, calling it both “inappropriate and ineffective.”

Therefore, the Ministry’s aim is to become “good” owners of assets, “from a financial and ethical perspective,” believing these to be “the appropriate primary tools for the [fund] to use to address climate-related issues.”

As such, Norway’s Ministry of Finance is proposing the creation of a new criterion be included in the Fund’s Guidelines for Observation and Exclusion — a “contribution to climate change” clause that would “allow for exclusion of companies on a case-by-case basis where there is an unacceptable risk that the company contributes to or is responsible for acts or omissions that, on an aggregate company level, are severely harmful to the climate.”

The move is an important step forward for the region, and one that could spark similar moves across the neighbouring European Union. Such movement forward is important. In a world where only the extreme position is heard, it is difficult sometimes to understand the reality of a situation. Those condemning all fossil fuels are content upon their mountain of evidence, but the reality is that we cannot simply do away with all fossil fuel generation tomorrow. On the other side, those making the call to repeal all renewable energy projects are living with their head in the sand.

The middle ground is the only feasible option moving forward, and investment behemoths like national wealth funds are often seen as leaders in these situations.

“The recommendation is that this is dealt with through active ownership and improved reporting on managing climate risk – an approach we hope will deliver meaningful results if considered alongside climate constraints,” said James Leaton, Research Director for Carbon Tracker. “We look forward to seeing how the Fund demonstrates it is diverting capital expenditure away from expanding fossil fuel use, thereby avoiding stranded assets.”

Related: Norway’s Biggest Pension Funds Manager Divesting From Coal

 
 
 
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
 

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Advertisement
 
Written By

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

Comments

You May Also Like

Cars

Plugin electric vehicles took 89.3% share of the auto market in Norway in November, down from 91.2% year on year. Full electrics (BEVs), however,...

Clean Transport

I wrote a piece earlier today about the best places in the UK to vacation with an electric car — based on the simple...

Cars

Norway’s auto market saw 86.4% plugin electric vehicle share in October, down year on year, from 89.3%. Full electrics grew share by 7.5% YoY,...

Clean Power

Norway's Statkraft has issued its annual sustainability report and finds reasons to hope that Europe will survive its latest energy crisis.

Copyright © 2022 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.