SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
About six percent of Norway's sovereign wealth fund is invested in oil and gas companies--but the countries central bank advised that all those shares be dumped, amid falling oil prices and expectations of a dim future for fossil fuels. (Photo: Guy Beauchamp/Flickr/cc)
'Biggest Pile of Money on the Planet' To Dump Fossil Fuels Holdings
In 'astonishing' move, Norwegian government advised to divest its sovereign wealth fund of all its shares in oil and gas industry
Nov 16, 2017
Environmental advocates on Thursday applauded the latest organization to shift away from continued support of the fossil fuel industry--Norway's national bank.
In a move 350.org co-founder Bill McKibben called "astonishing," Norges Bank, which oversees the world's largest sovereign wealth fund, advised the Norwegian government to dump all of its shares in oil and gas companies, leaving those entities out of its $1 trillion fund.
The bank's decision comes two years after Norway's parliament approved a measure calling for the fund to begin divesting from coal companies.
Norges Bank made the new recommendation in light of falling oil prices. Oil and gas are seen as increasingly risky investments as more countries turn to cleaner energy sources in order to meet requirements under the Paris climate agreement, which aims to keep global warming under two degrees Celsius above pre-industrial levels.
While Norway has built much of its sovereign wealth through oil and gas development in the past--six percent of the fund is invested in fossil fuels--it's now home to a fast-growing solar power sector, with solar installations rising by 366 percent from 2015 to 2016.
"It is not surprising that we see the world's largest sovereign wealth fund managers no longer prepared to take the increasing risk associated with oil and gas assets, which do not have a long-term future," said Paul Fisher of the Cambridge Institute for Sustainability Leadership, in an interview with the Guardian.
McKibben compared the bank's recommendation to "the moment when the Rockefellers divested the world's oldest oil fortune" in 2014, when the heirs to Standard Oil said that if founder John D. Rockefeller were alive in the 21st century, "he would be moving out of fossil fuels and investing in clean, renewable energy."
"This is the biggest pile of money on the planet, most of it derived from oil--but that hasn't blinded its owners to the realities of the world we now inhabit," said McKibben.
Nicolo Wojewoda of 350.org Europe was also hopeful about the implications of Norges Bank's decision, calling it "yet another nail in the coffin of the coal, oil, and gas industry."
"To stop climate catastrophe, fossil fuels need to stay in the ground. Investing in them is no longer financially sound, nor morally acceptable, and this proposal is a clear recognition of that," Wojewoda added.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
Environmental advocates on Thursday applauded the latest organization to shift away from continued support of the fossil fuel industry--Norway's national bank.
In a move 350.org co-founder Bill McKibben called "astonishing," Norges Bank, which oversees the world's largest sovereign wealth fund, advised the Norwegian government to dump all of its shares in oil and gas companies, leaving those entities out of its $1 trillion fund.
The bank's decision comes two years after Norway's parliament approved a measure calling for the fund to begin divesting from coal companies.
Norges Bank made the new recommendation in light of falling oil prices. Oil and gas are seen as increasingly risky investments as more countries turn to cleaner energy sources in order to meet requirements under the Paris climate agreement, which aims to keep global warming under two degrees Celsius above pre-industrial levels.
While Norway has built much of its sovereign wealth through oil and gas development in the past--six percent of the fund is invested in fossil fuels--it's now home to a fast-growing solar power sector, with solar installations rising by 366 percent from 2015 to 2016.
"It is not surprising that we see the world's largest sovereign wealth fund managers no longer prepared to take the increasing risk associated with oil and gas assets, which do not have a long-term future," said Paul Fisher of the Cambridge Institute for Sustainability Leadership, in an interview with the Guardian.
McKibben compared the bank's recommendation to "the moment when the Rockefellers divested the world's oldest oil fortune" in 2014, when the heirs to Standard Oil said that if founder John D. Rockefeller were alive in the 21st century, "he would be moving out of fossil fuels and investing in clean, renewable energy."
"This is the biggest pile of money on the planet, most of it derived from oil--but that hasn't blinded its owners to the realities of the world we now inhabit," said McKibben.
Nicolo Wojewoda of 350.org Europe was also hopeful about the implications of Norges Bank's decision, calling it "yet another nail in the coffin of the coal, oil, and gas industry."
"To stop climate catastrophe, fossil fuels need to stay in the ground. Investing in them is no longer financially sound, nor morally acceptable, and this proposal is a clear recognition of that," Wojewoda added.
Environmental advocates on Thursday applauded the latest organization to shift away from continued support of the fossil fuel industry--Norway's national bank.
In a move 350.org co-founder Bill McKibben called "astonishing," Norges Bank, which oversees the world's largest sovereign wealth fund, advised the Norwegian government to dump all of its shares in oil and gas companies, leaving those entities out of its $1 trillion fund.
The bank's decision comes two years after Norway's parliament approved a measure calling for the fund to begin divesting from coal companies.
Norges Bank made the new recommendation in light of falling oil prices. Oil and gas are seen as increasingly risky investments as more countries turn to cleaner energy sources in order to meet requirements under the Paris climate agreement, which aims to keep global warming under two degrees Celsius above pre-industrial levels.
While Norway has built much of its sovereign wealth through oil and gas development in the past--six percent of the fund is invested in fossil fuels--it's now home to a fast-growing solar power sector, with solar installations rising by 366 percent from 2015 to 2016.
"It is not surprising that we see the world's largest sovereign wealth fund managers no longer prepared to take the increasing risk associated with oil and gas assets, which do not have a long-term future," said Paul Fisher of the Cambridge Institute for Sustainability Leadership, in an interview with the Guardian.
McKibben compared the bank's recommendation to "the moment when the Rockefellers divested the world's oldest oil fortune" in 2014, when the heirs to Standard Oil said that if founder John D. Rockefeller were alive in the 21st century, "he would be moving out of fossil fuels and investing in clean, renewable energy."
"This is the biggest pile of money on the planet, most of it derived from oil--but that hasn't blinded its owners to the realities of the world we now inhabit," said McKibben.
Nicolo Wojewoda of 350.org Europe was also hopeful about the implications of Norges Bank's decision, calling it "yet another nail in the coffin of the coal, oil, and gas industry."
"To stop climate catastrophe, fossil fuels need to stay in the ground. Investing in them is no longer financially sound, nor morally acceptable, and this proposal is a clear recognition of that," Wojewoda added.
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.