Norway’s sovereign wealth fund will soon have to offload a significant portion of its investment in companies that mine coal or use it as a major source of energy if a new ethical investing law is passed by the Norwegian Parliament on 12th June.
The new laws are the result of persistent campaigns by leading environmental groups Greenpeace and Urgenwald, which have pushed the government to adopt ethical investing principles for its investment fund.
With over $1 trillion in assets under management, the fund is the largest of its kind in the world. Campaigners at Greenpeace hailed the development, saying that it is a signal to both corporations and governments across the world to stop funding fossil fuel projects.
The plan, which came into effect in 2015, also led Germany’s Allianz to adopt sustainable investing principles and divest from similar investments even as a few long-term investors also implemented similar measures in their funds.
However, this is just the first step in the journey towards the global adoption of green energy as the majority of the world’s population still relies exclusively on fossil fuels for their energy needs.