World’s largest sovereign wealth fund will invest in renewables
Source: Trillion Fund / Words: Rebecca Cooke
The largest sovereign wealth fund in the world has pledged to invest more in renewable energy technology.
Erna Solberg, Norway's Prime Minister has said that the Norwegian sovereign wealth fund would be increasing its investment in clean energy as part of a move to combat climate change using its immense capital.
The move could have a global impact on the energy industry. The decision means that a renewable energy investment mandate will be created. The full details of the investment will be announced on April 4 by Norway's Finance Minister.
The fund currently has 9 per cent of its holdings in the traditional coal, oil and gas industries and owns the equivalent of 1 per cent of the world's stocks. However the move to invest more in renewables signifies a move towards divestment from fossil fuels and could resonate throughout the global investment community.
The move towards divestment could be a reaction to pressure from campaign groups to prioritise renewable energy over fossil fuels. The World Wildlife Fund has headed up a campaign calling for financial institutions and funds to take the ethical impacts of their investments into account and plough more funding into clean energy.
In response to the news, Nina Jensen, CEO of WWF-Norway, said: “If done at scale this will have global impact and redefine how we use money consistently with commitments to limit climate change. The pension fund is the largest state investor in the world. A solid renewable energy mandate will send a tremendously powerful signal and set the standard for other international investors.”
The news comes weeks after an alliance of 17 major funds pledged to divest $2 billion from fossil fuels and re-invest into clean energy. The divestment movement has been gathering traction in recent months and this latest decision by Norway's sovereign wealth fund is expected to encourage other financial institutions to follow suit.
Like this content? Then follow us on Twitter or register for a FREE ticket for the Eco Technology Show on the 26th – 27th June, The Brighton Centre by clicking here.