A government-appointed committee in Norway has recommended that the country’s sovereign wealth fund ease its ethical investment restrictions, including those related to nuclear weapons and the ongoing conflict in Gaza. The world’s largest sovereign wealth fund, with assets totaling nearly $2.3 trillion, has faced scrutiny over its disinvestment from U.S. construction giant Caterpillar last year, citing the company’s alleged involvement in human rights violations during Israel’s war on Gaza.
The committee, led by former Central Bank Governor Svein Gjedrem, argued that the fund should refrain from making decisions about other states’ conduct, leaving such matters to diplomatic channels. The report also proposed allowing investments in companies involved in nuclear weapons production, particularly those based in the U.S., U.K., and France, citing Norway’s reliance on NATO’s nuclear deterrent and a deteriorating global security environment.
The recommendations have sparked backlash in Norway, with opposition politicians criticizing the potential changes. Analysts warn that altering the fund’s ethical stance could set a precedent for other global investors, potentially encouraging broader investment in nuclear weapons-related companies. The committee framed the proposal as necessary to protect Norway’s national security, given its dependence on allied nuclear capabilities.
Amid U.S. President Donald Trump’s restructuring of NATO, European countries are exploring France’s nuclear deterrent umbrella. Meanwhile, Trump has announced talks with Russia and China aimed at denuclearizing the countries with the largest nuclear arsenals. However, critics caution that easing investment restrictions could lead to unintended consequences beyond Norway’s intended scope.