Norway Reviews Ethical Rules for $2.3 Trillion Wealth Fund

Norway is expected to overhaul the ethical rules governing its $2.3 trillion sovereign wealth fund following the findings of a state-appointed commission. The review follows a year-long pause on ethics-based divestments, which was triggered by protests from the Trump administration after the fund divested from Caterpillar Inc. due to the company's activities in Gaza and the West Bank.

Finance Minister Jens Stoltenberg stated that the fund's high concentration in U.S. tech giants means individual divestment decisions now carry greater consequences. Potential changes include reconsidering the current ban on companies producing nuclear weapons to allow investments in major defense firms. Stoltenberg noted that the integrated nature of modern value chains makes it difficult to distinguish between civil and military products.

Civil society groups, including the Norwegian Red Cross, have warned that lifting the nuclear weapons ban would legitimize investing in weapons of mass destruction. These groups also expressed concern that the proposed changes could reduce the fund's transparency.