Norway's sovereign wealth fund should invest in major defence groups, commission concludes
XLI•A government-appointed commission recommended allowing Norway's $2.3 trillion sovereign wealth fund to invest in major Western defence companies currently excluded over nuclear weapons production. If adopted, the change could open the door to tens of billions of dollars in investments.
1. Proposed investment rule change
The commission recommended an exemption for companies domiciled in a nuclear-weapon state under the Non-Proliferation Treaty and allied with NATO-member Norway. It said several European and U.S. companies that produce components for nuclear weapons could be reincluded. The government and parliament would need to adopt the change.
2. Ethics review and next steps
The proposal is part of an overhaul of the fund's ethics rules, requested by Finance Minister Jens Stoltenberg in light of changes to global security and Norway's reliance on NATO's nuclear umbrella. The commission also proposed changing the Council on Ethics' operations so its reports would no longer automatically be made public. The proposals will inform a government white paper expected in spring 2027.
3. Opposition to the proposal
Norway's parliament paused ethics-based divestments last year pending the review. Civil society groups, including the Norwegian Red Cross, oppose changing the nuclear investment ban, saying it would legitimise investment in weapons of mass destruction.
