‘Historic breakthrough’: Norway’s giant oil fund dives into renewables

Experts say even nations that got rich on fossil fuels are seeing the future is green

A workman cleans panels at Landmead solar farm near Abingdon, England. Photograph: Peter Macdiarmid/Getty Images

Norway’s $1tn oil fund, the world’s largest sovereign wealth fund, is to plunge billions of dollars into wind and solar power projects. The decision follows Saudi Arabia’s oil fund selling off its last oil and gas assets.

Other national funds built up from oil profits are also thought to be ramping up their investments in renewables. The moves show that countries that got rich on fossil fuels are diversifying their investments and seeking future profits in the clean energy needed to combat climate change. Analysts say the investments are likely to power faster growth of green energy.

Norway’s government gave the go-ahead on Friday for its fund to invest in renewable energy projects that are not listed on stock markets. Unlisted projects make up more than two-thirds of the whole renewable infrastructure market, which is worth trillions of dollars.

Previously, it had warned that such investments could be at risk from political interference. But now the sum the fund can invest in green projects has been doubled to $14bn. “Even a fund built on oil is seeing that the future is green,” said Jan Erik Saugestad, CEO of Storebrand Asset Management.

In March, Norway’s sovereign wealth fund said it would dispose of its investments in 134 companies that explore for oil and gas, worth almost $8bn. But it is retaining stakes in oil firms such as Shell and BP that have renewable energy divisions. SOURCE

 

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