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Norway confirms major divestment from coal

world Updated: Jun 05, 2015 21:07 IST
Norway

File-photo-of-The-Singareni-Collieries-Company-Limited-SCCL-at-Godavarikhani

Norway's Parliament has formally endorsed a move to exclude coal companies from the country's $900 bn oil fund because of their impact on climate change. Friday's decision was expected after a parliamentary committee last week unanimously recommended dropping coal investments.

The new guidelines, which will take effect by Jan. 1, 2016, call on fund managers to exclude mining or power companies that depend on coal for at least 30 percent of their activities or revenues.

Greenpeace and other environmental groups advocating divestment from fossil fuels celebrated the move as a critical step. They estimated the decision could affect investments of $8.6 bn in 122 companies.

Norway deposits surplus wealth from its oil and gas sector in the sovereign wealth fund as a buffer for when its offshore wells run dry.