• Norway's news in English
 
app_header_v3

New Norway gov to steer oil fund to new markets

Richard Orange · 8 Oct 2013, 08:53

Published: 08 Oct 2013 08:53 GMT+02:00

"The government will establish a program of investment in the fund…aiming to invest in sustainable companies and projects in developing countries and emerging markets," the new government wrote in a 70-page political platform document published on Monday.  
 
"The government will also consider establishing a separate mandate for renewable energy." 
 
Norway's Government Pension Fund -- commonly referred to as the Oil Fund -- was launched in 1998 to channel the country's oil revenues into a vast investment fund, which is intended to provide the country with a perpetual income. 
 
The decision to change the fund's investment strategy was welcomed by Sony Kapoor, the Managing Director of the Re-Define Europe think-tank, which proposed very similar changes in a report earlier this year. 
 
“It is a signal that the limitations of the previous strategy of investing mainly in OECD countries have been recognised, and change will now go in the right direction,” he told the FT newspaper. “Change will probably be slow, but it is a first step.”
 
The new strategy closely matches the proposals of a report  issued earlier this year by the think-tank Re-Define Europe, which criticised the "sclerotic" 3.17 percent return the fund has achieved since it was launched in 1998, arguing that this was a consequence of the decision to invest in "slow-growing mature economies". 
 
Story continues below…
The Progress Party does not however appear to have won the backing of its coalition partner for its proposal to loosen the four percent rule governing how much of Norway's oil money can go on government spending. 
 
 
 

Richard Orange (richard.orange@thelocal.com)

Your comments about this article

Today's headlines
Sunday opening laws could get overhaul in Norway
Rema 1000 stores have been trying to get round the law on Sunday opening. Photo: NTB Scanpix

Norway's strict Sunday trading rules could get an overhaul, after supermarket bosses met with the government on Friday.

Catholic Church told to pay up over fake members
Bishop of Oslo Bernt Eidsvig

The Church in Oslo is accused of claiming people as members without their knowledge.

Norway helicopter crash due to technical failure
A woman lays flowers near the crash site on Turøy. Photo: Vidar Ruud / NTB scanpix

No human error in the crash that claimed 13 lives.

Philippine militants threaten hostages in video warning
Kjartan Sekkingstad at the wheel of a yacht in the marina. Photo: Holiday Oceanview Marina

Norwegian Kjartan Sekkingstad forced to plea for his life in new video.

Norway's Solheim to head UN environment agency
Erik Solheim will lead the UN Environment Programme. Photo: NTB Scanpix

Former environment minister Erik Solheim to take over top UN post.

Eurovision 2016
Norway's Eurovision hope struggles with mental 'hell'
Although she is struggling mentally, Agnete Johnsen said she is still in it to win it. Photo: Julia Nagelstad/Eurovision

21-year-old singer Agnete Johnsen has cancelled all public appearances ahead of next week's contest.

Child welfare or 'kidnapping'? Parental anguish in Norway
Foreign parents who say Barnevernet 'kidnapped' their children protested in Oslo last month. Photo:Ole Berg-Rusten / NTB Scanpix

Recent global protests have put Norway's child welfare services back squarely in the centre of controversy.

Norway to send 60 soldiers to train Syrians fighting Isis
Norwegian troops are already training Kurdish peshmerga fighters in the Iraqi Kurdistan region. Photo: Torbjørn Kjosvold/Forsvaret

Nordic nation ups its efforts in anti-Isis coalition.

No distress call in Norway helicopter crash
The pilots reportedly gave an "everything okay" update shortly before the crash. Photo: Torstein Bøe / NTB scanpix

UPDATED: The pilots in Friday’s fatal helicopter crash did not send out a distress call before the aircraft went down, indicating that there was no time to react.

Norway's oil fund to take on executive pay controversy
If the fund takes a stance on executive pay, it could be felt in corner offices around the world. Photo: Iris/Scanpix

Norway could greatly influence the global debate on CEO salaries with a change to its investment strategies.

Sponsored Article
How to launch your international career
All 13 on board die in Norway helicopter crash
National
All 13 on board die in Norway helicopter crash
Sponsored Article
What's the best way for expats to transfer money abroad?
National
Norway violated mass murderer's human rights: court
Norway to allow gay church weddings
Society
Church of Norway to allow same-sex weddings
Norway to allow gay church weddings
Society
Church of Norway to allow same-sex weddings
For first time, majority in Norway don’t believe in God
Society
For first time, majority in Norway don’t believe in God
Norway preps 'breakthrough' on gender change
Health
Norway preps 'breakthrough' on gender change
Breivik says he'll fight 'to the death' for Nazism
National
Breivik says he'll fight 'to the death' for Nazism
Sponsored Article
Retiring abroad: ensuring your health is covered
National
Memo: Norway 'not mentally prepared' for refugees' impact
Norway is the world's fourth happiest country
Society
Norway is the world's fourth happiest country
Norway moves closer to allowing dual citizenship
National
Norway moves closer to allowing dual citizenship
Sponsored Article
Why expats choose International Health Insurance
Politics
Norway's tough asylum plans face resistance
National
'Patriot' group Soldiers of Odin debut in Norway
National
Oslo is the real ‘Capital of Scandinavia’
Health
Norway ads use Hitler teddy bear to scare parents... about dust
National
Migrants: Norway 'sending us to death' in Russia
Norway under fire over tough new asylum plans
Health
Norway doctors push plan for 'tobacco-free generation'
2,110
jobs available