Norway's government has reached a deal with conservative parties to suspend the Oil Fund's ethics council. The agreement prevents the council from proposing company exclusions from the massive wealth fund.
Finance Minister Jens Stoltenberg confirmed the ethics guidelines will not be part of budget negotiations. He stated the government will not enter agreements conflicting with yesterday's parliamentary decision.
During Wednesday's question time in Parliament, opposition leader Sylvi Listhaug challenged Stoltenberg for guarantees. She wanted assurance the Oil Fund would not become subject to budget talks.
Stoltenberg provided clear confirmation. Listhaug responded by saying they would take that guarantee with them.
The reality is that the Ethics Council's work is now on hold. It cannot recommend excluding companies from the fund's portfolio. This pause will continue until new ethical guidelines are established.
What is Norway's Oil Fund? Officially called the Government Pension Fund Global, it's the world's largest sovereign wealth fund. Valued at over $1.4 trillion, it invests Norway's oil and gas revenues abroad. The fund follows ethical guidelines set by the Finance Ministry.
The Ethics Council is an independent body that assesses whether companies violate these guidelines. It examines human rights violations, environmental damage, and corruption risks.
This political move essentially neuters the council's main function during the transition period. The government and conservative parties argue this creates stability while new rules are developed.
Critics from the Socialist Left party expressed outrage at the collaboration between Labor and conservative parties. They see this as weakening the fund's ethical oversight mechanisms.
The suspension means controversial companies currently under review may remain in the fund's investments longer. Previous exclusions have included companies involved in coal production, weapons manufacturing, and human rights abuses.