NORWAY'S RENEWABLE INVESTMENT $14 BLN

Government.no - The Government is allowing for the Government Pension Fund Global to be invested in unlisted renewable energy infrastructure under the dedicated environmental mandates. Such investments shall be subject to the same profitability and transparency requirements as the other investments of the Fund, says Siv Jensen, Minister of Finance.

The market for renewable energy is growing rapidly. A major part of the renewable energy investment opportunities is found in the unlisted market, especially in unlisted infrastructure projects. Expectations of significant investments going forward mean that this market is of interest to institutional investors such as the Government Pension Fund Global.

The Government is now allowing for the Government Pension Fund Global to be invested in unlisted renewable energy infrastructure. The investments shall be made within the scope of the special environment-related mandates only. The upper limit on such investments will be doubled, from NOK 60 to 120 billion.

Such investments will form part of the Norges Bank's active management, and will draw on the scope for deviations from the benchmark index, which is to remain unchanged. In addition, the introduction of a separate upper cap on unlisted renewable energy infrastructure investments, at 2 percent of the Fund, is proposed in order to limit risk.

– The proposed regulation will enable Norges Bank to adopt a gradual approach in a relatively small market and to invest in a cost-effective manner, says Siv Jensen, Minister of Finance.

Norges Bank has stated that it will proceed with caution and start out by considering investments with partners in developed markets, and in projects with relatively low operational and market risk.

– Allowing for unlisted renewable energy infrastructure is not a climate policy measure, but is a part of the investment strategy for the Fund. These investments shall be subject to the same profitability and transparency requirements as the other investments of the Fund. We are not stipulating that the Fund shall be invested in unlisted renewable energy infrastructure, but are enabling Norges Bank to make such investments if deemed profitable, says the Minister of Finance.

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Earlier:   

2019, March, 13, 11:15:00 NORWAY EXCLUDE OIL GOVERNMENT.NO - The Government is proposing to exclude companies classified as exploration and production companies within the energy sector from the Government Pension Fund Global to reduce the aggregate oil price risk in the Norwegian economy.

2019, March, 1, 11:25:00 NORWAY'S FUND RETURNED -6% NB - The Government Pension Fund Global returned -6.1 percent, or -485 billion kroner, in 2018.

2019, February, 20, 10:55:00 NORWAY'S RESOURCES UP NPD - The Norwegian Petroleum Directorate’s estimate for total proven and unproven petroleum resources on the Norwegian Continental Shelf is about 15.6 billion standard cubic metres of oil equivalents.

2018, November, 28, 12:00:00 NORWAY'S FUND ENDS REUTERS - Norway’s sovereign wealth fund, the world’s largest, will no longer exclude Cairn Energy Plc (CNE.L) and Kosmos Energy Ltd (KOS.N) from its portfolio of investments, the Norwegian central bank said on Tuesday.

2018, October, 26, 12:45:00 NORWAY'S FUND RETURNED 2% NORGES BANK - The Government Pension Fund Global returned 2.1 percent, or 174 billion kroner, in the third quarter of 2018.

2018, October, 17, 09:50:00 NORWAY'S DEFENCE BLOOMBERG - The wealth fund’s initial case had focused on limiting Norway’s exposure to a drop in oil prices, given its status as western Europe’s biggest petroleum producer. When the proposal was first made last year, it rocked markets, and drew responses from a number of major investors.

2018, September, 28, 09:30:00 NORWAY'S RENEWABLE INVESTMENT $1.2 BLN PLATTS - Norway's state-owned power company Statkraft is planning annual investments of around NOK10 billion ($1.2 billion, Eur1 billion) in renewable energy in the period 2019-2025, it said.