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Sovereign wealth funds as a new instrument of climate protection policy? A case study of Norway as a pioneer of ethical guidelines for investment policy

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  • Reiche, Danyel

Abstract

In 1990 a sovereign wealth fund was founded in Norway in which the country invests surpluses from oil and gas industry sales. The fund is designed to secure the state’s ability to act in a post-petroleum era. At the end of the 1990’s the voice of Norwegian civil society insisted that the sovereign wealth fund should not only ensure intergenerational justice, but should also contribute to the implementation of values and norms of the present country. At the end of 2004 the parliament finally agreed upon ethical regulations for the investment of the sovereign wealth fund. Now the second largest sovereign wealth fund in the world only invests in businesses that adhere to those ethical regulations. In the present paper, I seek to illustrate the emergence and outcomes of this new development in the Norwegian sovereign wealth fund.

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  • Reiche, Danyel, 2010. "Sovereign wealth funds as a new instrument of climate protection policy? A case study of Norway as a pioneer of ethical guidelines for investment policy," Energy, Elsevier, vol. 35(9), pages 3569-3577.
    • Handle: RePEc:eee:energy:v:35:y:2010:i:9:p:3569-3577
    DOI: 10.1016/j.energy.2010.04.030
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    References listed on IDEAS

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    Cited by:

    1. Joel Boudin & Jan Olsson, 2021. "Sustainability in Public Pension Funds? A Longitudinal Study of the Council on Ethics of the Swedish AP Funds," Sustainability, MDPI, vol. 13(1), pages 1-20, January.
    2. Bahoo, Salman & Alon, Ilan & Paltrinieri, Andrea, 2020. "Sovereign wealth funds: Past, present and future," International Review of Financial Analysis, Elsevier, vol. 67(C).
    3. Hachigian Heather, 2015. "Ambiguity, discretion and ethics in Norway’s sovereign wealth fund," Business and Politics, De Gruyter, vol. 17(4), pages 603-631, December.
    4. Sun, Xiaolei & Li, Jianping & Wang, Yongfeng & Clark, Woodrow W., 2014. "China's Sovereign Wealth Fund Investments in overseas energy: The energy security perspective," Energy Policy, Elsevier, vol. 65(C), pages 654-661.
    5. Dai, Liyan & Song, Chengxuan & You, Yu & Zhang, Wenqiao, 2022. "Do sovereign wealth funds value ESG engagement? Evidence from target firm's CSR performance," Finance Research Letters, Elsevier, vol. 50(C).
    6. Nguyen, Quynh Trang & Lindset, Snorre & Eriksen, Sondre Hansen & Skara, Marie, 2024. "Can an influential and responsible investor indeed be influential through responsible investments? Evidence from a $1 trillion fund," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 1120-1135.
    7. Tapan Kumar Sarker, 2015. "The role of fiscal sustainability in enhancing sustainable economic growth in South Asia: the case of Bangladesh," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 22(1), pages 143-164, June.

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