Norway wealth fund urged to ease nuclear arms ban after Gaza investment row

What the report says

A government-appointed committee in Norway has recommended loosening ethical limits on the country’s sovereign wealth fund, including rules that currently restrict investment in companies linked to nuclear weapons and other sensitive issues. According to Al Jazeera, the review was submitted to the Ministry of Finance and would give the fund’s manager, the central bank, more discretion in handling ethical risks.

The fund, which oversees nearly $2.3 trillion in assets, has faced controversy after divesting last year from U.S. construction firm Caterpillar over concerns tied to Israel’s conduct in Gaza and the occupied West Bank. The report said matters involving another state’s conduct should be left to Norway’s ordinary diplomatic channels rather than the fund’s investment decisions.

Led by former central bank governor Svein Gjedrem, the committee also urged a reassessment of the fund’s ban on nuclear-weapons-related investments. It argued that, given Norway’s security environment and dependence on NATO’s nuclear deterrent, the fund should be able to invest in companies in the U.S., U.K. and France that contribute to nuclear weapons production.

The proposals have already drawn criticism in Norway, with opposition politicians warning against weakening ethics rules. Some analysts told Al Jazeera that any move by such a prominent fund could influence other global investors. More broadly, the debate reflects growing tension between ethical investment standards and national security concerns.