Norway is insuring itself against the oil price | Financial Times

Norway is insuring itself against the oil price | Financial Times:

Norway’s decision to divest its sovereign wealth fund from oil and gas producers has hit the headlines like a grenade. In truth, it should not have come as a surprise. More importantly, it does not set a useful precedent for environmentalists who wish to rally investors behind a broader divestment campaign as a way to reduce hydrocarbon extraction globally.

Norwegian authorities have debated this divestment since the fund itself proposed it two years ago. The news that the decision would be announced today gave away which way it would go. The smallest party in the government coalition, which has strongly recommended divestment, starts its annual conference today. Disastrous polling results meant it badly needed a political victory to boast about, which Norway’s finance minister has now duly provided.