Norway has suspended the ethical investment rules governing its $2.1-trillion oil fund just weeks after signaling higher 2026 withdrawals, drawing a direct line between petroleum revenues and fiscal control. The Government Pension Fund Global (GPFG) move, as detailed by the Irish Times, is being described as an emergency measure to prevent forced equity sales that could shake global markets.
Parliament has approved a temporary freeze on the fund’s Ethics Council, suspending new exclusion recommendations on human-rights and environmental grounds, according to Reuters. The Finance Ministry warned that maintaining the current rules risked triggering the sale of multi-billion-dollar positions in Microsoft, Alphabet, and Amazon, which collectively represent around 15% of the GPFG’s total equity exposure.
Finance Minister Jens Stoltenberg said the suspension was necessary to protect portfolio stability and the fiscal framework that depends on it. The fund contributes roughly one-quarter of Norway’s annual budget through returns generated from oil and gas revenues managed by Equinor and the State’s Direct Financial Interest scheme, as noted by the Financial Times.
The move builds on an October plan to boost spending from the oil fund in 2026, unveiled in response to slowing offshore production and softer gas export receipts. At that time, the government said it expected to lift withdrawals above the long-standing fiscal rule of 3% of fund value, citing energy-transition projects and social spending pressures.
That announcement drew criticism from economists who warned that expanding reliance on fund income risked undermining its long-term buffer role.
Combined, the two policy shifts suggest the Fund’s attempt to stabilize returns at a time of declining offshore revenues, weaker North Sea investment, and volatile gas prices that are tightening the screw.
Lawmakers from the Labour and Green parties have questioned whether the government is prioritizing short-term portfolio performance over the fund’s founding principles of ethical accountability and intergenerational equity.
Norway’s Finance Ministry said the suspension would remain in place until a review of the Ethics Council’s framework concludes, likely in late 2026.
By Michael Kern for Oilprice.com
More Top Reads From Oilprice.com
Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you’ll always know why the market is moving before everyone else.
You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions – and we’ll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.
