Norway Pauses Ethical Divestments Amid Global Scrutiny

Norway's sovereign wealth fund, valued at $2.1 trillion and labeled the world's largest, faces a halt in ethical divestments following a parliamentary vote. This decision, backed by the minority Labour government, seeks to allow time for updates to the fund's ethical guidelines.

Recent controversies, particularly involving divestment from Caterpillar due to its products' use by Israeli authorities, drew criticism from the U.S. State Department. Norway's Finance Minister Jens Stoltenberg underscored the necessity to reassess the fund's ethical rules, first instituted in 2004, to align with today's global landscape.

The divestment pause reflects broader debates within parliament, with some parties questioning the speed of this decision, given its implications. Meanwhile, the government's stance is seen as a protective measure for a fund that finances a significant portion of public spending and relies heavily on major global companies.