Norway’s sovereign wealth fund could be allowed to invest in companies involved in producing nuclear weapons under a proposed revision of its ethical rules. The recommendation would reverse a long-standing restriction and potentially return major British, French and American defence firms to the fund’s investment universe.
The proposal was published on 15 October 2026 by a government-appointed commission reviewing the rules governing the world’s largest sovereign wealth fund. It is not yet a final decision: the recommendations will go through public consultation before the Norwegian government presents its assessment to parliament.
What the proposal would change
Norway’s Government Pension Fund Global, commonly known as the oil fund, currently excludes 14 companies because they develop or manufacture nuclear weapons or related components. The list includes Airbus, BAE Systems, Boeing, Lockheed Martin and Safran.
Under the proposed exemption, the fund could invest in nuclear-weapons companies if they meet two conditions:
- They are based in a state recognised as a nuclear-weapons state under the Treaty on the Non-Proliferation of Nuclear Weapons.
- That country is also a NATO ally of Norway.
The change could bring several defence manufacturers from the United Kingdom, France and the United States back into the portfolio. The commission said other exclusions would remain in place, including restrictions involving biological and chemical weapons, landmines and cluster munitions.
Why Norway is reviewing its investment rules
The review reflects a changing European security environment. Norway’s government ordered the examination of the fund’s ethical guidelines in November 2025, as Russia’s war against Ukraine and wider concerns about nuclear deterrence have placed defence policy at the centre of political debate.
The commission was chaired by former Norwegian central bank governor Svein Gjedrem. Presenting the 434-page report, Gjedrem said the proposed approach could allow the fund to invest in companies that contribute to the security of Norway and its allies.
Finance Minister Jens Stoltenberg highlighted what he described as a contradiction in the existing system: the fund cannot invest in companies that may be considered important to Norway’s security. The government’s review also reflects concerns about Russia’s nuclear rhetoric and China’s expanding nuclear capabilities.
How large is Norway’s sovereign wealth fund?
The fund has assets worth more than €2 trillion and holds investments in more than 7,000 companies worldwide. It owns approximately 1.5% of all listed shares globally, meaning changes to its ethical rules can have significance well beyond Norway.
Although the proposal concerns Norwegian investment policy rather than an EU decision, it is relevant to wider European affairs. Several affected companies operate across European defence and aerospace supply chains, while the debate touches on the relationship between responsible investment, national security and rearmament.
Changes proposed for the Council on Ethics
The commission also recommended altering the role of Norway’s Council on Ethics, an independent body that advises the central bank, Norges Bank, which manages the fund.
The council would continue assessing whether companies face a serious risk of breaching the fund’s ethical standards. However, it would no longer be able to directly recommend that companies be excluded from the portfolio. That power has already been suspended while the review takes place.
The proposed change would give the government and the fund’s management a different role in deciding how ethical concerns should affect investment decisions.
What happens next?
The recommendations are subject to a public consultation running until 15 January. After considering submissions, the Norwegian government is expected to present its position to parliament in spring 2027.
Until parliament considers the matter and any new rules are adopted, the existing exclusion of nuclear-weapons manufacturers remains in place. The commission’s report therefore marks the beginning of a policy process, not an immediate change to the fund’s holdings.
The proposal has already drawn criticism from some political parties, particularly on the left. A Green Party official described the recommendation as “utterly senseless”, signalling that the issue could lead to a wider debate about Norway’s ethical investment model and its defence policy.
Why the decision matters beyond Norway
The debate illustrates the pressure facing public funds that were created with strict ethical standards but now operate in a more contested security environment. Allowing investment in nuclear-arms producers could expand the fund’s access to major defence companies, while opponents argue that it would weaken Norway’s commitment to humanitarian and non-proliferation principles.
The immediate question is procedural: whether the Norwegian government and parliament will accept the proposed exemption. The broader issue is how European countries balance defence requirements, alliance commitments and responsible investment.
Conclusion
Norway’s sovereign wealth fund is not yet permitted to invest in nuclear-weapons manufacturers under the proposal. The commission has recommended a narrowly defined exemption for companies in recognised nuclear-weapons states that are also NATO allies, but public consultation and parliamentary consideration must come first. The outcome could reshape one of the world’s most influential ethical investment frameworks and provide an important test of how European governments respond to changing security conditions.
