Norway proposes to allow state fund to invest in arms manufacturers

Norway has proposed allowing the state pension fund (GPFG) to invest in major Western defense companies involved in the production of nuclear weapons. This proposal was made by a government commission. The proposed change must be approved by the Norwegian government and parliament.

Norway’s state pension fund is the world’s largest sovereign wealth fund with assets of about $2.3 trillion. Under current fund rules, it cannot invest in Airbus (AIR), Boeing (BA), BAE Systems (BAES), Lockheed Martin (LMT) and a number of other companies because they are involved in the production of nuclear weapons.

The proposed new rules provide for an exemption for companies registered in countries with nuclear weapons under the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) and are allies of Norway, a NATO member.

"Thus, several European and American companies producing components for nuclear weapons could be re-listed," the commission's proposal said.

Norway’s Finance Minister Jens Stoltenberg, former Secretary General of NATO, has asked the commission to review the ethics of investing assets of the Norwegian State Pension Fund, citing changes in the global security environment.

“In essence, it was the nuclear weapons ban that prevented us from cooperating with certain companies that are otherwise important to Norway’s security,” Stoltenberg said.

Civil society groups, including the Norwegian Red Cross, said it would legitimize investments in weapons of mass destruction. "The way Norway invests significant amounts contributes to the formation of standards around the world," the Red Cross said in a statement sent to the commission.

Recommendations on changes to the fund's investment rules will be put to public debate, after which the Norwegian government plans to submit its proposal to parliament as an official document next year.

Last year, Norway's State Pension Fund refused to comply with ethical standards due to disagreements that arose after a recommendation to sell shares to the American company Caterpillar. Then the Ethics Board of the Norwegian Pension Fund (an independent body appointed by the government) demanded that the GPFG fund sell shares in the American construction equipment company Caterpillar, because its bulldozers were used in the war in the Gaza Strip. The fund's decision to sell Caterpillar shares on ethical grounds has sparked a backlash in the US. Ethical rules could have caused the fund to have to sell up to $230 billion worth of tech stocks.

The fund, managed by the investment arm of the Central Bank of Norway and created from the country's oil and gas revenues, owns almost 1.5% of all public companies in the world. Shares of various companies account for more than two-thirds of the fund's portfolio. The largest stakes in NVIDIA, Apple, Alphabet and Microsoft. The fund’s portfolio also includes government and corporate bonds, real estate and renewable energy infrastructure.

In the first half of 2026, the fund reported a record profit of more than 1.75 trillion crowns (about $ 184 billion). Yields were 9.4 percent, driven by gains in technology stocks in Asia.

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