Norway’s exclusion criteria to hit coal plant developers

12 June 2019 (Last Updated June 12th, 2019 11:28)

Norway’s Government Pension Fund Global (GPFG) latest exclusion criteria is expected to affect large companies planning development of new coal power plants.

Norway’s Government Pension Fund Global (GPFG) latest exclusion criteria is expected to affect large companies planning development of new coal power plants.

The Norwegian Parliament is likely to vote in favour of the new proposal today.

According to the new standard, GPFG will ‘blacklist’ companies that operate more than 10GW of coal-fired capacity.

Environmental campaigner Urgenwald has prepared a Global Coal Exit List that includes the companies that come under the new criteria.

AGL Energy (Australia), Enel (Italy), and Uniper (Germany) are among the companies that will be sold.

Urgewald director Heffa Schuecking said: “It is great to see Norway divesting some of the biggest enemies of the Paris Climate Agreement. And we are happy that the Pension Fund has now adopted two of the three coal exclusion criteria we put forward in 2015.

“Limiting global warming to 1.5°C requires a speedy exit from all coal investments, yet the GPFG is still invested in 18 companies planning new coal power plants.

“We would like to see the Pension Fund follow the example of Norway’s biggest private investment manager Storebrand and set a date for banning all coal investments.”

The new proposed measure will also affect companies that produce more than 20 million tonnes of coal a year, or those that derive 30% of their revenues from coal or generate 30% of their power by burning coal.

The NGO estimates the volume of the new divestment action to total €5.1bn.