6 February, 2025 – The Norwegian Oil Fund, the world’s largest sovereign wealth fund, which today publishes its responsible investment report, holds $6.15 billion in bonds in 39 oil and gas companies which are actively pursuing expansion projects incompatible with global climate goals, according to new research published today by Reclaim Finance, the Nordic Center for Sustainable Finance and four partner organizations (1). These bond holdings are despite the fund’s claims to be a climate leader. The report authors call on NBIM to make a commitment to stop purchasing new bonds from oil and gas developers.
Among the 15 companies most financed through bonds by the Norwegian Oil Fund’s asset manager, NBIM, are global majors such as TotalEnergies, Exxon Mobil, BP and Eni. These companies are developing numerous controversial new oil and gas projects and have no credible transition plan for 2030 (2). The International Energy Agency (IEA) has clearly warned that there is no room for new fossil fuel projects if the world is to stay below 1.5°C (3).
Bonds have increasingly become a critical source of financing for fossil fuel companies, accounting for 52% of their external financing (4). Conventional bonds typically come with no restrictions on how the funds are used. This means that the companies can allocate the money as they see fit—including towards new oil and gas projects.
NBIM claims to be a climate leader, but continues to exacerbate the climate crisis by buying new bonds from oil and gas developers such as TotalEnergies and BP. To show true leadership, the Oil Fund must shift its investments away from oil and gas, and that means introducing robust policies to restrict its support for oil and gas developers, including through bonds.
Fanny Schoen, analyst at Reclaim Finance
NBIM, which in January reported record profits (5) has invested in at least 20 bonds issued by oil and gas developers in the first half of 2024 alone. Nearly half of the bonds purchased by NBIM in 2024 extend beyond 2050—the global deadline for achieving net-zero emissions.
This includes US$30 million invested in a TotalEnergies’ bond in April 2024, despite the fact that TotalEnergies is the sixth largest developer of upstream oil and gas projects and plans to expand its oil and gas production by 3% annually until 2030.
Some European investors, including BNP Paribas AM, Danica Pension and the Dutch pension fund Zorg en Welzijn (PFZW) have already introduced policies restricting their financial flows to oil and gas companies.
2024 was the hottest year on record and brought with it devastating droughts, fires, floods, and heatwaves, from Los Angeles to Brazil to Zambia. To stay below 1.5°C and avoid the worst impacts of the climate crisis, there’s no room for any new fossil fuel projects. This is a risky investment for our climate and for Norwegian people’s savings. Every dollar invested in oil and gas developers risks delaying the green transition and could also end up invested in stranded assets. We urge NBIM to listen to our recommendations and deny new debt to oil and gas developers.
Dina Rui, Senior Advisor, Nordic Center for Sustainable Finance
