Norway’s election campaign has been dominated by a heated debate over investments in Israel, particularly those made by the country’s $2 trillion sovereign wealth fund. The controversy could influence which party forms the next government, with polls showing a tight race ahead of the September 8 election.

Political Stakes and Divestment Demands

Right-wing parties (Conservatives, Progress Party, Liberals, Christian Democrats) are projected to win 85 seats—just enough for a parliamentary majority.
The Socialist Left has demanded that the Labour Party divest from companies linked to “Israel’s illegal warfare in Gaza” as a condition for post-election support.
Labour has rejected the demand, but pressure may increase after the election.

Crisis at the Sovereign Wealth Fund

CEO Nicolai Tangen described the situation as his “worst ever crisis,” emphasizing the importance of public trust.
Tangen has ruled out resignation, stating he followed the fund’s parliamentary mandate.
Since June 30, the fund has divested from 23 Israeli companies, compared to just two during the previous conflict.
As of August 14, it held stakes in 38 Israeli firms worth 19 billion crowns ($1.85 billion), spanning banking, tech, consumer goods, and industrials.
Finance Minister Jens Stoltenberg indicated more divestments are likely.

Ethical and Political Tensions

Critics argue that investing in companies active in occupied Palestinian territories violates international law.
Supporters of divestment say the fund’s ethics process is too slow; opponents stress the importance of impartiality and due process.
The fund’s low-profile operations are under strain due to increased scrutiny.

Institutional Concerns and Internal Debate

The fund invests oil and gas revenues abroad to avoid overheating Norway’s economy.
It is invested in nearly 9,000 companies globally.
Internal meeting minutes from December 6 reveal concerns about politicizing investments, especially in state-owned companies in authoritarian regimes.
Norges Bank Investment Management (NBIM), the Council on Ethics, and the finance ministry discussed balancing ethical standards with diplomatic sensitivity.

Public Criticism and Oversight

Finance Minister Stoltenberg faced sharp criticism from the Standing Committee on Scrutiny and Constitutional Affairs for evasive responses.
Committee head Peter Froelich called his reply “the most arrogant response” in four years.

Historical Context and Ethical Guidelines

Ethical guidelines were introduced in 2004 and prohibit investments in companies involved in serious human rights violations.
Former finance minister Kristin Halvorsen emphasized public trust in ethical management.
Conservative leader Erna Solberg reiterated the importance of keeping investments free from political influence.

Stoltenberg’s Defense

At a town hall in Arendal, Stoltenberg acknowledged ongoing challenges.
He praised Norway’s success in saving resource revenues and using only the financial returns over the past 30 years.