After Changing its Ways, Norway SWF Can Now Invest in Drax Group Again
Posted on 02/06/2020
Norway Government Pension Fund Global (GPFG) can now invest in Drax Group plc, according to Norges Bank. Drax Group is a British electrical power generation company. The change in permitting the SWF to invest in Drax is due to the firm cutting its usage of coal in generating electricity.
“The company has undergone significant restructuring, with a transition from coal to biomass as fuel,” Norges Bank said in a statement.
Due to a 2015 Norwegian parliament law, Norway’s GPFG cannot invest in companies that have more than 30% of their revenues from coal activities. Thus, in 2016, Drax Group was excluded from Norway’s SWF as a result of the law. Recently, the rules for Norway’s SWF grew tighter in 2019, as the wealth fund can no longer invest in companies that mine more than 20 million tonnes of coal per annum, or generate more than 10 gigawatts from coal power.