Norwegian fund may have to sell $ 1 billion from Glencore coal

OSLO (Reuters) – The $ 1 billion Norwegian sovereign fund may have to sell its $ 1 billion stake in commodities giant Glencore, among other companies generating more than 30 percent of its revenue from to comply with the more stringent ethical investment rules.

As part of the center-right government plan, which is expected to be adopted by the Norwegian parliament on Wednesday, the largest fund in the world would invest more in companies that extract more than 20 million tonnes of coal per year or generate more than 10 gigawatts (GW) of energy with coal.

Environmental advocates, Greenpeace and Urgenwald, said the new guidelines imply that the fund should dispose of its holdings in Glencore, in which the fund holds a 2.03% stake, with a value of US $ 1.25 billion. Billion at the end of 2018, according to the fund's data.

The fund is also expected to sell its 2.16% stake in the $ 620 million Anglo American mining company, they added, citing their own badysis.

The fund, Glencore and Anglo American all declined to comment.

"What it does … makes it clear to governments and businesses that the time for fossil fuel financing is nearing its end, in the interest of people and the planet," said Martin Norman, Greenpeace Sustainable Finance Officer. in Norway.

Other disinvestments include 1.39% stake in German RWE for $ 186 million, 2.22% stake in Australian South Australia32 for $ 266 million, and participation of 1.03% of the German group Uniper among others, said environmentalists.

The proposed rules on investing in coal, fitting in as part of a broader transition to renewable energy, led the fund to divest its stakes in 83 companies primarily producing coal. , such as Peabody Energy and Coal India, as well as producers ranging from Portland General Electric to Korea Electric Power.

The first major fund to have done the same, the decision made in 2015 has prompted other long-term investors to establish similar guidelines, including the German insurer Allianz later in the year.

Parliament should support this project as the ruling center-right ruling coalition is in the majority.

Uniper said its global production capacity was less than a third of coal, adding that it wanted to use more low-carbon fuels and had already reduced its carbon dioxide emissions by some 20% since 2016.

"We see ourselves as partners in the energy transition and want to support it constructively," said a spokeswoman for Uniper.

RWE said its transformation plan was to not build new coal-fired power plants and that it would invest up to 1.5 billion euros a year in new energy projects. renewable once its transaction with EON completed.

"By the end of 2019, more than 60% of RWE's plants will be able to provide electricity with little or no CO2 emissions," said a spokeswoman.

South32 declined to comment, while BHP Billiton and Enel were not immediately available for comment.