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The Case for Divesting Coal from the Norwegian Government Pension Fund Global

The Case for Divesting Coal from the Norwegian Government Pension Fund Global !

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May 2015

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1 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

Executive Summary!

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2 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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3 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

I. Divestment Decisions Taken by GPFG To Date

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 http://www.nbim.no/globalassets/reports/2014/2014-responsible-investment.pdf, p. 71-72 2 The figures used here are from: http://www.nbim.no/globalassets/reports/2014/2014-responsible-investment.pdf . , p. 71-72.

This Norges Bank document does not easily crosswalk with another public disclosure by the Fund http://www.norges-bank.no/pages/103220/040515_charts.pdf. In addition, Urgewald has developed a database based on publicly available fund

Islands, Canada, China, India, New Zealand, Poland, South Africa, United Kingdom and United States. The equities in this universe of divestments are valued at NOK 3 billion (US$504 million).

"!!#$$!%&&$'()*!+,!!4 See Annex I: The Mandate of the Expert Group,

https://www.regjeringen.no/contentassets/d1d5b995b88e4b3281b4cc027b80f64b/expertgroup_report.pdf

4 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!5 https://www.regjeringen.no/en/whatsnew/Ministries/fin/press-releases/2014/Report-from-the-Expert-Group-on-investments-in-

coal-and-petroleum-companies1/Press-release-from-the-Expert-Group-on-the-Norwegian-Government-Pension-Fund-Globals-investments-in-coal-and-petroleum-companies/id2342792/

5 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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

$70#YH80/2#I/%>8#2%%=#(9#+29#&()?(20#F%27#2%#(99099#270#/+9=#2%#270#3+)()109#%3#270#I@4I#3/%&#+29#0H8%9>/0#2%#1(/F%)-#()?# +)#1%(,#()?#802/%,0>&#1%&8()+09G Q##

L)#W8/+,#NOPS-#270#<%60/)&0)2#/0,0(90?#(#:7+20#8(80/#/06+0:+)<#270#&()(<0&0)2#%3#270#I@4IG##$70#:7+20#8(80/#+)1,>?0?#(#9>&&(/"#%3#270#YH80/2#I?01+9+%)9#+)#1%(,-#()?#,(/<0,"#1%)1>//0?#:+27#270&G##$70#:7+20#8(80/#+9#F03%/0#270#'2%/2+)<02G#$70#'2%/2+)<02#/098%)90#2%#270#:7+20#8(80/#+9#0H80120?#+)#b>)0#NOPSG##

$7090#?+91>99+%)9#2(=0#8,(10#(9#8(/2#%3#()#%)<%+)<#8>F,+1#?+91>99+%)#%)#270#92/>12>/0#()?#+)6092&0)2#92",0#%3#270#4>)?G_#$70#I@4I-#%)0#%3#270#,(/<092#'%60/0+<)#3>)?9#%3#+29#=+)?#+)#270#:%/,?#(2#;5^#QOOO#F+,,+%)#A`U'#_SO#F+,,+%)B#7(9#9060/(,#>)+K>0#30(2>/09-#+)1,>?+)<#+29#3>)?+)<#9%>/10#3/%&#%+,#()?#<(9#?/+,,+)<#/060)>09#()?#270#)(2>/0#%3#+29#<%60/)()10#1%&F+)+)<#F%27#8%,+2+1(,#()?#8/%3099+%)(,#+)6092&0)2#+)20/0929G#$70#4>)?#/0,+09#8/+)1+8(,,"#%)#(#902#%3#F0)17&(/=#+)?0H09#3%/#+29#+)6092&0)2#92/(20<"#:7+17#1%)9+929#%3#TOR#0K>+2+09#()?#DOR#F%)?9GE#$70#4>)?#

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!6 https://www.regjeringen.no/contentassets/d1d5b995b88e4b3281b4cc027b80f64b/expertgroup_report.pdf, p.8. 7 https://www.regjeringen.no/contentassets/d1d5b995b88e4b3281b4cc027b80f64b/expertgroup_report.pdf, p. 8 8 http://www.ft.com/intl/cms/s/0/b6e0e756-e87c-11e1-8397-00144feab49a.html#axzz3ZnELZfGo 9 http://www.nbim.no/en/the-fund/governance-model/management-mandate/#Chapter1, Section 1.4.2.

6 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

+)60929#>8#2%#SR#+)#/0(,#092(20#(9#8(/2#%3#270#F%)?#(,,%1(2+%)GPO#$70#+)6092&0)2#F0,+039#%3#270#4>)?#(/0#3>/270/#(&8,+3+0?#:+27#9801+3+1#/0,(2+%)#2%#270#1%(,#+99>0#+)#270#YH80/2#I/%>8#/08%/2G11

#

II. Overview: Nature of Global Coal Risk in Mining and Burning

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http://www.nbim.no/en/the-fund/governance-model/management-mandate/#Chapter1, Section 3.5.7. 11 https://www.regjeringen.no/contentassets/d1d5b995b88e4b3281b4cc027b80f64b/expertgroup_report.pdf, p. 11-13. 12 For a complete discussion of global coal markets and the variations on these risk themes around the world see:

http://www.carbontracker.org/wp-content/uploads/2014/09/Coal-Demand-IEEFA.pdf. In September 2014 the Carbon Tracker Institute and IEEFA released a country by country review of the global coal trade. Much of the material for this part of the

13 For a discussion of the nature and impact of public mobilizations and their impact on energy investments see:

http://www.ieefa.org/wp-content/uploads/2014/10/IEEFA.OCI_.Material-Risks.compressed.pdf, p. 7. For a more detailed discussion of other organized opposition to coal see: https://maryland.sierraclub.org/newsletter/grassroots-opposition-coal-international

14 Hot Flat and Crowded, (New York: Farrar, Strauss and Grioux), p.247-248. 15 For example, Kurt Oehlberg, Managing Director, FBR, U.S. Coal Investment Strategy, Coaltrans USA, February 7, 2014, Slide

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The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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#

#

III. The Financial Case for Broader Divestment from Coal Mining and Coal-Burning Companies

A. The Case for Broader Divestment from Coal-Mining Companies

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!16 The International Energy Agency provides an annual long term outlook for thermal coal use. They present this using three

stical perspective on the long-term outlook on the thermal coal market see: http://www.carbontracker.org/wp-content/uploads/2014/09/Coal-Demand-IEEFA-complete.pdf, p. 7. For more detail on the comparative scenarios offered by BP, Exxon, Shell and the United States Energy Information Administration as well as a number of prominent coal consultants see p.13-15 of the report.

8 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!17 http://www.fossil.energy.gov/programs/gasregulation/authorizations/2013_applications/sierra_club_13-69_venture/Ex._110_-

_Bernstein_peak_coal_report.pdf 18http://www.indexmundi.com/commodities/?commodity=coal-australian&months=60 19 https://ir.citi.com/z5yk080HEXZtoIax1EnHssv%2Bzm4Pc8GALpLbF2Ysb%2Fl21vGjprPCVQ%3D%3D, 20 http://pg.jrj.com.cn/acc/Res/CN_RES/INDUS/2014/6/29/37603388-1ecd-419e-8cbd-bd7d51fc5902.pdf 21 http://www.businessgreen.com/digital_assets/8779/hsbc_Stranded_assets_what_next.pdf 22 http://www.eenews.net/assets/2015/02/13/document_cw_01.pdf 23 http://www.reuters.com/article/2013/05/09/energy-coal-idUSL6N0DQ0UU20130509 24 http://www.fossil.energy.gov/programs/gasregulation/authorizations/2013_applications/sierra_club_13-69_venture/Ex._110_-

_Bernstein_peak_coal_report.pdf 25 http://www.ieefa.org/wp-content/uploads/2014/10/IEEFA-briefing-Galilee-Financiers.pdf 26 http://blog.seattlepi.com/seattlepolitics/2014/01/08/goldman-sachs-bails-out-on-coal-port-builder/ 27 http://www.marketplace.org/topics/economy/goldman-downsizes-its-commodities-operations 28 http://ieefa.org/global-energy-markets/ 29 http://www.business-standard.com/article/specials/horror-and-its-layers-114060601215_1.html

9 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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The Global Thermal Coal Market, by the Numbers $70#2%2(,#90(F%/)0#<,%F(,#1%(,#2/(?0#A+)1,>?+)<#(,,#2"809#%3#1%(,B#+)#NOP[#:(9#PG[#F+,,+%)#2%)9#80/#"0(/G#$:%#1%>)2/+09 L)?%)09+(#()?#W>92/(,+( ##

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!30

http://www.carbontracker.org/wp-content/uploads/2014/09/CTI-Coal-report-Sept-2014-WEB1.pdf 31 http://www.businessinsider.com.au/heres-what-the-bhp-spinoff-south32-will-look-like-including-its-dividend-policy-2015-3

10 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!32 http://www.industry.gov.au/industry/Office-of-the-Chief-Economist/Publications/Documents/req/REQ-March15.pdf 33 Bernstein Research, , Cover Page, June 2013.

(Bernstein) 34 Rohan Somwanshi, Global seaborne coal exports to decline in 2015, but not enough to rebalance markets, SNL Energy,

March 27, 2015 35 http://in.reuters.com/article/2014/11/12/india-coal-imports-idINKCN0IW0FJ20141112 36 http://www.industry.gov.au/industry/Office-of-the-Chief-Economist/Publications/Documents/req/REQ-March15.pdf 37 http://www.ieefa.org/wp-content/uploads/2014/05/IEEFA-Briefing-Note_IndianElectricityCoalPricing_4-May-2014.pdf 38 http://www.dnaindia.com/india/report-importing-coal-unjustified-as-country-has-huge-reserves-piyush-goyal-2071168 39 https://www.pwc.in/assets/pdfs/industries/power-mining/icc-coal-report.pdf, p.14

11 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!40 For a recent review of coal industry opinion on global markets and individual company outlooks see: Rohan Somwanshi,

Global seaborne coal exports to decline in 2015, but not enough to rebalance markets, SNL Energy, March 27, 2015

12 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!41 For a list of companies in the Index see: Appendix B 42 http://stowe.snetglobalindexes.com/pdf/coal-Presentation.pdf, p. 7 43 http://ieefa.org/report-nyc-and-nys-pension-funds-should-divest-coal-stocks-a-shrinking-industry-weak-upside-and-wrong-on-

climate-change/

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13 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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B. The Case for Broader Divestment from Coal-Burning Utilities

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#

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!44 http://www.nbim.no/globalassets/reports/2014/2014-responsible-investment.pdf. P. 71. 45 http://www.nbim.no/globalassets/reports/2014/2014-responsible-investment.pdf

14 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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15 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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16 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!46 The estimated losses here are $1 to $2 billion, see: Dan Testa,

business losses, SNL, December 21, 2012. 47 Currently the company is before the Ohio Public Service Commission to transfer coal plants under regulation. It is also

planning the sale of coal assets in the near future and watching the market for strategic opportunities. See: Darren Sweeney, Update: AEP merchant sale likely hinges on PJM capacity proposal, Ohio PPA Plan, SNL, April 23 2015. Based upon a review of past AEP annual filings with the SEC we estimate a coal plant write off of $1 billion.

48 http://ieefa.org/category/company/firstenergy/ 49 The estimated losses on coal plants at this utility is $25 billion. The utility is now in bankruptcy.

https://texasgreenreport.files.wordpress.com/2011/03/the-case-to-retire-big-brown-monticello-and-martin-lake-coal-plants.pdf, p. 7.

50 According to SNL Energy 67 GW MW of coal capacity has been retired since 2000. At the time the U.S. had 305 GW of coal fired capacity nationwide.

17 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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W)%270/#UG'G#>2+,+2"#70,?#F"#I@4I#A27%><7#)%2#(&%)<#+29#2%8#>2+,+2"#7%,?+)<9B#+9#4+/92Y)0/<"-#:7+17##%80/(209#+)#270#C+?:092G#&(/=029G#L)#NOO_# #92%1=#2/(?0?#(2#%60/#`_O#80/#97(/0j#2%?("#+2#2/(?09#(2#(/%>)?#`[S#80/#97(/0G#$70#1%&8()"#9>330/9#3/%&#?01/0(9+)<#/060)>09-#(#3(,,+)<#92%1=#8/+10-#,%99#%3#

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!51 Jason Lehmann, Duke to exit Midwest commercial generation, puts 6600 MW up for sale, SNL, February 17, 2015. The

company also declared a two-year $2.7 billion impairment in their 2010 10K filing with the SEC on coal related merchant power generation.

52http://www.eei.org/resourcesandmedia/industrydataanalysis/industryfinancialanalysis/QtrlyFinancialUpdates/Documents/QFU_Credit/2014_Q2_Credit_Ratings.pdf 53 http://ieefa.org/category/subject/edwardsport/ 54 http://ieefa.org/category/company/duke-energy/ 55 http://www.wsj.com/articles/dynegy-to-buy-assets-from-duke-energy-capital-1408706971 56 http://seekingalpha.com/article/3129406-duke-energys-duk-ceo-lynn-good-on-q1-2015-results-earnings-call-transcript?page=7&p=qanda&l=last 57 https://docs.google.com/file/d/0B_qWeYLAqoq1dmZ3N3dIYThPNUk/edit?pli=1 58 http://www.businesswire.com/news/home/20130722005823/en/Fitch-Affirms-Ratings-Dominion-Resources-VEPCo-

Outlook#.VU32qPRDtic , see also: http://www.providencejournal.com/breaking-news/content/20131008-new-owners-to-shutter-outmoded-brayton-point-power-station-in-2017.ece

18 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!59 http://ieefa.org/firstenergy/ 60 https://ecowatch.com/2015/05/01/firstenergy-war-on-renewables/ 61 http://carbon-pulse.com/germany-plans-to-wield-emissions-fines-for-coal-plants-reuters/ 62 http://www.bloomberg.com/news/articles/2015-04-23/rwe-chief-says-german-coal-power-policy-threatens-its-existence 63 http://www.rwe.com/web/cms/mediablob/en/1780926/data/1775774/6/rwe/investor-relations/bonds/credit-rating/standard-poors-

download.pdf 64 http://www.statista.com/statistics/278646/market-capitalization-of-eon-ag/ 65 http://www.theguardian.com/business/2015/mar/11/eon-reports-record-group-losses-hive-off-fossil-fuel-business-german

19 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!66 http://www.theguardian.com/environment/2013/dec/12/china-coal-emissions-smog-deaths

http://www.theguardian.com/environment/chinas-choice/2014/sep/24/china-pledges-to-cut-emissions-at-un-climate-summit http://www.nytimes.com/2014/11/21/business/energy-environment/china-to-place-limit-on-coal-use-in-2020.html?_r=0 http://blogs.scientificamerican.com/observations/2014/11/25/can-china-cut-coal/, http://www.bloomberg.com/news/articles/2015-03-24/beijing-to-close-all-major-coal-power-plants-to-curb-pollution

67 https://www.whitehouse.gov/the-press-office/2014/11/11/us-china-joint-announcement-climate-change 68 http://www.bloomberg.com/news/articles/2015-03-24/beijing-to-close-all-major-coal-power-plants-to-curb-pollution 69 http://www.chinadaily.com.cn/china/2015-03/19/content_19860091.htm

20 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!70 weaknesses see: http://ieefa.org/wp-content/uploads/2015/05/Adani-Restructuring-2015-May.pdf 71 http://www.bloomberg.com/news/articles/2015-05-04/world-s-worst-air-spurs-modi-s-25-billion-utility-clean-up-push 72 http://www.business-standard.com/article/specials/horror-and-its-layers-114060601215_1.html

21 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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22 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

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

-#7%:060/-#/02(+)#270#I(,+,00#!(9+)#&+)+)<#8/%X012#060)#(9#+2#17(/29#(#)0:#()?#?+330/0)2#92/(20<+1#?+/012+%)G##

W9#27+9#2017)%,%<"#/06%,>2+%)#/(8+?,"#?060,%89-#(#)(2>/(,#/09>,2#+9#27(2#&()"#)0:#270/&(,#8%:0/#8,()29#:+27#(#,+3098()#%3#DO#%/#&%/0#"0(/9#:+,,#8/%60#2%#F0#92/()?0?#(99029-#>)(F,0#2%#<0)0/(20#()#01%)%&+1#/02>/)G#L)?+(#+9#,+=0,"#2%#/>)#+)2%#270#9(&0#8/%F,0&#27(2#Y>/%80#7(9#3(10?#%60/#270#8(92#?01(?0-#:+27#270#&(X%/#>2+,+2+09#,+=0#cZY#()?#YG5;#900+)<#>)8/010?0)20?#97(/07%,?0/J:0(,27# J3+/0?#8%:0/#9012%/#)%:-#:+27#NOPD#900+)<#/01%/?#,%:#1%(,#8%:0/#>2+,+*(2+%)#/(209#%3#S[GQR-#>)?0/&+)+)<#8/%3+2(F+,+2"#%3#060)#270#)0:092#1%(,J3+/0?#8%:0/#8,()29G#QQ#

Developing Countries W,27%><7#&()"#?060,%8+)<#1%>)2/+09#(/%>)?#270#:%/,?#7(60#&(880?#%>2#8,()9#3%/#F>+,?+)<#)0:#1%(,J3+/0?#8%:0/#8,()29-#(#9+*0(F,0#8/%8%/2+%)#%3#27090#8,()9#(/0#)%2#1%&+)<#2%#3/>+2+%)G##$:%#%>2#%3#060/"#27/00#8,())0?#1%(,#8,()29#(/%>)?#270#:%/,?#7(60#F00)#1()10,0?#9+)10#NOPO-#(11%/?+)<#2%#(#/08%/2#8>F,+970?#F"#M%(,#':(/&#()?#'+0//(#M,>F#+)#C(/17#NOPSGQ_####

1(8(1+2"B#:%/,?:+?0#/0&(+)0?#(/%>)?#NO#IZ#2%#NS#IZ#80/#"0(/#3%/#%60/#2:%#?01(?09#kF03%/0##

M%,,012+60,"-#Y(92#W9+(-#'%>27#W9+(#()?#'%>270(92#W9+(#(11%>)20?#3%/#&%/0#27()#_OR#%3#)0:#1%(,#8,()2#1%)92/>12+%)#+)#NOPD#()?#270#/0<+%)#+9#8/%X0120?#2%#1%)2+)>0#2%#?%&+)(20#270#&(/=02#

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!73 http://www.thehindubusinessline.com/companies/reliance-power-seeks-higher-tariff-for-tilaiya-umpp/article5220813.ece 74 http://www.business-standard.com/article/economy-policy/govt-staring-at-empty-power-sector-pipeline-in-13th-plan-period-

114122600016_1.htm 75 http://www.businessworld.in/news/business/energy-and-power/power-play-1/1812027/page-1.html 76 http://ieefa.org/briefing-note-an-overview-of-adani-enterprises-corporate-restructuring/ 77 This discussion is taken from http://ieefa.org/wp-content/uploads/2015/05/Adani-Restructuring-2015-May.pdf. See full

document for more details. 78 Shearer, Christine, Nicole Ghio, Lauri Myllyvirta, and Ted Nace, Boom and Bust: Tracking the Global Coal Plant Pipeline,

March 2015

23 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

3%/#270#)0H2#9060/(,#"0(/9G#d%:060/-#)0:#1%(,#8,()29#+)#$(+:()-QE#e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

$70#:%/,?#:+,,#1%)2+)>0#2%#F>/)#1%(,#3%/#&()"#"0(/9-#27%><7#&%92#1%>)2/+09#(/0#9,%:+)<#270#</%:27#%3#1%(,#%/#7(,2+)<#0H8()9+%)#%60/(,,G#@%,,>2+%)#8/%F,0&9#()?#/0<>,(2%/"#/098%)909#,%%&#,(/<0#()?#8,(10#8/099>/0#%)#8%:0/#<0)0/(2%/9#2%#3+)?#(,20/)(2+609#2%#1%(,G#M%&802+2+%)#+9#

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

#

IV. Recommendations for Next Steps #

A. Overview of Fund Governance85 and the Exclusion and Divestment Decisions

$70#'2%/2+)<02#+9#17(/<0?#:+27#9022+)<#270#8%,+1+09#%3#270#I@4IG#$70#4+)()10#C+)+92/"#+9#270#%:)0/#()?#8/%6+?09#0H01>2+60#?+/012+%)G#;%/<09#!()=#+9#270#&()(<0/#()?#90/609#2%#0H01>20#270#+)6092&0)2#()?#+)6092&0)2J/0,(20?#8/%</(&9#27(2#1%)92+2>20#270#?("J2%J?("#%80/(2+%)9#%3#I@4IG###

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!79 http://www.taipeitimes.com/News/taiwan/archives/2015/05/05/2003617542 , http://focustaiwan.tw/news/aeco/201504150029.aspx 80 http://www.powerengineeringint.com/articles/2014/11/viet-nam-to-build-power-plant-despite-warnings-over-coal-shortage.html 81 http://www.theaustralian.com.au/business/mining-energy/agl-energy-turns-its-back-on-coal-fired-power/story-e6frg9df-

1227307971981 82http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/opinionanalysis/2015/May/opinionanalysis_May5.xml&section=opinion

analysis 83 http://newsinfo.inquirer.net/688636/batangas-priests-lead-fight-vs-coal-fired-power-plant 84 http://www.mmtimes.com/index.php/national-news/14307-no-coal-no-toyo-thai-mon-villagers-rally-against-plant.html 85 http://www.nbim.no/contentassets/0ff9cd1d5c8e4737a7b7262d3ec167d4/norges-bank-investment-management-annual-

report-2014.pdf , see pages 80-83 for a more complete discussion of the Fund and assigned responsibilities

24 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

I@4I#7(9#()#(12+60#8/%</(&#%3#027+1(,#/06+0:-#1%&8()"#0)<(<0&0)2-#%:)0/97+8#(12+6+2"#+)#F/%(?0/#3%/>&9#()?#(#?+6092&0)2#8%,+1"G#$70#3>)12+%)9#(/0#1(//+0?#%>2#(11%/?+)<#2%#270#3%,,%:+)<#(99+<)&0)2#%3#/098%)9+F+,+2+09\##

$70#C+)+92/"#%3#4+)()10#(9#270#%:)0/#7(9#270#(>27%/+2"#2%#/06+0:#()?#/0&%60#%/#0H1,>?0#(99029#3/%&#270#I@4I#F(90?#>8%)#027+1(,#</%>)?9#()?#270#1%)?>12#%3#270#1%&8()+09G##

;%/<09#!()=#&(=09#%80/(2+%)(,#?01+9+%)9#/0,(20?#2%#270#?+6092&0)2#%3#97(/09-#270#(12>(,#90,,+)<#%3#97(/09#:+27+)#270#F%>)?9#%3#(12+60#&()(<0&0)2G##

;%/<09#!()=#1()#&(=0#27090#?01+9+%)9#F(90?#>8%)#8>/0,"#3+)()1+(,#1%)?+2+%)9#%/#F(1=0?#F"#F/%(?0/#9>92(+)(F+,+2"#1%)9+?0/(2+%)9G##

;%/<09#!()=#(,9%#+&8,0&0)29#(#8/%</(&#%3#1%&8()"#0)<(<0&0)2#:70/0F"#1%&8()+09#(/0#+)#/0<>,(/#?+(,%<>0#:+27#270#!()=#%)#(#90/+09#%3#+)6092&0)2J/0,(20?#+99>09G#$70#!()=#(,9%#

%/"-#97(/07%,?0/#()?#%270/#92(=07%,?0/#+99>09G##

#

#

#

25 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

B. Substantive Position of Expert Group $70#YH80/2#I/%>8#7(9#2(=0)#270#8%9+2+%)#27(2#(#F/%(?0/#?+6092&0)2#%3#1%(,#+9#+)1%)9+920)2#:+27#270#F092#+)20/0929#%3#270#I@4IG#Z7+,0#(1=)%:,0?<+)<#270#/+9=9#3(10?#F"#270#I@4I#3/%&#1,+&(20#17()<0-#270#YH80/2#I/%>8#3+)?9#27(2#1%&8()"#0)<(<0&0)2#3%,,%:0?#F"#(#1(90JF"J1(90#()(,"9+9#%330/9#270#F092#%88%/2>)+2"#3%/#033012+60#(12+%)G#$70#YH80/2#I/%>8#(,9%#1(,,9#3%/#(#)0:#1(20<%/"#%3#()(,"9+9-# 2%#1,+&(20#17()<0- 2%#F0#>90?#+)#3>2>/0#?+,+<0)10#06(,>(2+%)9G##

I@4I#8,(109#(#7+<7#6(,>0#%)#+29#0)<(<0&0)2#:+27#1%&8()+09#+)#+29#8%/23%,+%G#I@4I#+9#+)6%,60?#:+27#7>)?/0?9#%3#1%&8()+09#())>(,,"#(2#270#92(33#()?#F%(/?#,060,G_T##$70#0)<(<0&0)2#8/%1099#7(9#F00)#>90?#F"#&()"#+)92+2>2+%)(,#+)6092%/9#2%#<%%?#033012#+)#(#)>&F0/#%3#1(909G#d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

L)#NOPO-#270#UG'G#1%(,#+)?>92/"#:%/=0?#9>110993>,,"#2%#?030(2#1%&8/070)9+60#1,+&(20#,0<+9,(2+%)G#$70#+)?>92/"# 6+12%/" #?+?#)%27+)<#2%#920&#270#?%:):(/?#98+/(,#%3#1%(,#1%&8()"#3+)()1+(,#3%/2>)09G#_Q#

V(92#"0(/#M0/09-#(#UG'G#F(90?#)%)J<%60/)&0)2(,#%/<()+*(2+%)#:+27#(#,%)<#7+92%/"#%3#97(/07%,?0/#0)<(<0&0)2-#:%/=0?#:+27#QO#+)92+2>2+%)(,#+)6092%/9#:%/27#%60/#`P#2/+,,+%)#+)#2%2(,#/0K>092+)<#,%)<J20/&#1(/F%)J1%(,#1%&8()+09G#$70#+)?+6+?>(,#1%(,#1%&8()+09#%330/0?#)%#9%,>2+%)9-#()?#+)#&%92#1(909#?+?#)%2#F%270/#2%#()9:0/#27+9#+)6092%/#K>0/"G#__#

V(92#&%)27-#@0(F%?"#Y)0/<"#M7(+/&()#I/0<#!%"10#/030//0?#2%#1,+&(20#17()<0#(9#()## _E#@0(F%?"#+9#1%)9+?0/0?#270#

,(/<092#8/+6(20#1%(,#8/%?>10/#+)#270#:%/,?-#:+27#/090/609#+)#W>92/(,+(#()?#270#U)+20?#'2(209#()?#+)6092&0)2#+)20/0929#+)#I0/&()"-#C%)<%,+(#()?#M7+)(G##

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!86 The most recent Norges Bank report lists the meetings that Bank officials have had with companies in most sectors. It does

not list any meetings with coal mining companies. http://www.nbim.no/globalassets/reports/2014/2014-responsible-investment.pdf, p. 37-38

87 http://ieefa.org/report-nyc-and-nys-pension-funds-should-divest-coal-stocks-a-shrinking-industry-weak-upside-and-wrong-on-climate-change/

88 Based on interviews with CERES staff, the coal industry was by and large unresponsive. http://www.ceres.org/issues/press/press-releases/investors-ask-fossil-fuel-companies-to-assess-how-business-plans-fare-in-low-carbon-future?searchterm=carbon+asset+risk

89 http://www.peabodyenergy.com/content/120/press-releases

26 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

U2+,+2"#+)20/0929#+)#270#U)+20?#'2(209-#:7+,0#8/%3099+)<#9>88%/2#3%/#033%/29#2%#1%&F(2#1,+&(20#17()<0-#7(60#+99>0?#(#&(99+60#1/+2+1+9&#%3#/010)2#</00)7%>90#<(9#/0<>,(2+%)-#+)1,>?+)<#K>092+%)+)<#270#,0<(,#(>27%/+2"#%3#270#UG'G#<%60/)&0)2#2%#(??/099#270#+99>0GEO#

#

C. The Decision to Divest from Coal Thus Far

8%,+1"#%3#1%)9+?0/+)<#F%27#270#+)20</(2+%)#%3#0)6+/%)&0)2(,#+99>09#:+27#270#1%)920,,(2+%)#%3#3+)()1+(,#/+9=9#+)#270#1%(,#+)?>92/"#7(9#1%&80,,0?#+2#2%#?+6092#3/%&#&%92#%3#270#8>/0J8,("#1%(,#&+)+)<#1%&8()+09#+)#270#:%/,?G#$70#92089#27(2#270#I@4I#7(9#2(=0)#27>9#3(/#2%#?+6092#3/%&#+)?+6+?>(,#1%(,#1%&8()+09#()?#%)0#8%:0/#1%&8()"-#(,%)<#:+27#+29#<%60/)()10#+)3/(92/>12>/0-#8%9+2+%)#+2#:0,,#2%#1%)9+?0/#(??+2+%)(,#(12+%)9#/0,(20?#2%#1%(,G##

$70#I@4I#7(9#(#6(/+02"#%3#8%99+F,0#(12+%)9#%80)#2%#+2-#:7+17#270#YH80/2#I/%>8#?091/+F09#+)#270#1(20<%/+09#%3#(12+60#%:)0/97+8-#0)<(<0&0)2-#0H1,>9+%)#()?#?+6092&0)2G##W,,#%3#27090#2%%,9#(/0#0990)2+(,#2%#8/%2012+)<#270#I@4I#3/%&#270#/+9=9#%3#%:)+)<#+)20/0929#+)#3%99+,#3>0,#1%&8()+09G#4%/#?01+9+%)9#/0<(/?+)<#1%(,JF>/)+)<#>2+,+2+09#()?#1%(,J&+)+)<#1%&8()+09-#:0#/01%&&0)?#27(2#270#)0H2-#&%92#8/>?0)2#9208-#97%>,?#F0#(#F/%(?0/#8%,+1"#%3#1%(,#?+6092&0)2G##

L)#NOPD#;%/<09#!()=#?+60920?#3/%&#&%92#8>/0J8,("#1%(,#&+)+)<#1%&8()+09G#M+2+)<#F%27#0)6+/%)&0)2(,#()?#3+)()1+(,#1%)9+?0/(2+%)9#A0H8%9>/0#2%#0)0/<"#&(/=029B#270#F()=#?+60920?#3/%&#27090#&+)+)<#1%&8()+09#()?#%)0#8%:0/#<0)0/(2+%)#1%&8()"G#8/+)1+8,09#%3#0)<(<0&0)2#()?#(12+60#%:)0/97+8#()?#+29#?01+9+%)#2%#?+6092#3/%&#&%92#%3#270#+)?+6+?>(,#1%&8()+09#/01%<)+*0?#?+,+<0)10#+)#270#1%(,#(/0(G##

$70#I@4I#7(9#7%,?+)<9#+)#(#9+<)+3+1()2#1/%99#9012+%)#%3#270# #>2+,+2+09G#$7090#>2+,+2+09-#8(/2+1>,(/,"#27%90#:+27#9+<)+3+1()2#1%(,JF>/)+)<#1(8(1+2"-#(/0#)%:#270#,(/<092#1%(,#/+9=#+)#270#I@4I#8%/23%,+%G##

#

D. Next Steps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http://www.eei.org/issuesandpolicy/testimony-filings-briefs/Documents/EEI_111(d)_Comments_Final_12012014.pdf 91 The steps outlined in this paper should be very familiar to the stakeholders in the Norwegian Fund process. Many of the tools

suggested here are already used by Norges Bank and detailed in the Governance Model it describes in its Annual Report on Responsible Investing: see: http://www.nbim.no/globalassets/reports/2014/2014-responsible-investment.pdf . pps. 14-45.

27 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

#h>092+%)9#2%#(9=#%3#>2+,+2"#7%,?+)<9#+)1,>?0#:70270/#(#1%&8()"#7(9#(#&+)+&(,#(&%>)2#%3#1%(,#+)#+29#3>0,#&+HG#h>092+%)9#2%#(9=#%3#&+)0#7%,?+)<9#+)1,>?0#7%:#&>17#270/&(,#1%(,#(99029#:0+<7#+)#

G#

A clear mandate without micromanagement W#F/%(?#&()?(20#2%#?+6092#3/%&#1%&8()+09#+)6%,60?#:+27#1%(,#&+)+)<#()?#1%(,#F>/)+)<#(2#(#8(/2+1>,(/#27/097%,?#7(9#270#(?6()2(<0#%3#F0+)<#1,0(/-#033012+60#()?#(17+06(F,0G##

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

1%&8()+09#:+27#9+<)+3+1()2#270/&(,#1%(,#7%,?+)<9#F01%&0#8/%3+2(F,0#(<(+)#/0&(+)9#2%#F0#900)GEN#

5)#270#&+)+)<#9+?0-#270#06+?0)10#%3#(#F/%(?-#,%)<J20/&#92/>12>/(,#?01,+)0#27(2#+9#?092/>12+60#2%#97(/0#6(,>0#+9#F0"%)?#?+98>20G#$70#%),"#8%+)2#%3#?0F(20#3%/#270#3%/0900(F,0#3>2>/0#3%/#1%(,J&+)+)<#1%&8()+09#+9#7%:#&>17#:%/90#+2#:+,,#<02G###

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

'060/(,##8/%8%9(,9#7(60#F00)#(?6()10?#27(2#9><<092#?+6092&0)2#:%>,?#F0#(88/%8/+(20#3%/#270#4>)?#+3#+2#2(/<020?#1%&8()+09#27(2#/0,"#>8%)#&%/0#27()#[OR#%/#SOR#%3#1%(,#F>/)+)<#%/#270/&(,#1%(,#&+)+)<#+)#270+/#%80/(2+%)9G#U/<0:(,?#092+&(209E[#27(2#(2#270#[OR#,060,-#270#4>)?#:%>,?#?+6092#3/%&#_D#1%&8()+09#6(,>0?#(2#;5^#DOGD#F+,,+%)#AU'`SGD#F+,,+%)B-#(88/%H+&(20,"#PGDR#%3#270#4>)?G#U)?0/#270#SOR#910)(/+%#270#4>)?#:%>,?#?+6092#3/%&#SE#1%&8()+09#6(,>0?#(2#()#092+&(20?#;5^#NSGN#F+,,+%)#AU'`[G[#F+,,+%)BG#U/<0:(,?#7(9#(?6()10?#(#&%/0#27%/%><7<%+)<#1%(,#1/+20/+(#27(2#:%>,?#?+6092#3/%&#PPD#1%&8()+09#6(,>0?#(2#;5^#_SGS#(2#U'`PPGD#F+,,+%)G#

#4/%&#(#92/+12,"#3+)()1+(,#92()?8%+)2-#270#,099#0H8%9>/0#(#&+)+)<#1%&8()"#7(9#2%#270/&(,#1%(,#270#&%/0#,+=0,"#+9#:+,,#3+)?#3+)()1+(,#9%,60)1"G#M%(,#&(/=029#(/0#%60/9>88,+0?#()?#:+,,#/0&(+)#9%#

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!92 http://www.afr.com/business/mining/coal/no-coal-price-recovery-for-a-long-long-time-says-rio-tinto-20150510-ggy3m0 93 For a description of the data, methods and analysis for these scenarios see: https://www.urgewald.org/sites/default/files/dirty_and_dangerous_coal_gpf.pdf

28 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

3%/#&%92#%3#270#)0H2#?01(?0G#I@4I#7(9#033012+60,"#?+60920?#3/%&#(,,#8>/0J8,("#1%(,J&+)+)<#1%&8()+09#()?#97%>,?#0H20)?#+29#/+9=#()(,"9+9#()?#?+6092#3/%&#(,,#+)20</(20?#%/#?+60/9+3+0?#&+)+)<#1%&8()+09#:+27#&%/0#27()#NOR#%3#8/%?>12+%)#1%&+)<#3/%&#1%(,#A%/#27(2#8/%?>10#&%/0#27()#SO#&+,,+%)#2%)9#%3#270/&(,#1%(,#80/#"0(/BG##

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

W9#:+27#1%(,#&+)+)<-#270#,%:0/#270#(&%>)2#%3#1%(,J3+/0?#<0)0/(2+%)#+)#(#>2+,+2"#8%/23%,+%#270#&%/0#,+=0,"#270#1%&8()"#:+,,#F0#+)6%,60?#+)#8/%?>12+60#0,012/+1+2"#?0,+60/"G##

I+60)#270#(,/0(?"#,(/<0#,%9909#(2#,(/<0#>2+,+2+09#(/%>)?#270#:%/,?-#(,%)<#:+27#,+=0,"#3>/270/#&(/=02#()?#8%,+1"#17%+109#(:("#3/%&#1%(,-#LYY4W#/01%&&0)?9#27(2#(#8/>?0)2#+)6092&0)2#8,()#:%>,?#F0#2%#?+6092#3/%&#(,,#1%(,JF>/)+)<#>2+,+2"#%/#<0)0/(2+%)#1%&8()+09#:+27#NOR#%/#&%/0#%3#270+/#8%/23%,+%#1(8(1+2"#?0?+1(20?#2%#1%(,G##

'%&0#K>092+%)9#7(60#F00)#/(+90?#/0<(/?+)<#270#+&F(,()109#27(2#&("#F0#1/0(20?#:+27+)#270##+3#270#/01%&&0)?(2+%)9#&(?0#+)#27+9#/08%/2#(/0#+&8,0&0)20?G#C%92#

+)?0H09#7(60#%)<%+)<#&%)+2%/+)<#033%/29#%)#1%&8()"#80/3%/&()10#27(2#(,,%:#3%/#270#(??+2+%)#()?#?0,02+%)#%3#1%&8()+09#+)#270#+)?0HGED#L3#)01099(/"-#270#4>)?#1()#0)20/2(+)#6(/+%>9#/0F(,()1+)<#910)(/+%9#27(2#(,,%:#3%/#270#1%)2+)>0?#>90#%3#270#+)?0HG##

L2#7(9#F01%&0#(,&%92#1%&&%)8,(10#3%/#1%(,#1%&8()+09#2%#F0#F>&80?#3/%&#8/%&+)0)2#3+)()1+(,#+)?0H09#3%/#3(+,>/0#2%#&002#&+)+&>&#/0K>+/0&0)29G#@0(F%?"#Y)0/<"#:(9#?0,020?#3/%&#270#'2()?(/?#()?#@%%/ 9#SOO#L)?0H#,(92#"0(/GES#W,87(#;(2>/(,#c09%>/109#()?#W/17#M%(,-#2:%#,(/<0#UG'J#F(90?#1%(,#1%&8()+09-#7(60#F00)#:(/)0?#27(2#270"#(/0#+)#+&&+)0)2#?()<0/#%3#?0,+92+)<#3/%&#270#92%1=#0H17()<0#3%/#3(+,>/0#2%#&(+)2(+)#92%1=#8/+109#(F%60#`P#80/#97(/0GET#

#

Why 20 Percent? 5)#270#&+)+)<#9+?0-#270#I@4I#7(9#(,/0(?"#&(?0#+2#1,0(/#27(2#+2#+9#?+6092+)<#3/%&#8>/0J8,("#1%&8()+09G#4>/270/#?+6092&0)2#+9#(#3(+/,"#9+&8,0#K>092+%)#%3#/+9=#()?#&(270&(2+19G#W#1%&8()"#27(2#,+&+29#NOR#%3#+29#8/%?>12+%)#2%#270/&(,#1%(,#1()#/0,"#>8%)#%270/#%80/(2+%)9 8%:0/#8,()29-#3%/#0H(&8,0-#+)3/(92/>12>/0#+)6092&0)29-#%/#%270/#&02(,9#()?#&+)0/(,9#&+)+)< 3%/#/02>/)9G#W#NOR#

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!94 For example the FTSE Global All Cap Index relied upon by the GPFG makes provision for adding and deleting both countries

and companies. see: http://www.ftse.com/vanguard/Content/docs/FTSE_Global_Equity_Index_Series_Index_Rules.pdf?567, specifically Section 7. Deletions.

95 http://www.stltoday.com/business/local/peabody-energy-to-be-removed-from-s-p-index/article_601ff555-f353-5df4-8f02-6ecae78e79d4.html

96 http://www.kpax.com/story/29003518/americas-coal-industry-at-a-crossroads-as-stock-prices-plummet

29 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

27/097%,?#%330/9#/+9=#8/%2012+%)G#M%&8()+09#27(2#&+)0#&%/0#27()#SO#&+,,+%)#2%)9#F>2#:7%90#2%))(<0#()?#/060)>09#3(,,#97%/2#%3#270#NOR#27/097%,?#(/0#)060/270,099#9>F92()2+(,,"#0H8%90?G#

5)#270#1%(,JF>/)+)<#>2+,+2"#9+?0-#8/%F(F+,+2"#()?#9+&8,0#/+9=#&()(<0&0)2#+)3%/&#270#?+6092&0)2#K>092+%)G#L3#%)0#900=9#()#%60/(,,#/(20#%3#/02>/)#%3#PPR#%)#(#>2+,+2"#8%/23%,+%-#9+&8,0#&(270&(2+19#9><<092#27(2#(#NOR#0H8%9>/0#2%#1%(,-#:7+17#+9#,+=0,"#2%#8/%?>10#F0,%:#270#2(/<02#,060,#%3#/02>/)9-#+9#0(9+0/#2%#&()(<0#27()#(#[OR#%/#SOR#0H8%9>/0G#W)#>)91+0)2+3+1#F>2#8/(12+1(,#+)6092&0)2#0H(&8,0#70/0#+9#8/%6+?0?#F"#270#;%/<09#!()=#,+92#%3#>2+,+2+09G#cZYJWI-#(#>2+,+2"#:+27#(#TOR#1%(,#8%/23%,+%-#80/3%/&9#K>+20#8%%/,"#+)#()#0)6+/%)&0)2#+)#:7+17#8%,+1"#?01+9+%)9#(/0#3%/1+)<#(#&%60#(:("#3/%&#1%(,G##L)#270#UG'G-#.>=0#Y)0/<"-#%)#270#%270/#7()?-#80/3%/&9#:0,,#:+27#(#DOR#1%(,#8%/23%,+%#27(2#+9#8/%20120?#+)#8(/2#F"#/0<>,(2%/9G#l02#+2#92+,,#&>92#/0?>10#+29#DOR#1%(,#0H8%9>/0#(9#+2#+9#,%%=+)<#2%#90,,#+29#>)/0<>,(20?#1%(,#(99029#()?#2%#+)6092#+)#270#3>2>/0#+)#2/()9&+99+%)#+&8/%60&0)29#()?#9%,(/#0)0/<"G#;0H2Y/(#7(9#(#60/"#9&(,,#0H8%9>/0#2%#1%(,-#(2#DR#%3#270#<0)0/(2+%)#8%/23%,+%-#()?#+2#+9#&()(<+)<#2%#%>280/3%/&#&%92#%3#270#%270/#>2+,+2+09#%)#270#,+92G##

$70#9%,>2+%)9#()?#17%+109#%3#+)?+6+?>(,#>2+,+2+09#6(/"#F"#&(/=029-#/0<+%)9#()?#8%,+2+1(,#1>,2>/0G#W9#(#,(/<0#+)92+2>2+%)(,#+)6092%/-#I@4I#/0K>+/09#(#&%/0#&(1/%J%/+0)20?#/>,0#2%#&(=0#+29#X>?<&0)29-#()?#(#NOR#92()?(/?#+9#+)#,+)0#:+27#8/%2012+)<#(<(+)92#()#+)?>92/"#27(2#7(9#(,/0(?"#0H80/+0)10?#,(/<0#,%9909#()?#+9#,+=0,"#2%#0H80/+0)10#&%/0G#

#

Conclusion $70#L)92+2>20#3%/#Y)0/<"#Y1%)%&+19#()?#4+)()1+(,#W)(,"9+9#/01%&&0)?9#27(2#270#;%/:0<+()#I%60/)&0)2#@0)9+%)#4>)?#I,%F(,#?+6092#3/%&#&+)+)<#1%&8()+09#27(2#?0?+1(20#NOR#%/#&%/0#%3#270+/#8/%?>12+%)#2%#1%(,#&+)+)<#%/#27(2#&+)0#&%/0#27()#SO#&+,,+%)#2%)9#%3#1%(,#80/#"0(/G###Z0#/01%&&0)?#(,9%#27(2#I@4I#?+6092#3/%&#>2+,+2+09#()?#8%:0/#<0)0/(2+%)#1%&8()+09#27(2#7(60#&%/0#27()#NOR#%3#270+/#<0)0/(2+%)#1(8(1+2"#&+H#+)#1%(,#3+/0?#8%:0/#8,()29G###$70#;%/:0<+()#@(/,+(&0)2#A'2%/2+)<02B#97%>,?#1,0(/,"#&()?(20#270#?+6092&0)2-#()?#4>)?#&()(<0/9#97%>,?#+&8,0&0)2#+2G#

W#F/%(?#&()?(20#2%#?+6092#3/%&#1%&8()+09#+)6%,60?#:+27#1%(,#&+)+)<#()?#1%(,#F>/)+)<#7(9#270#(?6()2(<0#%3#F0+)<#1,0(/-#033012+60#()?#(17+06(F,0G#$70#1%(,#+)?>92/"#+9#(/<>(F,"#270#8%%/092J3%/#F%27#1%(,#&+)+)<#()?#1%(,#F>/)+)<#1%&8()+09#9><<0929#:0(=#,%)<J20/&#80/3%/&()10#3%/#F%27#9012%/9G###I@4I#:%>,?#?0&%)92/(20#+29#1%&&+2&0)29#2%#F%27#9%1+(,#/098%)9+F+,+2"#()?#+29#3+?>1+(/"#?>2+09#F"#3%,,%:+)<#27090#/01%&&0)?(2+%)9G## #

30 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

About the Author "/>!A#,U+%%/Q!V+0&G4/0!/6!M+,#,G&Q!'11MC!

#$%&#'()*+,,%#+9#270#.+/012%/#%3#4+)()10#3%/#270#L)92+2>20#3%/#Y)0/<"#Y1%)%&+19#()?#4+)()1+(,#W)(,"9+9G#d0#7(9#:/+220)#9060/(,#92>?+09#%)#1%(,#8,()29-#/(20#+&8(129-#1/0?+2#()(,"909-#()?#270#8>F,+1#()?#8/+6(20#3+)()1+(,#92/>12>/09#3%/#1%(,G#L)#(??+2+%)-#'()*+,,%#7(9#2092+3+0?#(9#()#0H80/2#:+2)099-#2(><72#2/(+)+)<#9099+%)9-#()?#1%)?>120?#&0?+(#+)20/6+0:9G#@/+%/#2%#7+9#:%/=#:+27#270#L)92+2>20#3%/#Y)0/<"#Y1%)%&+19#()?#4+)()1+(,#W)(,"9+9#()?#7+9#%:)#1%)9>,2+)<#8/(12+10-#'()*+,,%#980)2#PQ#"0(/9#:+27#F%27#270#M+2"#()?#270#'2(20#%3#;0:#l%/=#+)#6(/+%>9#90)+%/#3+)()1+(,#()?#8%,+1"#

27(2#8>2#7+&#+)#17(/<0#%3#270#3+)()109#%3#P-[OO#>)+29#%3#,%1(,#<%60/)&0)2-#270#&()(<0&0)2#%3#DD-OOO#<%60/)&0)2#1%)2/(129#())>(,,"-#%60/9+<72#%3#%60/#`NOO#F+,,+%)#+)#92(20#()?#,%1(,#&>)+1+8(,#F%)?#8/%</(&9#()?#/098%)9+F+,+2"#3%/#(#`PST#F+,,+%)#80)9+%)#3>)?G#4/%&#PEEO#2%#PEE[#'()*+,,%#(,9%#

33+10G##

W2#F%27#270#M+2"#()?#'2(20#,060,#'()*+,,%#7(?#9801+3+1#/098%)9+F+,+2+09#3%/#+)6092&0)2#(,,%1(2+%)-#97(/07%,?0/#<%60/)()10#()?#8%,+2+1(,#/0,(2+%)9#%3#270#4>)?G#$7+9#+)1,>?0?#)0<%2+(2+%)#:+27#270#;l'#92(20#,0<+9,(2>/0#%60/#(9902#(,,%1(2+%)#92/(20<"G#d0#8(/2+1+8(20?#+)#270#?+6092&0)2#%3#;lM#3>)?9#3/%&#'%>27#W3/+1(-#;l'#8(/2+(,#?+6092&0)2#%3#2%F(11%#(9#:0,,#(9#3%/&+)<#9801+3+1#80)9+%)#3>)?#/098%)909#%)#'>?()-#(33%/?(F,0#7%>9+)<-#7>&()#/+<729#()?#?+91/+&+)(2+%)G#d0#7(?#%60/9+<72#/098%)9+F+,+2"#3%/#270#3%/&>,(2+%)#%3#80)9+%)#3>)?#6%2+)<#8%,+1+09#%)#7>)?/0?9#%3#97(/07%,?0/#8/%8%9(,9G##

'()*+,,%#/010)2,"#1%)2/+F>20?#(#17(820/#2%#270#5H3%/?#d()?F%%=#%3#;0:#l%/=#'2(20#I%60/)&0)2##

Important Information#

$7+9#/08%/2#+9#3%/#+)3%/&(2+%)#()?#0?>1(2+%)(,#8>/8%909#%),"G#L2#+9#+)20)?0?#9%,0,"#(9#(#?+91>99+%)#8+010#3%1>90?#%)#270#2%8+1#%3#270#0)0/<"#9012%/G##U)?0/#)%#1+/1>&92()10#+9#+2#2%#F0#1%)9+?0/0?#(9#(#3+)()1+(,#8/%&%2+%)G#L2#+9#)%2#()#%330/#2%#90,,#%/#(#9%,+1+2(2+%)#2%#F>"#()"#+)6092&0)2#/030//0?#2%#+)#27+9#?%1>&0)2j#)%/#+9#+2#()#%330/#2%#8/%6+?0#()"#3%/&#%3#+)6092&0)2#90/6+10G#

$7+9#/08%/2#+9#)%2#&0()2#(9#(#<0)0/(,#<>+?0#2%#+)6092+)<-#%/#(9#(#9%>/10#%3#()"#9801+3+1#+)6092&0)2#/01%&&0)?(2+%)G#Z7+,0#270#+)3%/&(2+%)#1%)2(+)0?#+)#27+9#/08%/2#+9#3/%&#9%>/109#F0,+060?#/0,+(F,0-#:0#?%#)%2#/08/090)2#27(2#+2#+9#(11>/(20#%/#1%&8,020#()?#+2#97%>,?#)%2#F0#/0,+0?#>8%)#(9#9>17G#U),099#(22/+F>20?#2%#%270/9-#()"#%8+)+%)9#0H8/0990?#(/0#%>/#1>//0)2#%8+)+%)9#%),"G#

M0/2(+)#+)3%/&(2+%)#8/090)20?#&("#7(60#F00)#8/%6+?0?#F"#27+/?#8(/2+09G#$70#L)92+2>20#3%/#Y)0/<"#Y1%)%&+19#()?#4+)()1+(,#W)(,"9+9#F0,+0609#27(2#9>17#27+/?J8(/2"#+)3%/&(2+%)#+9#/0,+(F,0-#F>2#?%09#)%2#<>(/()200#+29#(11>/(1"-#2+&0,+)099#%/#1%&8,020)099j#()?#+2#+9#9>FX012#2%#17()<0#:+27%>2#)%2+10G#L3#270/0#(/0#1%)9+?0/0?#2%#F0#&(20/+(,#0//%/9-#8,0(90#(?6+90#270#(>27%/9#()?#(#/06+90?#60/9+%)#1()#F0#8>F,+970?G##

31 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

Appendix A LARGEST UTILITIES IN GPFG PORTFOLIO: Comparison of Stock Performance with the Dow Jones Industrial Average The following data was retrieved from Yahoo Finance on May 1, 2015. ENEL SpA - ticker ENLA.DE

32 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

33 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

SSE PLC Ticker: SSE.L

GDF Suez (now called ENGIE) ticker GSZ.PA

NextEra Energy ticker NEE (NYSE)

34 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

E.ON SE ticker: EONGY

Electricite de France ticker: EDF.PA

35 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

Duke Energy: ticker DUK (NYSE)

RWE AG ticker: RWE.DE

36 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

Dominion Resources: D (NYSE)

Appendix B - Stowe Global Coal IndexSM.

37 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

Constituents & Weights As of Mar 22, 2015 quarterly rebalancing

Ticker Company Country W eight

Sector

1088 H K China Shenhua Energy Co Ltd H Shares CN 8.32 Mining & Production B T U UN Peabody Energy Corp US 8.17 Mining & Production 1171 H K Yanzhou Coal Mining Co Ltd H Shares CN 7.93 Mining & Production C N X UN CONSOL Energy Inc US 7.91 Mining & Production E X X SJ Exxaro Resources ZA 4.87 Mining & Production 1898 H K China Coal Energy Co Ltd H Shares CN 4.73 Mining & Production 900948 C H

Inner Mongolia Yitai Coal-B CN 4.52 Mining & Production

SC C PM Semirara Mining and Power Corp PH 4.29 Mining & Production A DR O IJ Adaro Energy Tbk PT ID 4.29 Mining & Production 639 H K Fushan International Energy Group Ltd. HK 3.47 Mining & Production W H C A U Whitehaven Coal Ltd AU 3.38 Mining & Production PTB A IJ Tambang Batubara Bukit Asam Tbk PT ID 3.27 Mining & Production I T M G IJ Indo Tambangraya Megah PT ID 3.26 Mining & Production JO Y UN Joy Global Inc US 7.93 Equipment, Transport &

Technology H W UN Headwaters Inc US 4.72 Equipment, Transport &

Technology R A I L U Q Freightcar America US 2.20 Equipment, Transport &

Technology S C N Sherritt Intl Corp Restr vtg CA 2.96 Mining & Production W L B US Westmoreland Coal Co US 2.83 Mining & Production C L D UN Cloud Peak Energy Inc US 2.35 Mining & Production JSW PW Jastrzebska Spolka Weglowa SA PL 1.62 Mining & Production A C I UN Arch Coal US 1.17 Mining & Production A NR UN Alpha Natural Resources US 1.08 Mining & Production HSP L N Hargreaves Services PLC GB 1.05 Mining & Production 975 H K Mongolian Mining Corp MN 1.00 Mining & Production BU M I IJ Bumi Resources Tbk PT ID 0.95 Mining & Production 3315 JT Nippon Coke & Engineering Co Ltd JP 0.89 Mining & Production H RU M IJ Harum Energy Tbk PT ID 0.56 Mining & Production

W L T UN Walter Energy Inc. US 0.25 Mining & Production !(1=</%>)?#8/090)2(2+%)#%)#'2%:0#I,%F(,#M%(,#L)?0H\#7228\]]92%:0G9)02<,%F(,+)?0H09G1%&]8?3]1%(,J@/090)2(2+%)G8?3! # #

38 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

Appendix C Largest coal power producers by MW coal capacity (2013)&$70#3%,,%:+)<#?(2(#:(9#8/%6+?0?#F"#c(+)3%/092#W12+%)#;02:%/=-#(9#()#(880)?+H#2%#270+/#/08%/2#0)2+2,0?-#?(2(#+9#3%/#NOP[#A0H1082#3%/#M7>F>#Y,012/+1-#M7+)(#.(2()<-#()?#^()9(+#Y,012/+1#@%:0/-#:7+17#(/0#3%/#NOPNBG#.(2(#+9#9%>/10?#3/%&#!,%%&F0/<#A0H1082#3%/#M7+)(#I>%?+()-#.$Y^-#()?#Y9=%&-#:7+17#(/0#9%>/10?#3/%&#1%&8()"#:0F9+209#()?#3%/#UG'G#0,012/+1#8%:0/#1%&8()+09-#:70/0#?(2(#+9#1%>/209"#%3#270#'+0//(#M,>FBG!

>02691632?23&& @/)+'(A&B2CC7(&@60*A&>?)236& ",2*(C&#*6*(0&8+D'6,E& B(F656**0&+?&

3+67&F(,()6*2,F&36'632*EA&:;<G&

8+D'6,E& B(F656**0&+?&3+67&36'632*EA&:;<G&

8+D'6,E& B(F656**0&+?&3+67&36'632*EA&:;<G&

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!

39 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

Appendix D!

>''(,C2H&$&I&J1.JK0&8+67&#(3*+)&@L/2*E&6,C&M+,C&N+7C2,F0&:;<O&#87AB$Y!!ZAH$F5C(:![5K!/.?-!! && 3LO!\!385C!D8!O)]7)(I! 3L6!\!385C!D8!65I!

8+D'6,E&0+)*(C&PE&8+/,*)E&Q,R(0*D(,*&S67/(&:;<O&2,&4+)5(F26,&T)+,6&!4UT-&& 8+67&>3*2R2*E&

&& && &&

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`)'H!>'D$A&A)I$I!aV$)J8'Hb!G8C()'HI! ;?:1/1:;/"!!!!!3L6!34)'5!E$DA8C$7@!c!34$@)B5C!38A&,!a#dNME>3b!! ?:;11:2"9:"2-!!!!!3L6!34)'5!E8F$A!d'D$A'5D)8'5C!+$_$C8&@$'D!OD(! ??-:?2;:;."!!!!!E8F$A!!34)'5!<$I87AB$I!E8F$A!G8C()'HI!38!OD(! /".:9?-:0;.!!!!!E8F$A!34)'5!#4$'475!>'$AHK!38!OD(! /?.:2/0:9"0!!!!!3L6:![)')'H:!E8F$A!3NMM3!OD(! ?:;0;:/00:.01!!!!!3L6!3NMM3!37AD)I!S7'()'H!N8!?!EDK!OD(! //":0;9:9-"!!!!!S)'5'B$!3NMM3!S)'5'B$!/.."!OD(! 2;:;9;:29"!!!!!S)'5'B$!3NMM3!S)'5'B$!/.?"!OD(! -2":;-.:9?0!!!!!S)'5'B$!3NMM3!OD(! 705,245,295 3L6!!!+5D5'H!d'D$A'5D)8'5C!E8F$A!6$'$A5D)8'!38!OD(! --:1./:2./!!!!![)')'H:!E8F$A:!3L6!6+!E8F$A!+$_$C8&@$'D!38!OD(! /?":?.-:?.1!!!!!E8F$A!675'H(8'H!>C$BDA)B!E8F$A!+$_$C8&@$'D!38!OD(! ?/?:?9-:;92!!!!!E8F$A!G)()C)!d'(7IDAK!d'D$A'5D)8'5C!+$_$C8&@$'D!OD(! 9:;20:?/9!!!!![)')'H!G75()5'!S7*)'!>'$AHK!38A&!OD(! ??;:12?:1?1!!!!!E8F$A!G75()5'!E8F$A!d'D$A'5D)8'5C!38A&!OD(! ?"1:129:9"?!!!!!E8F$A!G75'$'H!E8F$A!d'D$A'5D)8'5C!d'B! 0;?:"?":/.9!!!!!E8F$A:!3L6!

40 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

d''$A![8'H8C)5!^)D5)!385C!38!OD(! ?"?:09-:"-2!!!!![)')'H!#5'K!G$5_K!>]7)&@$'D!d'D$A'5D)8'5C!G8C()'HI!38!OD(! ?2:?..:9?-!!!!!3L6!#+d3!G75`)'H!E8F$A!G8C()'HI!38!OD(!a'8FY!#+d3!E8F$A!G8C()'HI!38!OD(b! ?-1:1"9:-/9!!!!!E8F$A!LV>%!38!OD(! /9:?;":??0!!!!!3L6!!! !! !!8V(3W&X('/P723& !! !!3>W!%#! /29:09;:-9/!!!!!E8F$A:![)')'H!3>W!%#! ""2:.0":00;!!!!!E8F$A:![)')'H!!! !! !!$(,D6)Y& !! !!+8'H!>'$AHK!%e#! /"?:.-":"?/!!!!!E8F$A!!! !! !!J()D6,E& !! !!>,MN!#>! -:"9?:102:90.!!!!!E8F$A!<=>!%6! /:02-:91;:;?-!!!!![)')'H:!E8F$A!!! !! !!J)((3(& !! !!E7RC)B!E8F$A!38A&!#%! ?.":;.2:2";!!!!!E8F$A:![)')'H!!! !! !!N+,F&T+,F& !! !!3OE!G8C()'HI!OD(! ?:0??:9-.:901!!!!!E8F$A!GU!>C$BDA)B!d'_$ID@$'DI!c!GU!>C$BDA)B!d'_$ID@$'DI!OD(! ?1:"/-:2-.!!!!!E8F$A![8'H8C)5'![)')'H!38A&! ?.:1"/:.29!!!!![)')'H!#487H5'H!S7I45'!<$I87AB$I!6A87&!OD(! ?0.:"0;:2.?!!!!![)')'H!Z')D$(!38!<Z#%O!EO3! 90:/09:.;/!!!!![)')'H!!! !! !!Q,C26& !! !!<$C)5'B$!G8C()'H!Z#%!d'B! ""0:/0;:.;;!!!!!3L6!<$C)5'B$!E8F$A!OD(! "?:1.0:10;!! E8F$A!L5D5!#D$$C!OD(! ".":19;:"22!!!!![)')'H!!! !! !!Q07(&U?&B6,& !! !!#5I8C!S)'5'B)'H!d'D$A'5D)8'5C!EO3! 002:.1.:""1!!!!!S)'5'B$!!! !! !!Q*67E& !! !!>'$C!#&%! -:"01:?"-:9/?!!!!!E8F$A!>'$C!#&%! /.;:/"/:;00!!!!!E8F$A!!! !! !!Z6'6,& !! !!>C$BDA)B!E8F$A!+$_$C8&@$'D!38!OD(! 0"1:??0:-""!!!!!E8F$A!G8J7A)J7!>C$BDA)B!E8F$A!38! /0-:;1;:.?;!!!!!E8F$A!dD8B47!38A&! ?:".1:"-0:/0.!!!!![)')'H![)DI7)!c!38!a%7IDA5C)5b!OD(! ?:;-;:..2:?21!!!!![)')'H!N)&&8'!38J$!c!>'H)'$$A)'H!38!OD(! ?/:.2?:"2"!!!!![)')'H:!E8F$A!MJ)'5F5!>C$BDA)B!E8F$A!38!d'BeL4$! /1:/?2:11/!!!!!E8F$A!#4)J8J7!>C$BDA)B!E8F$A!38!d'B! "":2/2:?9?!!!!!E8F$A!

41 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

!! !! !![/H(DP+/)F& !! !!6C$'B8A$!S)'5'B$!>7A8&$!#%! /.":019:/12!!!!!S)'5'B$!!! !! !!4(*W()76,C0& !! !!>,MN!d'D$A'5D)8'5C!S)'5'B$!VP! ?90:;2-:;";!!!!!S)'5'B$!>'V=!d'D$A'5D)8'5C!S)'5'B$!VP! ?.;:11?:""?!!!!!S)'5'B$!>'$C!S)'5'B$!d'D$A'5D)8'5C!NP! ?:1"?:;0-:1.?!!!!!S)'5'B$!<=>!S)'5'B$!VP! 1/0:12.:?;/!!!!!S)'5'B$!!! !! !!1W272''2,(0& !! !!%R8)D)T!E8F$A!38A&! ?.-:;09:"?9!!!!!E8F$A!#$@)A5A5![)')'H!38A&! -2:"9/:0?-!!!!![)')'H:!E8F$A!!! !! !!1+76,C& !! !!>'$AH5!#%! 0:.00:;"/!!!!!E8F$A!O7R$CIJ)!=$H)$C!V8H(5'J5!#%! 02:21-:;29!!!!![)')'H:!EA8B$II)'H!E6>!E8CIJ5!6A7&5!>'$AH$DKBT'5!#%! "-:22-:1--!!!!!E8F$A:![)')'H!L57A8'!E8CIJ5!>'$AH)5!#%! -;:1/":/1"!!!!!E8F$A:![)')'H!!! !! !!X/0026& !! !!>,MN!<7II)5!f#3! ?/?:12":2."!!!!!E8F$A!>'$C!M6Ug-!Mf#3!a'8F!>'$C!<7II)5b! 11:9/;:2-"!!!!!E8F$A!U7TR5IIJ5K5!L8&C)_'5K5!U8@&5')K5!M%M! ?9:;;/:2?.!!!!![)')'H!!! !! !!#+/*W&>?)236& !! !!#5I8C!OD(! -";:1..:01"!!!!![)')'H:!E8F$A:!3LO!!! !! !!#+/*W&T+)(6& !! !!U8A$5!>C$BDA)B!E8F$A!38A&! ?:.92:911:10/!!!!!E8F$A!U8A$5!>C$BDA)B!E8F$A!38A&! "2:/99:";1!!!!!E8F$A!!! !! !!#5(C(,& !! !!P5DD$'Q5CC!%V! /?/:210:.20!!!!!E8F$A:![)')'H!!! !! !!\W6276,C& !! !!6C8F!>'$AHK!E3O! /.?:1/1:?1/!!!!!E8F$A!L8K8gL45)!38A&!E3O! 2;:"/":1?"!!!!!E8F$A!!! !! !!",2*(C&T2,FC+D& !! !!%B5B)5![)')'H!! ?..:02.:.??! [)')'H!%'HC8!%@$A)B5'!EO3! /:92-:;;-:.0.!!!!![)')'H!%'HC8!%@$A)B5'!35&)D5C!EO3! /9.:909:"-9!!!!![)')'H!VGE!V)CC)D8'!EO3! 2:0;-:..-:129!!!!![)')'H!+A5*!6A87&!EO3! "2/:9";:9";!!!!!E8F$A!>_A5T!EO3! /9;:"?-:299!!!!![)')'H!6C$'B8A$!EO3! 2:1.-:?--:--9!!!!![)')'H!N$F!=8AC(!<$I87AB$I!EO3! 9:"?0:9"?!!!!![)')'H!

42 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

#B8DD)I4!E8F$A!OD(! /"?:.;.:?1.!!!!!E8F$A!!! !! !!",2*(C&#*6*(0& !! !!%>#!38A&eP%! "02:;0/:19.!!!!!E8F$A!%@$A$'!38A&! 029:-/2:--/!!!!!E8F$A!%@$A$'!dCC)'8)I!38! -/0:-90:2";!!!!!E8F$A!%@$A)B5'!>C$BDA)B!E8F$A!38!d'B! ?:?21:;;.:"?9!!!!!E8F$A!%&&5C5B4)5'!E8F$A!38! ?92:191:"1.!!!!!E8F$A!+8@)')8'!<$I87AB$I!d'BeP%! /:09?:../:11.!!!!!E8F$A!+8@)')8'!<$I87AB$I!d'BeP%! 0?-:;./:11.!!!!!E8F$A!+L>!>'$AHK!38! -0/:;"?:901!!!!!E8F$A!+7J$!>'$AHK!35A8C)'5I!OO3! -.2:"..:2-;!!!!!E8F$A!+7J$!>'$AHK!38A&! ":"09:/-.:?.0!!!!!E8F$A!+7J$!>'$AHK!38A&! 1/?:.?-:-.-!!!!!E8F$A!+7J$!>'$AHK!SC8A)(5!d'B! ?2-:9..:29.!!!!!E8F$A!+7J$!>'$AHK!M4)8!d'B! 2":10":-22!!!!!E8F$A!+7J$!>'$AHK!EA8HA$II!d'B! 010:2;.:/29!!!!!E8F$A!S)AID>'$AHK!38A&! 2-":1/2:112!!!!!E8F$A!S)AID>'$AHK!#8C7D)8'I!38A&! /.:12?:2;"!!!!!E8F$A!6$8AH)5!E8F$A!38! -9;:91/:?1;!!!!!E8F$A!6A$5D!EC5)'I!>'$AHK!d'B! /29:;;?:/1/!!!!!E8F$A!6A$5D!<)_$A!>'$AHK! "2:0..:"?0!!!!!E8F$A!d+%3M<E!d'B! ?0/:/0":"/.!!!!!E8F$A!d'D$HAKI!>'$AHK!6A87&!d'B! "-.:0;/:1"-!!!!!E8F$A![)(5@$A)B5'!>'$AHK!38! 0./:/;1:2;/!!!!!E8F$A![)(5@$A)B5'!S7'()'H!OO3! 0;:-?0:;;2!!!!!E8F$A!M4)8!E8F$A!38! ?/;:02":2"2!!!!!E8F$A:![)')'H!E5B)Q)38A&! ?:/?/:209:;22!!!!!E8F$A!EEO!38A&! 2--:/-9:.--!!!!!E8F$A:![)')'H!EEO!>C$BDA)B!ZD)C)D)$I!38A&! /.?:1//:/9-!!!!!E8F$A:![)')'H! #87D4$A'!38eL4$! ?:22.:0;;:/;.!!!!!E8F$A!#87D4F$ID$A'!>C$BDA)B!E8F$A!38! "":?1;:2.2!!!!!E8F$A!=$ID5A!>'$AHK!d'B! ".0:"92:.".!!!!!E8F$A!=)IB8'I)'!>'$AHK!38A&! 9?":29.:?91!!!!!E8F$A!=)IB8'I)'!>C$BDA)B!E8F$A!38! ?;?:2"?://1!!!!!E8F$A!XB$C!>'$AHK!d'B! 1?1:/2?:;//!!!!!E8F$A!XB$C!>'$AHK!d'B! ?01:""9:9;.!!!!!E8F$A!!! !! !!S2(*,6D& !! !!E45!O5)!L4$A@5C!E8F$A!f#3! /1:22":02/!!!!!E8F$A!!! !! !!\U\>[&& ]=A];<A];:A^^^&&&&&&&

Appendix E IEEFA Published Works, Bios, and Significant

43 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

Achievements IEEFA Published Works International $01=#c09%>/109\#c%><7#c%(?#%)#5+,#'()?9#L)6092&0)29-#W8/+,#NOPS# -#512%F0/#NOPD#

c0&%20#@/%980129\#W#3+)()1+(,#W M%(,#I -#;%60&F0/#NOP[#

M%(,#L)?+(\#c>))+)<#%)#Y&82"f-#'0820&F0/#NOP[! -#b>)0#NOP[! /(20#c092/>12>/+)<-#C("#NOPS## !/+03+)<#;%20\#I,%F(,#Y)0/<"#C(/=029#+)#$/()9+2+%)-#b()>(/"#NOPS# !/+03+)<#;%20\#$70#;(//(F/+#M%(,#'0(&#I(9#@/%X012-#.010&F0/#NOPD## -#512%F0/#NOPD# !/+03+)<#;%20\#4%99+,#4>0,9-#Y)0/<"#$/()9+2+%)#m#c+9=-#b>,"#NOPD# !/+03+)<#;%20\#4%99+,#3>0,9-#Y)0/<"#$/()9+2+%)#m#c+9=-#b>)0#NOPD# !/+03+)<#;%20\#$70/&(,#M%(,#5>2,%%=-#C("#NOPD# !/+03+)<#;%20\#L)?+(#@%:0/#@/+109-#C("#NOPD# !/+03+)<#;%20\#ZLMY$-#C("#NOPD# !/+03+)<#;%20\#4%99+,#4>0,9-#Y)0/<"#$/()9+2+%)#m#c+9=-#W8/+,#NOPD#

International commentary %(,#@/%X012#L)2%#M%,,(20/(,#.(&(<0-#C("#NOPS# >/109-#(#$%><7#c%(?#%)#5+,#'()?9#L)6092&0)29-#W8/+,#NOPS# -#W8/+,#NOPS# -#W8/+,#NOPS#

-#W8/+,#NOPS# -#C(/17#NOPS# 4/%&#270#4%99+,J4>0,#M0)20/#%3#270#Z%/,?-#(#M(,,#2%#c0)0:(F,09#()?#Y)0/<"#Y33+1+0)1"-#C(/17#NOPS# -#C(/17#NOPS# $70#c0)0:(F,0JY)0/<"#b><<0/)(>2#I(+)9#C%&0)2>&-#40F/>(/"#NOPS## -#40F/>(/"#NOPS# -#40F/>(/"#NOPS# c%809-#40F/>(/"#NOPS# -#b()>(/"#NOPS# 9+,#4>0,9-#b()>(/"#NOPS# C%/0#Y6+?0)10#%3#(#4(92JM7()<+)<#Y)0/<"#Y1%)%&"-#b()>(/"#NOPS# -#b()>(/"#NOPS# -#b()>(/"#NOPS# -#.010&F0/#NOPD# d(29#533#2%#'%1+020#I0)0/(,0#3%/#'2088+)<#!(1=#4/%&#I(,+,00#M%(,-#.010&F0/#NOPD# -#.010&F0/#NOPD#

44 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

$70#'%,(/#YH8/099-#;%60&F0/#NOPD## UG'GJM7+)(#.0(,#'><<0929#(#;0:#Z("#4%/:(/?#3%/#M%(,#@/%?>10/9-#;%60&F0/#NOPD# 5>/#$(/J'()?9#5>2,%%=-#@(/2#P\#M%92,"#588%9+2+%)-#+)#@0/802>+2"-#;%60&F0/#NOPD# L)?+(#'2(/29#.%:)#(#!%,?#@(27#2%#(#;0:#Y)0/<"#Y1%)%&"-#;%60&F0/#NOPD## $70#M(90#3%/#'&(/2#Y)0/<"#L)6092+)<-#512%F0/#NOPD#

Related U.S. publications ;lM#()?#;l'#@0)9+%)#4>)?9#'7%>,?#.+6092#M%(,#'2%1=9\#W#'7/+)=+)<#L)?>92/"-#Z0(=#U89+?0-#()?#Z/%)<#%)#M,+&(20#M7()<0-#C("#NOPD#

C0&%J#c098%)90#2%#270#.08(/2&0)2#%3#L)20/+%/-#533+10#%3#L)98012%/#I0)0/(,#W>?+2#%)#40?0/(,#M%(,#V0(9+)<#@/%</(&-#b>,"#NOP[#

I/0(2#I+60(:("\#W,&%92#`[O#!+,,+%)#+)#c060)>09#V%92#2%#$ I 40?0/(,,"#5:)0?#M%(,#+)#@%:?0/#c+60/#!(9+)-#NOPN!

M%92#%3#M%(,#4/%&#C+)0J #W8/+,#NOPS# V032#+)#270#.(/=\#d%:#270#W,(F(&(#@>F,+1#'0/6+10#M%&&+99+%)#C(=09#M>92%&0/9#@("#!+,,+%)9#%3#.%,,(/9#3%/#W,(F(&(#@%:0/#L)6092&0)29#:+27%>2#W)"#C0()+)<3>,#@>F,+1#c06+0:#%/#L)6%,60&0)2-#40F/>(/"#NOPS##

#V0220/#2%#270#W,(9=(#.08(/2&0)2#%3#;(2>/(,#c09%>/109#/0<(/?+)<#M7>+2)(#M%(,#C+)0-#W8/+,#NOPS# NOPD# #W)%270/#l0(/#%3#U)&02#@/%&+909#3%/#270#@/(+/+0#'2(20#Y)0/<"#M(&8>9Q!40F/>(/"-#NOPS# %8%90?#W1K>+9+2+%)#%3#@081%#d%,?+)<9-#b()>(/"#NOPS#

;%#;00?#3%/#;0:#UG'G#M%(,#@%/29\#.(2(#'7%:9#560/9>88,"#+)#M(8(1+2"-#;%60&F0/#NOPD# NO#4%>/27Jh>(/20/#h>092+%)9#3%/#@%:?0/#c+60/#!(9+)#M%(,#@/%?>10/9-#;%60&F0/#NOPD# 4+/92Y)0/<"#'00=9#(#'>F9+?+*0?#$>/)(/%>)?-#512%F0/#NOPD# c08%/2\#;%#06+?0)10#%3#(#2>/)(/%>)?#(2#@/(+/+0#'2(20-#'0820&F0/#NOPD# .>=0#Y)0/<"#()?#M%929#%3#M%(,#W97#M,0()>8-#b>)0#NOPD# W?,4%&@!K&,&0#4+,-!A4#4+/,(!7/#%!P%#)&#*&05F+3-#b()>(/"#NOPD#

-#b()>(/"#NOPD# Y)0/<"#4>2>/0#d%,?+)<9#()?#C+)+)<#c01,(&(2+%)#!%)?9#+)#$0H(9-#512%F0/#NOP[# -#C(/17#NOP[! 90#%3#Y)0/<"#4>2>/0#d%,?+)<9-#40F/>(/"#NOP[!

W#$0H(9#Y,012/+1#M(8(1+2"#C(/=02\#$70#Z/%)<#$%%,#3%/#(#c0(,#@/%F,0&-#40F/>(/"#NOP[! $70#@/(+/+0#'2(20#M%(,#@,()2\#$70#c0(,+2"#69G#270#@/%&+90-#W><>92#NOPN!

U.S. Commentary -#W8/+,#NOPS! -#W8/+,#NOPS! YH8%/2JC(/=02#.%:)2>/)#'80,,9#$/%>F,0#3%/#@/%8%90?#W,(9=(#M%(,#C+)0-##W8/+,#NOPS! $70#$/>27#WF%>2#@/(+/+0#'2(20#Y)0/<"#M(&8>9#A@(/2#DB\#$70/0#W/0#Z("9#5>2#%3#$7+9#!(?#.0(,-#W8/+,#NOPS!

$70#$/>27#WF -#W8/+,#NOPS! C+99%>/+-#C(/17#NOPS!

M%(,#@/%?>10/9\#W)%270/#l0(/#5,?0/#()?#.0080/#+)#.0F2-#C(/17#NOPS!

45 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

UG'G#M%(,J@0(F%?"-#C(/17#NOPS!

M,%>?#@0(=#Y)0/<"\#L)#270#!,(1=-#F>2#@/01(/+%>9,"#'%-#40F/>(/"#NOPS! Z7(2#C+<72#d(880)#2%#W,87(#;(2>/(,#c09%>/109#+)#NOPSf-#40F/>(/"#NOPS! W/17#M%(,-#270#'01%)?J!+<<092#UG'G#@/%?>10/-#L9#+)#$/%>F,0-#40F/>(/"#NOPS! Z0(=#NOPD#;>&F0/9#Z%/90)#()#W,/0(?"#!(?#5>2,%%=#3%/#M%(,#M%&8()+09-#40F/>(/"#NOPS! L)#270#;0:#Y)0/<"#Y1%)%&"-#@>F,+1#W11%>)2(F+,+2"#L9#(#C(/=02#4%/10-#b()>(/"#NOPS#! C()"#.+33+1>,2#h>(/20/9#W70(?#3%/#UG'G#M%(,#@/%?>10/9-#b()>(/"#NOPS! W#'7(=0%>2#!0<+)9#3%/#UG'G#'7(,0J5+,#@/%?>10/9-#b()>(/"#NOPS! W)%270/#.+33+1>,2#l0(/#W70(?#3%/#UG'G#M%(,#@/%?>10/9-#b()>(/"#NOPS! 4+)()109-#.010&F0/#NOPD!

S#c0(9%)9#M%(,#M%&8()+09#'7%>,?#@("#YH8%/2#c%"(,2+09#;%:-#.010&F0/#NOPD! -#.010&F0/#NOPD! @0(F%?"-#(#V%92#4%/&0/#V0(?0/-#C+9909#270#;0:JY)0/<"#!%(2-#.010&F0/#NOPD! S#c0(9%)9#M%(,#M%&8()+09#'7%>,?#@("#YH8%/2#c%"(,2+09#%)#40?0/(,#V0(909#;%:-#.010&F0/#NOPD! Y)0/<"J J'>/0#!029-#.010&F0/#NOPD! Jc%"(,2+09#V%%87%,0-#;%60&F0/#NOPD#! W#@>F,+1#Z(920#%3#C%)0"-#!%27#@>F,+1#()?#@/+6(20-#;%60&F0/#NOPD! L)#@/(+90#%3#(#;%2(F,0#UG'G#.08(/2&0)2#%3#Y)0/<"#@/%</(&-#;%60&F0/#NOPD! M%(,JM%&8()"#.0F2#I/%:9#L)1/0(9+)<,"#c+9="-#512%F0/#NOPD! LYY4W# -#512%F0/#NOPD! -#512%F0/#NOPD! -#512%F0/#NOPD! -#512%F0/#NOPD! -#512%F0/#NOPD!

#

$70#8>F,+1(2+%)9#(F%60#:0/0#(>27%/0?#F"#6(/+%>9#LYY4W#80/9%))0,-#:7%90#F+%</(87+09#(/0#,+920?#F0,%:G#$%#3+)?#270#(>27%/#%3#0(17#+)?+6+?>(,#8+010-#1,+1=#%)#270#/08%/2#,+)=G#

#V+0&G4/0!/6!M+,#,G&!"/>!A#,U+%%/#7(9#[O#"0(/9#%3#0H80/+0)10#+)#8>F,+1#()?#8/+6(20#3+)()10-#+)1,>?+)<#(9#(#3+/92#?08>2"#1%&82/%,,0/#%3#;0:#l%/=#'2(20-#:70/0#70#70,?#%60/9+<72#%60/#(#`PST#F+,,+%)#80)9+%)#3>)?#()?#`NOO#F+,,+%)#+)#&>)+1+8(,#F%)?#8/%</(&9G#!

V+0&G4/0!/6!D&5/?0G&!P%#,,+,-!V#X+*!AGF%+55&%#+9#(#,%)<J2+&0#1%)9>,2()2-#0H80/2#:+2)099-#()?#(22%/)0"#%)#0)<+)00/+)<#()?#01%)%&+1#+99>09#/0,(20?#2%#0)0/<"G#d0#7(9#2092+3+0?#+)#&%/0#27()#POO#1%>/2#8/%100?+)<9#%/#1(909#F03%/0#/0<>,(2%/"#F%?+09G#

V+0&G4/0!/6!1,&0-@!M+,#,G&!A4?*+&5Q!C?540#%+#Q!"+>!O?GB%&@#7(9#NS#"0(/9#%3#3+)()1+(,#&(/=029#0H80/+0)10-#9801+(,+*+)<#+)#0K>+2"#6(,>(2+%)-#+)1,>?+)<#(9#(#2%8J/(20?#()(,"92#()?#(9#1%J3%>)?0/#()?#&()(<+)<#?+/012%/#%3#W/=H#L)6092&0)2#C()(<0&0)2G#

'11MC!M&%%/J!7#4F@!I?,B&%#+9#()#+)?080)?0)2#1%)9>,2()2#:+27#^>)=0,#Y)0/<"#c090(/17G#'70#7(9#2092+3+0?#F03%/0#/0<>,(2%/"#F%?+09#()?#:(9#(#90)+%/#/090(/17#(99%1+(20#(2#V(:/0)10#!0/=0,0"#;(2+%)(,#V(F%/(2%/"G#

#

D&-?%#4/0@!7/,5?%4#,4!)+5#!C,,&!W#>+%4/,#7(9#8/%6+?0?#,0<(,#9>88%/2#2%#'=(??0)#W/89#C0(<70/#',(20#m#4,%&#()?#270#4+)()1+(,#L)92+2>2+%)9#I/%>8#%3#.(6+9#@%,=#m#Z(/?:0,,G#'70#+9#(#&0&F0/#%3#270#,0<(,#F(/#+)#;0:#l%/=-#C(/",()?-#()?#270#.+92/+12#%3#M%,>&F+(G

46 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

M+,#,G+#%!7/,5?%4#,4!V&$/0#F!)#J0&,G&!D/-&05#:%/=9#%)#270#UG'G#YH2/(12+60#L)?>92/+09#$/()98(/0)1"#L)+2+(2+60-#()?#7(9#90/60?#%)#270#W?6+9%/"#M%>)1+,#%3#270#.(,,(9#40?#()?#270#:%/=+)<#</%>8#3%/#270#UG'G#

#

#

IEEFA Significant Achievements LYY4W#7(9#?060,%80?#()?#/03+)0?#()#()(,"2+1(,#3/(&0:%/=#3%/#?020/&+)+)<#270#01%)%&+1#6+(F+,+2"#%3#F%27#8/%8%90?#()?#%80/(2+)<#1%(,J3+/0?#8%:0/#8,()29#+)#270#UG'G#5>/#/090(/17#,0?#2%#270#1()10,,(2+%)#%3#8/%8%90?#1%(,#8,()29#+)#L%:(-#57+%-#Z+91%)9+)-#4,%/+?(-#'%>27#M(/%,+)(-#;%/27#M(/%,+)(-#'%>27#.(=%2(-#L,,+)%+9-#C+17+<()-#Z092#e+/<+)+(-#I0%/<+(-#()?#^0)2>1="G##Z0#7(60#(,9%#?%1>&0)20?#270#,+=0,"#1,%9>/09#%3#8,()29#+)#M%))012+1>2-#;0:#l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

03%/&9#()?#+)6092+<(2+%)9#%3#+99>09#/0,(20?#2%#1%(,#6(,>(2+%)-#1%(,#/%"(,2+09-#()?#1%(,#/01,(&(2+%)#F%)?9#+)#270#UG'G#5>/#()(,"9+9#%3#270#>)?0/6(,>(2+%)#%3#1%(,#+)#270#30?0/(,#,0(9+)<#8/%</(&#+)#270#@%:?0/#c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c+60/#!(9+)#1%(,G#

LYY4W#7(9#F00)#270#8/+&(/"#%/<()+*(2+%)#()(,"*+)<#()?#?%1>&0)2+)<#270#3+)()1+(,#3,(:9#+)#8,()9#2%#1%(,#2%#L)?+(#27/%><7#8%/29#+)#270#I/0(2#!(//+0/#c003G#Z0#7(60#+99>0?#(#90/+09#%3#/08%/29#%)#270#8/%8%90?#&+)+)<#8/%X0129#()?#270#3+)()1+(,#1+/1>&92()109#%3#270#1%&8()+09#8/%8%9+)<#2%#F>+,?#270&-#()?#%>/#:%/=#7(9#F00)#>90?#(9#270#F(9+9#3%/#(#)>&F0/#%3#&(X%/#F()=9#(/%>)?#270#:%/,?#2%#8,0?<0#270"#:+,,#)%2#3+)()10#27090#?060,%8&0)29G##

LYY4W#+9#(#/01%<)+*0?#%8+)+%)#,0(?0/#%)#+99>09#/0<(/?+)<#270#0)0/<"#01%)%&"#()?#<,%F(,#1%(,#&(/=029G#Z0#(/0#K>%20?#/0<>,(/,"#F"#&(X%/#)0:9#%/<()+*(2+%)9#27(2#+)1,>?0#270#W99%1+(20?#@/099-#!,%%&F0/<#;0:9-#$7%&89%)#c0>20/9-#270#Z(,,#'2/002#b%>/)(,-#270#;0:#l%/=#$+&09-#270#Z(97+)<2%)#@%92-#270#M7+1(<%#$/+F>)0-#270#I>(/?+()-#270#;(2+%)(,#b%>/)(,-#';V#4+)()1+(,-#&%92#&(X%/#)0:9#%>2,029#+)#W>92/(,+(-#9060/(,#0)0/<"J&(/=02#F,%<9#%3#)%20-#()?#&()"#/0<+%)(,#8>F,+1(2+%)9#+)#270#UG'G#()?#(F/%(?G##

LYY4W#8/%6+?09#3+)()1+(,J,+20/(1"#2/(+)+)<#3%/#0)6+/%)&0)2(,#%/<()+*(2+%)9-#(22%/)0"9-#()?#+)20/0920?#1+2+*0)9#:7%#(/0#:%/=+)<#%)#0)0/<"J2/(+)+)<#(2#270#;0:#l%/=#U)+60/9+2"#'17%%,#%3#V(:#30(2>/09#8/090)2(2+%)9#F"#980(=0/9#3/%&#,0(?+)<#3+)()1+(,#+)92+2>2+%)9-#+)1,>?+)<#!0/)920+)#c090(/17#I/%>8-#b@#C%/<()#M7(90-#U!'#

47 !

The Case for Divesting Coal from the Norwegian Government Pension Fund Global

V>&+)>9#L)6092&0)2-#()?#%270/9G#$70#C(/17#NOPS#3%>/J?("#1%)30/0)10#?/0:#NSO#(220)?009#3/%&#[O#92(209#()?#PT#%270/#1%>)2/+09-#+)1,>?+)<#L)?+(-#M7+)(-#$7(+,()?-#'%>27#W3/+1(-#e+02)(&-#!()<,(?097-#L)?%)09+(-#W>92/(,+(-#U)+20?#^+)<?%&-#4/()10-#b(8()-#@7+,+88+)09-#M()(?(-#L2(,"-#I0/&()"-#()?#$>/=0"G#

!!

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