The world’s largest sovereign wealth fund has been advised by a committee from its controlling parliament to further divest from coal.

A key parliamentary committee has told Norway‘s $900bn sovereign wealth fund to cut its exposure to the global coal industry and sell stakes in firms that focus on the sector.
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The fund, managed by the central bank, would make the actual divestment decisions, also taking into account if companies plan to reduce their coal exposure.

The new exclusion criteria would be applicable to producers, such as mining firms, and consumers, such as coal-fired power generators, the committee said.

Reuters reports that the value of the shares that will be divested could be as much as $5.5bn, including stakes in big European and US power companies including Duke Energy Corp, RWE AG , American Electric Power Co Inc and Dominion Resources.

The finance committee agreed in a bipartisan motion that the fund, which owns about 1.3 percent of all listed companies globally, should sell stakes in firms that generate more than 30 percent of their output or revenues from coal-related activities.

Already under pressure from Norway’s political establishment, the fund has been selling down its coal portfolio and said its holdings were already small.

The law still needs to be approved by parliament.