Recommendation 4

The NWF is not a conventional sovereign wealth fund that invests wealth generated from natural resources to benefit future generations. Therefore its name, the National Wealth Fund, could be misleading. The NWF is financed by the Government from taxation and borrowing, which means that its investments are likely to attract public, political and media scrutiny and that the Government may face pressure to privatise it. Despite those challenges, the success of the NWF’s forerunner, the Green Investment Bank, in stimulating the offshore wind market while generating returns provides 20 a reason for cautious optimism that the NWF will deliver its investment priorities in relation to clean energy. However, the current NWF’s size could limit its strategic impact on economic growth. (Conclusion, Paragraph 31)