Danish parliament agrees new DKK 53bn green fund

The Danish government, alongside the Liberal Party, the Socialist People's Party, the Radical Left, the Unity List and the Conservative People's Party, has agreed to establish a new green fund of DKK 53bn.

It aims for the fund to speed up the green transition between 2024-2040.

The state climate fund could pave the way for more private investments in, among other things, new green technologies, Danish pension fund PKS CEO, Jon Johnson, stated.

The agreement was praised by Johnsen as he hopes that it will be possible for pension funds, among others, to invest together with the new fund, so that public and private actors in collaboration can contribute to Denmark advancing further in the technological green field.

Johnsen described the agreement as “ambitious” and believed it will contribute significantly to the green transition in Denmark, but also suggested that by incorporating private actors such as pension funds into the collaboration with the fund, even more impetus can be given to the development.

Johnsen commented: "We have the knowledge, ambitions and capital to turn Denmark into a green Silicon Valley, so it's just a matter of getting started.

“By collaborating across public actors and private investors, we can share the risk and make it easier for us in the pension sector to make risky, but also absolutely necessary investments in the green technologies of the next generations.

"It is a key part of PKA's DNA to invest greenly and preferably in collaboration with other actors. Back in 2011, we invested the Anholt offshore wind farm, where we just shared the risk with the state and together boosted Danish offshore wind.

“We are happy to do this again on new investments, if we can find the right projects with the right risk levels.”

Today, PKA has over 10 per cent of its investments placed in green projects and aspires to raise it to 15 per cent by 2025 and 20 per cent by 2030.

Forsikring & Pension CEO, Kent Damsgaard, also praised the creation of the green fund: “We are clearly positive about the creation of a green fund, and at the same time the financing is well and truly thought out.

“This means that more ordinary employees can get more out of saving, and we also release money to the state which can be brought into play for green investments now and here.

“With the new green fund, the state's financing can play together with and promote other investments in, for example, new green technologies - this also applies to a very high degree to the many green investments that come from the Danish pension savers, if we think about it together. We look forward to collaborating on this.”

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