Insurance and Pension Denmark CEO, Kent Damsgaard, has said the pensions industry is ready to support the country’s move to electric cars with investments in the Danish electricity grid.

The statement follows the proposal by the Danish government to increase the number of electric cars on the roads in Denmark to 500,000 by 2030. It hopes the move will contribute towards achieving the goal of a 70 per cent CO2 reduction by 2030.

Insurance and Pension Denmark said the industry is ready with the capital to invest in the infrastructure if a sensible and stable framework is set.

“It is necessary that we promote far more environmentally friendly cars, and this requires massive investments in energy infrastructure. The Danish pension industry is ready to look at these investments,” Damsgaard stated.

“Massive investments, however, require a stable framework to be established. We believe that public-private partnership (PPP) models can be the way forward, where private investors contribute capital and execution, while the ownership of the critical infrastructure at the same time remains public.”

Better regulation of the electricity grid is one of the recommendations in the report from the Financial Sector's climate partnership.

Intense negotiations are now expected between the government and the parliamentary parties, which may lead to an increased goal in terms of the numbers of electric cars on the roads, up from 500,000.

Damsgaard said it is difficult to predict what the current goal will be, but what is certain is that the “energy infrastructure will need massive investments to be able to support the increase, and those investments are interesting for the Danish pension industry”.

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