New Danish Climate Investment Agreement  

Worth Billions


Yesterday, three Danish pension funds, the investment fund Dansk Vækstkapital and IFU, Investment Fund for Developing Countries, entered into an agreement to invest DKK1.2bn (approx. 220 million USD) in the Danish Climate Investment Fund, which is expected to contribute to investments worth DKK 8-9bn in developing countries and emerging markets. The fund must ensure a competitive return for the investors.

In a new ground-breaking public/private partnership, a number of institutional investors and IFU on behalf of the Danish state have entered into an agreement worth billions to create green growth in developing countries and contribute to meeting the COP 15 goal to raise USD 100bn a year from 2020 for climate investments in developing countries. Denmark thereby takes a leading position when it comes to raising climate financing, which is decisive to ensure the necessary green transition in the developing countries and reducing global warming.

Danish climate technology to reduce global warming

Through project investments in developing countries and emerging markets the fund will contribute to reducing global warming and promote the transfer of Danish climate technology. Furthermore, the Danish Climate Investment Fund will provide its investors with a competitive return. The annual return is expected to be 12 per cent of the invested capital.

The Danish Climate Investment Fund is expected to assist small and medium-sized companies in gaining access to new countries and markets, either directly or as suppliers to larger climate projects.

The Danish Climate Investment Fund will invest in projects that directly or indirectly contribute to reducing greenhouse gas emissions, and in all the so-called DAC countries. Geographically the fund covers almost all countries in Latin America and Africa, the majority of the countries in Asia and a few countries in Europe.

Denmark takes leading role in green transition

IFU is the fund manager of the Danish Climate Investment Fund. IFU has invested in 800 project companies in 85 developing countries.

- “I am proud that we are able to present an agreement with a number of private investors. To reach the goal to raise USD 100bn annually from 2020 it is crucial that the private sector becomes involved in the climate agenda. With this initiative Denmark takes a leading role when it comes to a green transition in the developing countries, which will contribute to reducing global warming and hopefully be an inspiration to others,” says Martin Lidegaard, Minister for Climate, Energy and Building.

Unique public-private partnership

- “The Danish Climate Investment Fund is a completely new type of public/private partnership where state funds and private pension investments work together to benefit from the competences that Danish companies have in the area of climate and energy, and where there is great demand and market potential in many developing countries,” says Torben Möger Pedersen, managing director of the pension fund PensionDanmark.


Green Capital 2014

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