Denmark will establish a nearly $1 billion green fund to attract private capital to reducing energy consumption and fund renewable energy projects.
The new green energy fund is the result of a new deal in the Danish parliament, and will provide loans to companies and organizations seeking to invest in energy efficiency in Denmark. This means that businesses located in Denmark can apply for state guaranteed loans and financing of green projects, e.g. investing in lowering energy consumption and higher energy efficiency.
The fund will initially provide 2 billion kroner ($365 million) in government guarantees, with the financing mainly coming from pension funds.
"We are giving Denmark a green injection," said Bjarne Corydon, Denmark’s finance minister, on reaching the agreement. "This won't just benefit the environment; it will also strengthen the leading position of our business sector within environment and climate”.
Under the deal, another 3 billion kroner in government guarantees can be added in a later phase, making the fund total almost 1 billion US Dollars. As part of the same deal establishing the Green Investment Fund, a “green innovation pool” of almost $4 million was set up, in order to finance small and medium-sized companies working with innovative energy- and climate solutions, as well as a new “innovation forum” that will counsel the government on green technologies.