Financing the green transition
With pioneering pension funds, asset managers and public investors, Denmark has long led the way in ESG and green financing.
Denmark has extensive experience in financing the green transition, both nationally and internationally. Since the late 1970s, Danish entrepreneurs, innovators, and successive governments have focused on developing and promoting green technologies, including renewable energy, water and energy efficiency, and the transition away from fossil fuels.
The Danish insurance and pension industry manages EUR 535 billion on behalf of Danish insurance and pension customers—one of the world’s largest pension asset pools relative to GDP, with approximately two-thirds invested abroad. While the primary objective of pension funds and asset managers remains generating returns for their customers, there is a growing commitment to investing responsibly and sustainably, addressing Environmental, Social, and Governance (ESG) risks.
Denmark was the first UN member to offer “loss and damage” climate funding in 2022 to support climate adaptation and initiatives aimed at averting, minimising, and addressing climate-induced loss and damage in developing countries. This commitment continued at COP28 last year, where Denmark contributed USD 25 million to a newly established fund for loss and damage, aimed at supporting countries affected by sudden climate-induced disasters.