With the launch of a new green sovereign bond, Denmark is the first country in the world to issue government bonds in alignment with the EU Green Bond Standard. The issuance marks a new chapter in the development of green capital markets and underlines Denmark’s continued commitment to green finance as a key driver of the green transition.

The new Danish green bond is the first sovereign bond globally to comply with the voluntary EU Green Bond Standard, which came into effect in December 2024. Proceeds from the bond will be earmarked for activities that contribute significantly to the green transition – including transport sector decarbonisation, renewable energy infrastructure, and land-use transformation under the Green Denmark Agreement.

“In Denmark, we must continuously strive to lead the green transition of our economy and society. That can mean introducing a binding climate law or leading the way in implementing carbon taxes. But the green transition also requires financing – both for states and the private sector. Green bonds contribute to the development of a well-integrated and efficient green capital market, which plays an important role in directing investments toward sustainable projects. This can benefit Danish companies when financing their green projects.” Nicolai Wammen, Denmark’s Minister for Finance.

“Denmark already took the lead with the first green sovereign bond programme, and we continue to do so by adhering to the latest standards in green finance. With the new green sovereign bond programme, the state demonstrates how the new EU standard for green bonds can be applied in practice – also by other states.”

The programme builds on Denmark’s first green bond framework, launched in 2021, which already applied many of the principles from the draft EU standard at the time. With the final standard now in effect, the new framework is fully aligned with the EU taxonomy and includes a Kingdom of Denmark EU Green Bond factsheet to guide upcoming issuances.

An independent pre-issuance review by Sustainable Fitch confirms that the new programme complies with both the EU Green Bond Standard and the Green Bond Principles of the International Capital Markets Association (ICMA).

As with previous green bonds, the new issuance will follow a twin-bond structure, matching the financial characteristics of existing government bonds. Investor outreach will take place in autumn 2025, with further details to be published by Danmarks Nationalbank.

Denmark’s approach to green finance

Denmark’s position as the first country to issue a sovereign bond under the EU Green Bond Standard builds on decades of experience with financing the green transition. Since the 1970s, the country has developed strong public-private collaboration models, stable framework conditions, and a proactive approach to green finance.

Denmark has used green finance as a lever to support everything from offshore wind and Power-to-X infrastructure to energy-efficient buildings and biodiversity projects. The financial sector has played a key role through active ownership, pension fund investments, and targeted financing tools such as green loans and ESG KPI-linked lending.

Efforts have also extended internationally. Through institutions like the Investment Fund for Developing Countries (IFU) and the Export and Investment Fund of Denmark (EIFO), Denmark has helped mobilise private capital to fund renewable energy and climate adaptation in developing markets. At the same time, regulatory clarity, transparency, and the integration of EU taxonomy have helped consolidate Denmark’s role as a financial hub for sustainable investments.