Accounting for only 0.1 percent of global greenhouse gases, Denmark’s direct CO2 footprint is rather small. However, there is huge potential for accelerating the global green transition by sharing some of the experiences and learnings that have enabled Denmark to transform its energy systems
from black to green whilst ensuring economic growth.

Pioneering green finance: A blueprint for sustainable investments

One of the most valuable insights relates to how Denmark has developed a subsidy-free competitive market for offshore wind through government initiatives, private sector engagement, and investments from the financial sector. This was achieved through clear regulatory and stable framework conditions, as well as collaboration between public and private actors and research institutions. Pension funds also played a vital role in the development of the industry, making unusually bold forays into offshore wind projects prior to their construction. These investments not only fundamentally reshaped the risk landscape of investments in offshore wind farms, but also catalysed a transformative shift in how green initiatives can be financed.

Accelerating the global green transition

In 2019, Danish pension funds (as the first national industry in the world) made a collective pledge at the UN General Assembly to invest an additional EUR 45 billion (USD 40 billion) in clean energy technology (SDG 7) to reach a total of EUR 63 billion (USD 66.5 billion) by 2030. The latest progress assessment shows that pension fund investments were well on track in 2022, having added a total of EUR 15 billion (USD 16 billion) since 2019. The announcement was followed by the creation of the Climate Investment Coalition (CIC), uniting the Danish Government and the pension fund sector to spur private green energy and climate investments internationally towards 2030. Leading the ambition to accelerate the global green transition are AIP and Copenhagen Infrastructure Partners (CIP), two institutional investors who have invested heavily in global renewable projects over the past decade.

Together with Danish pension funds, CIP and AIP have made substantial capital commitments and actively invested in green energy projects. Their long-term investment approach aligns with sustainability goals, ensuring stable returns while actively supporting the transition to a greener economy. AIP and CIP have specialised in planning and realising such large-scale projects. They attract and collect billions of Euros from a wide range of investors from around the world to help make large-scale green projects possible. The two investors also contribute to the transition by working together and establishing cooperation between wind turbine producers and utility/power companies across the world.