At COP30 in Belém, Denmark has reinforced its international climate commitments with a new USD 100 million guarantee aimed at accelerating the green transition in the Amazon and Central America. The guarantee was officially announced by Denmark’s Climate Ambassador, Ole Thonke, and will be issued through Impact Fund Denmark on behalf of the Danish state.

The contribution is part of a Nordic partnership with the Inter-American Development Bank (IDB), which includes an additional USD 50 million each from Norway and Sweden. In total, the USD 200 million guarantee facility is expected to mobilise up to USD 780 million in new climate finance.

The funds will target solar and wind energy, storage technologies and electric transport in some of the world’s most energy-poor regions. By leveraging public credit ratings to de-risk investments, the guarantee enables IDB to offer loans for green projects that would otherwise go unfunded.

“This contribution will mobilise USD 400 million in a new lending programme for countries in the region to accelerate the energy transition. Denmark’s actions underline our commitment to go the extra mile.” Ole Thonke, Denmark’s Climate Ambassador.

The investments are expected to significantly improve energy access, create thousands of local jobs and support climate resilience in a region facing growing environmental and economic pressures.

Denmark increasingly uses guarantees as a strategic tool to mobilise private capital for global climate action. Through Impact Fund Denmark, the country applies blended finance models to enable scalable, green solutions in developing markets.