In the forthcoming Finance Act for 2024, Denmark is set to elevate its commitment to green development cooperation from 30% to 35%. The increase amounting to approximately EUR 268m (DKK 2bn), marks a new Danish record totalling EUR 804m (DKK 6bn) in 2024. The allocation is targeted climate efforts within biodiversity conservation, climate adaptation, water management, and green transformation of food systems.

“Intense effects of climate change are no longer something we talk about as a possible future scenario. They are here. In many of the world’s developing countries, they hit in a way that accelerates and worsens the development issues the countries struggling with. Drought and floods may destroy crops and create poverty and hunger. Extreme weather can drive people to flee. The need for help is massive. That is why we are significantly increasing our green aid,” says Dan Jørgensen, the Danish Minister for Development Cooperation and Global Climate Policy.

Denmark’s commitment underscores its position as one of the world’s few nations that adhere to the UN’s objectives by allocating 0.7% of Gross National Income (GNI) to development cooperation. Additionally, the Danish climate funding under its global development cooperation is expected to make up at least 30% of which 60% will continue to be targeted climate adaptation. This majority will assist in bolstering the resilience of developing countries towards the challenges posed by climate change.

Fighting deforestation through the Amazon Fund

As part of the forthcoming Finance Act, Denmark  will be supporting preservation and protection of the Amazon. Since Brazil began monitoring deforestation in the Amazon in 1988, approximately 20% of the original area – more than 800,000 square kilometers – has been deforested, an area the size of Türkiye. Through the Amazon Fund, Denmark will support the Brazilian Government’s efforts to stop deforestation of the Amazon before 2030 with a contrinbution of EUR 20m (DKK 150m).

“Stopping deforestation is a good example that climate policy, environmental policy, and development policy are closely intertwined. These investments in the Amazon will be an important part of Denmark’s increasingly coordinated approach to these areas of policy,” says Dan Jørgensen, the Danish Minister for Development Cooperation and Global Climate Policy.

Projects and initiatives financed through the Amazon Fund help to reduce deforestation, protect biodiversity, improve the living conditions of the local population, and promote sustainable development in Brazil. Support for the Brazilian rainforest is a part of global efforts to preserve forests, which is among the Danish Government’s priorities for development cooperation in the forthcoming Finance Act.

As part of an overall forest and nature initiative with more than EUR 134m (DKK 1bn) in funding from 2024-2027, EUR 47m (DKK 350m) will be allocated to strengthen efforts in support of forests and biodiversity in 2024.

Read more: Denmark supports preservation and protection of the Amazon