Danish Pension funds to invest more than 46 billion to green transition by 2030
All eyes were on New York this week as the UN Climate Action Summit and General Assembly took place. Attending both events, Denmark’s Prime Minister Mette Frederiksen captured the attention at a pre-summit event together with the Danish pension industry. Announcing the Danish pension industry’s plans for a staggering 46 billion euros to be invested in the transition to a carbon neutral world by 2030, the collaboration between the Danish government and Danish pension funds represents a massive mobilisation in clean energy investment. In addition, the Danish government also announced 20 million euros worth of funding for the Global Climate Facility – a fund that conducts green investments in developing countries.
At an individual and societal level, there is widespread recognition that pension savings could be the answer to halting investment in black energy and companies that pollute, as well as bridge the financing gap that currently exists within green investments. It is estimated that long-term pension savings represent approximately half of all available global capital for tackling the climate crisis and when measured per capita, Danes have the second largest pension savings in the world. By 2030, it is expected that ten per cent of all Danish pension savings will be devoted to green investments.