The Danish government has expressed its support for pension funds in the country to own and operate forests through subsidiaries.

Minister for Industry, Business and Financial Affairs, Simon Kollerup, has announced that he supports the idea, which Insurance and Pension Denmark (I&P Denmark) said is good news.

Furthermore, a broad majority of the parliamentary parties have sent a clear political signal that this should be possible. I&P Denmark is now waiting for the Danish authorities to ensure that this is possible within the framework of EU rules.

“There is great interest among several Danish insurance and pension companies to make long-term investments in forests – both to ensure a good return with low risk to customers and at the same time contribute to the green transition. We are pleased that the minister and the parliamentary parties so clearly state that they want to make it possible,” I&P Denmark deputy director Jan V. Hansen, said.

He hopes for - and calls for - openness about the Danish dialogue with the EU authorities to ensure the best possible basis for politicians to introduce the possibility in Denmark as desired.

“We have a great understanding that the government will ensure that companies' opportunities to invest in and manage forests are in accordance with EU rules. And we hope, of course, that there is the greatest possible openness about the Danish authorities' dialogue with the EU Commission, and that we get a quick and positive message. The signal from our elected representatives is quite clear that it should be possible,” Hansen added.

He notes that in Sweden it is possible for insurance and pension companies to own and operate forests in subsidiaries.

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