Danish pension funds are “leading the way” with a total of DKK 343bn allocated to climate investments, according to Insurance and Pension Denmark (I&P Denmark).

The comment comes as the association is currently being represented at Climate Week in New York together with several large Danish pension companies. Analysis by I&P Denmark has found that broken down, every Danish household has invested more than DKK 120,000 in the green energy transition.

The association believes this is partly due to the pension industry's special climate commitment and role in building green investment funds.

I&P Denmark deputy director, Tom Vile Jensen, commented, “The Danish pension industry has left a lasting mark on the climate and energy agenda, and this has attracted international interest.”

He pointed out that Danish companies are the only ones in the world to have made a concrete commitment to invest in the energy transition moving from fossil fuels to green energy. The industry is targeting DKK 450bn worth of climate investments by 2030.

However, the industry's role in establishing significant investment funds has also resonated. These funds target investments in the energy transition around the world.

“Globally, the big, overarching debate is about ‘the financing gap’: How do we find large-scale private financing to switch from fossil fuels to more sustainable and renewable energy? Danish pension companies have helped crack the code, for example through the two large funds, CIP and AIP Management. In this way, Denmark has developed into an international green investment hub," Vile Jensen said.

During Climate Week Vile Jensen will put forward proposals on what steps are needed to promote investment in the energy transition following the Danish model.

“The climate crisis is one of the biggest crises in the world, yet we are currently experiencing financial headwinds for renewable energy projects in some parts of the world. That's why it's important that we share knowledge internationally on how to solve the problems of financing the necessary energy transition. It works both ways: We learn from others, they can learn from us,” he concluded.

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