The Danish pension industry is “ready to collaborate” on funding more forests in the country but a new framework is needed to facilitate this, Insurance and Pension Denmark (I&P Denmark) has said.

The association’s comments follow the Danish Council on Climate Change’s recommendations for more areas of Denmark to be zoned for forests. I&P Denmark deputy director, Tom Vile Jensen, said the council’s comments “speak directly into an agenda that the pension industry has been arguing for, for a long time”.

"We need more forests in Denmark, as creating more forests has a wide range of positive benefits for the environment and climate. The pension industry has long been an active player, but primarily abroad, as the framework in Denmark has not been favourable for large-scale investments in forests,” he said.

Therefore, I&P Denmark is calling for a better framework for pension funds to invest in Danish forests.

“Major private and public investments in forests are needed if we are to achieve the EU's and government's objectives. Therefore, there is a need to make it more attractive to invest in forests in Denmark. The Danish Council on Climate Change's proposal for subsidies is a good initiative, but you should also look into, for example, CO2 quotas and so-called mitigation credits, which we know from the United States,” Vile Jensen said.

“With the right framework, we can also create the basis for investments in, for example, protected forests. In addition, one should also look into whether the framework for the ecosystem for the forest industry in Denmark is good enough in terms of getting the timber sold.”

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