Insurance and Pension Denmark (I&P) has welcomed the government’s proposal for the 2026 Finance Act, describing its emphasis on climate adaptation and long-term security for households as a "wise move."

The draft, announced today (29 August), allocates approximately DKK 900m over four years to strengthen coastal protection, alongside environmental impact assessments for storm surge defences in Copenhagen.

A second national Climate Adaptation Plan is also in preparation.

“It is a finance law that has a clear focus on creating greater financial security for Danes”, said I&P CEO, Kent Damsgaard.

“The climate adaptation of our country is to that extent a question of long-term security and safety for Danish homeowners, so we are pleased that this has been taken into account.”

He added that the measures were essential as “the weather is only getting wilder, and more and more Danes are experiencing that their homes are being affected or are in danger.”

The proposal also allocates DKK 500m annually to strengthen public safety and preparedness.

Damsgaard noted the heightened risk environment facing Denmark and Europe, stating that bolstering resilience against both physical and digital threats was a “wise and right move.”

The proposals build on broader calls from the industry for more ambitious climate-proofing and green investment opportunities.

Earlier this year, I&P urged the government to establish a DKK 700m annual fund to protect homes and businesses from extreme weather, while also scrapping sector-specific taxes and creating stronger incentives for green investments.

Meanwhile, a new bill has been introduced to allow Danish pension funds to own and operate forests through subsidiaries, a move praised by I&P as a way to combine long-term returns with sustainability and biodiversity objectives.

The firm noted that whilst a broad political majority agreed in 2022 that it would allow the pensions and insurance industry to do this, the EU Commission had now confirmed that this was possible within EU rules.

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