Climate financing

Denmark funds a series of initiatives that help developing countries and emerging economies translate their climate objectives into specific projects.

Climate funding and the Paris Agreement

In the Paris Agreement Parties confirm their promise to mobilise 100 billion USD a year from public and private sources to support climate initiatives in developing countries. A new funding objective for developing countries shall be adopted for the period taking affect after 2025 to allow more countries to contribute to the funding scheme.

Denmark and the EU can play a central part by assisting developing countries translate their climate objectives into specific projects, with the assistance of climate funding and capacity-building instruments.


Climate funding in cross-disciplinary initiatives

In Denmark, we focus on assisting important emerging economies in their sustainable transition by making Danish experience, expertise and technology available.

Denmark has made bilateral cooperation agreements in the field of energy and climate with several growing economies, including China, Mexico, Vietnam and SouthAfrica. The cooperation advances favourable regulations and robust framework conditions, which are important prerequisites for external and national climate funding.

This work is supported by multilateral organisations such as the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA). Furthermore, Denmark is involved in the promotion of more favourable framework conditions through engagement in cross-disciplinary initiatives, such as phasing out subsidies for fossil fuels.


Demand and mobilisation

Denmark provides advisory services in response to growing demand from developing countries to gain access to climate financing and support for their "readiness" activities and projects. The purpose of the readiness financing tool is to enhance the capacity of developing countries to design and execute ambitious climate projects that are coordinated with national development plans.

This category also includes support to i.a.

Denmark supports the mobilization and scaling up of dedicated climate finance funds to achieve climate objectives.

Denmark contributes to The Green Climate Fund (GCF) and The Global Climate Partnership Fund (GCPF).


New and innovative solutions

Subsidies are granted to innovative financing initiatives and instruments aimed at breaking down barriers to the private sector in the field of climate financing, such aswarranties and insurance. 

The Energy Savings Insurance  (ESI) is an innovative instrument providing assurance that energy efficiency projects generate financial savings. The ESI includes a component for private investments in energy efficiency improvements in developing countries.

Additional initiatives include the Green Investment Fund (GIF) in Vietnam, which encourages investments in energy efficient technologies, and The Danish Climate Investment Foundation (KIF), focused on Danish pension funds that invest in commercial climate projects in developing countries.