The Danish government will be establishing a climate investment fund in order to mobilise private and public funding for climate friendly projects in developing countries.
The aim of the fund is to enhance the use of green Danish technology and Danish climate investment in developing countries through investments and counselling.
This year, 100 million DKR will be placed in the fund, followed by an additional 50 million next year.
Private investors as well as fund administrator IFU (The Danish fund for industrialisation of developing countries) are also expected to add to the climate fund – bringing the total capital to between 500 and 700 million DKR by the end of 2013.
In an investment perspective, this means that the fund will be adding to climate friendly investment projects in the scale of 4-5 billion DKR.
“This is an important step in the fight against climate changes,” says Minister for Development, Christian Friis Bach.
“We are spearheading the attempt to raise climate money from public sources, pension funds and private investors. We will be making a significant contribution to climate investments in poor countries that often do not have the resources to meet the challenges.
If you would like to know more about the new climate fund, please visit the IFU website.