Denmark to Establish $1B Green Fund

June 27, 2014 By Kirsten Korosec

Denmark will form a nearly $1 billion green fund in an effort to reduce energy use, fund renewable energy projects and create jobs.

The country’s finance minister Bjarne Corydon announced the government’s plans to create the Denmark Green Investment Fund this week, reported the Wall Street Journal. The fund will initially provide 2 billion kroner ($365 million) in government guarantees designed to attract investments from pension funds and other private institutions. Under the deal, another 3 billion kroner in government guarantees can be added in a later phase.

The UK has created a similar green investment fund , reported the Wall Street Journal. Several U.S. states such as New York also have formed green banks to help finance energy projects. In February, the New York Green Bank began seeking proposals from private sector stakeholders that facilitate the financing of creditworthy clean-energy projects in New York State.

The NY Green Bank was formed to facilitate private market financing of renewable energy and energy efficiency projects that have difficulty accessing financing due to market barriers. Eligible proposers include energy service companies, developers, equipment manufacturers or others that provide equipment, materials and/or services related to renewable energy and energy efficiency projects along with financial institutions or other third-party capital providers that are financing, or intending to finance, such projects.

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