Decrease in CO2 emissions – increase in sale of Danish climate technology

The Danish state has established a climate investment fund to promote climate investments in developing countries and emerging markets, thereby contributing to reducing global warming and promote transfer of Danish climate technology. IFU is the fund manager of the Danish Climate Investment Fund.

At the UN climate conference in Copenhagen in December 2009 (COP 15), it was decided that the developed countries should mobilise capital for climate investments in developing countries. The objective being to mobilise USD 100bn annually from 2020, and that part of these funds should be made available by the private sector.

The establishment of the Danish Climate Investment Fund means that Denmark is at the forefront and has procured DKK 1.3bn of public and private funds. The public funds have been provided by the Danish government and IFU, which have contributed DKK 525m. Private funds of a total of DKK 774m have been contributed by pension funds PensionDanmark, PKA and Pædagogernes Pensionskasse (PBU), the private investment fund Dansk Vækstkapital and Aage V. Jensen Charity Foundation.

Assisting Danish trade and industry

The Danish Climate Investment Fund offers risk capital and advice for climate projects in developing countries, the growth markets in Asia, Africa, Latin America and parts of Europe.

The fund invests in projects, which – directly or indirectly contribute to reduction of the emission of greenhouse gasses. We offer share capital for the establishment of companies in collaboration with Danish businesses, or we can co-invest in major climate projects which include Danish technology or know-how.

It is a prerequisite for our investments that the project is commercially sustainable and employs known climate technology.

The Danish Climate Investment Fund is managed by IFU, which in collaboration with Danish companies has made more than 1,200 investments in more than 100 countries. Thus we can offer in-depth financial experience, extensive knowledge about local business conditions as well as a wide international network.

Total investments of DKK 8 – 9bn

The Danish Climate Investment Fund only offers part of the total project financing in each single project. Thus the realisation of the projects will have to include further financing from other public and private investors, e g Danish partner, local banks, funds and others. It is estimated that total investments will amount to approx. DKK 8-9bn.

Approval of six investments

Till this date, the Danish Climate Investment Fund has approved six investments. These cover a wind farm in Kenya with Vestas, a production company within wind energy in China with DEIF, development of bioethanol in China together with Dong Energy, a number of solar energy installations in the Maldives together with Nordic Power Partners, production of valves in Brazil together with AVK, and finally a company which will develop wind and solar parks.

For more, see www.danishclimateinvestmentfund.com

Contact persons
Jacob Klingemann

Jacob Klingemann

Vice President, Climate Investments
Tel.: +45 33 63 75 28
Mob.: +45 22 68 75 28
jkl@ifu.dk

Peer Munkholt

Peer Munkholt

Investment Director
Tel.: +45 33 63 75 53
Mob.: +45 22 68 75 53
pmu@ifu.dk

Natalia Svejgaard

Natalia Svejgaard

Investment Director
Tel.: +45 33 63 75 31
Mob.: +45 22 68 75 31
nsv@ifu.dk

Otto Vinther Christensen

Otto Vinther Christensen

Investment Director
Tel.: +45 33 63 75 04
Mob.: +45 22 68 75 04
ovc@ifu.dk

Bettina Aagard Vester

Bettina Aagard Vester

Investment Manager
Tel.: +45 33 63 75 76
Mob.: +45 22 68 75 76
bav@ifu.dk

KIF fact sheet