Perspective
From 11-22 November, the Danish Ministry of Climate, Energy and Utilities, State of Green, Danish Industry and the Danish Ministry of Foreign Affairs organise the Danish Pavilion at the climate COP. Read more and discover Denmark’s platform for public-private climate action at COP29.
Read more about Denmark at COP29Finance plays a pivotal role in curbing climate change and accelerating the green transition. To achieve the goal of limiting global warming to the 1.5°C pathway outlined in the Paris Agreement, substantial global investment is essential. According to the 2023 Net Zero Roadmap by the International Energy Agency (IEA), clean energy investments must reach USD 4.5 billion annually by 2030 to stay on this trajectory.
Denmark attends COP29 to underscore its role as a financial hub for green investments. This position reflects Denmark’s longstanding commitment to sustainability and renewable energy, with a focus on blended financing and global investment coalitions driving the green transition in both developed and emerging markets.
Widely known as the ‘Finance COP’, COP29 in Baku revolves around climate finance, with discussions to unlock new sources of funding to tackle climate change. For the first time in 15 years, countries are set to agree on the New Collective Quantified Goal (NCQG), which will replace the previous commitment of mobilising USD 100 billion annually by 2020 to assist developing nations mitigate and adapt to climate change.
The NCQG seeks to address the dramatically increased financial needs of developing countries, now estimated at $500 billion to over $1 trillion annually for effective climate action. Discussions at COP29 will focus on determining the total amount, identifying contributors and recipients, and deciding on the forms of finance, such as grants or loans. This emphasis on finance is crucial for enabling developing countries to meet their climate commitments and adapt to the escalating impacts of climate change.
In addition to setting the NCQG, COP29 will also address other critical issues, including the operationalisation of the Loss and Damage Fund established at COP28, which aims to compensate climate-vulnerable countries for the adverse effects of climate change. The outcomes of COP29 are expected to significantly influence global climate finance strategies and the ability of developing nations to implement effective climate action.
With pioneering pension funds, asset managers and public investors, Denmark has long led the way in ESG and green financing.
Denmark has extensive experience in financing the green transition, both nationally and internationally. Since the late 1970s, Danish entrepreneurs, innovators, and successive governments have focused on developing and promoting green technologies, including renewable energy, water and energy efficiency, and the transition away from fossil fuels.
The Danish insurance and pension industry manages EUR 535 billion on behalf of Danish insurance and pension customers—one of the world’s largest pension asset pools relative to GDP, with approximately two-thirds invested abroad. While the primary objective of pension funds and asset managers remains generating returns for their customers, there is a growing commitment to investing responsibly and sustainably, addressing Environmental, Social, and Governance (ESG) risks.
Denmark was the first UN member to offer “loss and damage” climate funding in 2022 to support climate adaptation and initiatives aimed at averting, minimising, and addressing climate-induced loss and damage in developing countries. This commitment continued at COP28 last year, where Denmark contributed USD 25 million to a newly established fund for loss and damage, aimed at supporting countries affected by sudden climate-induced disasters.
Denmark arrives in Baku with its strongest financial delegation to date, featuring leading insurance and investment firms. The Danish delegation brings a wealth of experience and expertise in finance, showcased in a packed programme at the Denmark Pavilion, with events focused on financing the green transition.
On Thursday, 14 November, the Denmark Pavilion will host an event by the Investment Mobilisation Collaboration Alliance (IMCA). Partners and observer countries will review the first year’s progress in mobilising private capital for climate finance, share successful funding initiatives, and broaden collaboration. The event will introduce new partners and announce a call for proposals for a new finance window aimed at Greening Value Chains in Africa.
Visit the Denmark Pavilion to connect with financial solution providers and explore their goals and ambitions for COP29 below.
Discover the full program for the Denmark Pavillion at COP29
