29 June 2021 Danish Green Future Fund – Contributing to a National and Global Green Transition The Danish Green Future Fund was established in 2020 by the Danish government and the parties behind the Finance Act. What Problems Does the Danish Green Future Fund Solve? The purpose of the Danish Green Future Fund is to contribute to a national and global green transition, including: The development and dissemination of technologies. The conversion of energy systems to renewable energy, storage, and efficient use of energy. Promoting global exports of green technology, especially in the field of wind. “At the same time, the fund must contribute to solving the challenges posed by climate change and a growing world population in the form of food shortages and water scarcity,” says Cecilie Idun Andersen, Press Adviser at Vækstfonden. Investment Sectors Investments within the fund will follow the UN's guidelines for human rights and business. This is to ensure the projects take care of the employees' rights, just as the invested companies must pay the obliged tax under international agreements and national rules. The Danish Green Future Fund has a total capital commitment of DKK 25 billion (EUR 3.36 billion). This capital is divided into four state-owned funds: EKF Danmarks Eksportkredit Investeringsfonden for Udviklingslande (IFU) The Danish Green Investment Fund (DGIF) Vækstfonden (VF) To be able to apply for capital from the Danish Green Future Fund (via Vækstfonden and the Danish Green Investment Fund), applicants must meet the following requirements: The project must contribute to the green transformation of society. The project must be financially sustainable. This means that the loan must be repayable with an interest rate that matches the risk. “In addition, the company must be within the Danish Green Investment Fund or Vækstfonden’s general target group,” explains Cecilie Andersen. The Danish Green Investment Fund finances all sizes of private companies in all industries, public housing organisations, as well as public institutions and companies that want to implement green solutions. Vækstfonden finances small- and medium-sized enterprises in all industries across the country. They co-finance: Privately-held companies, Non-profit housing associations, Public sector companies and institutions with budgets separate from the municipalities, regions, and the state. They collaborate with: Consultants, Energy and utility companies, Suppliers of technological solutions. Future Impact of the Danish Green Investment Fund “It is a great pleasure that we now can begin the work of securing even more capital for green technologies and solutions. This means that we can contribute to the development of new sustainable companies, create many new jobs, and significantly reduce CO2 emissions that can help us on our way to the 70% goal by 2030,” shares Anders Eldrup, Chairman of the Board of the Danish Green Investment Fund. “In Denmark, we have many talented, green entrepreneurs. They all contribute to the climate facing a better and brighter future, and we must seize the momentum that the corona crisis has created. In Vækstfonden, we work every day to develop the companies that Denmark must not miss, and in that equation, the green companies are indispensable. They will be the ones we have to live off of in the future,” explains Rolf Kjærgaard, CEO of Vækstfonden. “With the agreement in place, we can now begin important work. We can secure financing for new technologies such as vertical farming, intelligent heat pumps or revolutionary machines for the conversion of industry. I am very much looking forward to learning more about the exciting, green projects at Danish companies around the country,” concludes Michael Zöllner, Managing Director of the Danish Green Investment Fund.