Danish Government Says First Green Instrument May Come in 2021

The Danish government is working with outside advisers on a plan to issue a green security, with a final decision on whether to go ahead expected later this year.

The Finance Ministry said discussions now are related to deciding how a program might look. An issuance this year is possible, the minister said in a email.

A decision to proceed would make Denmark the latest AAA-rated economy to launch a green security. Demand is likely to be high as investors chase investments targeting environmental and social goals. The development was first reported by the newspaper Borsen on Thursday.

Sweden Raises $2.3 Billion With Debut Green Sovereign Bond

A sale would come as the government moves ahead with the country’s largest construction project ever: a 210 billion krone ($34 billion) man-made ‘energy island’ and hundreds of offshore wind mills to deliver clean electricity and help the country achieve climate neutrality by 2050.

Denmark is far from reaching its 2030 target for carbon emission reductions, the country’s climate watchdog said last month in its annual review.

The country’s central bank has proposed selling green certificates tied to the existing bond series, to preserve liquidity in the market. The country’s pension funds say they prefer green bonds.

Read More: Pension Funds Push for Sovereign Green Bonds as Denmark Lags

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