(Bloomberg) -- Denmark's $450 billion pension industry plans to invest over a tenth of its wealth in sustainable energy over the next decade.
Danish pension firms, ranked among the world's best performing, will make more than 350 billion kroner ($52 billion) in new investments by 2030, according to a joint statement. The program will target both green financial assets and direct holdings in energy generation and energy-efficient construction.
According to Torben Pedersen, deputy chairman of the industry's umbrella group Insurance & Pension Denmark, experience shows that such investments are profitable. That means investors can “find a solution to the climate challenge but also give good returns on investments,” he said.
The plan was announced on Sunday in connection with Denmark's presentation at the Climate Action Summit in New York. The country, which has been led by a Social Democrat government since June, is keen to re-establish its position as a front-runner in sustainability.
Danish Prime Minister Mette Frederiksen called the contribution from her country's pension industry a “significant commitment.” The next step is to engage international investors, which is critical if the transition to sustainability is to succeed, Frederiksen said in a statement.
Denmark's pension firms currently have a total of around 161 billion kroner in existing or planned green assets, according to industry data.
More to Read: Worried About High Energy Bills and Green Taxes? Danes Are Not
To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at fschwartzko1@bloomberg.net
To contact the editor responsible for this story: Tasneem Hanfi Brögger at tbrogger@bloomberg.net
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