To help finance the country’s transition towards carbon neutrality, Denmark will be issuing its first green bond in early 2022.
Denmark has been leading the development of wind power and has also been looking to how to fund its transition. The country aims to reduce greenhouse gas emissions up to 70 percent by 2023, compared to the levels in 1990.
Signe Krogstrup, the Deputy Central Bank Governor of Denmark’s central bank explains in a statement, “With a green bond, the Danish government offers a product that is in high demand among investors and that can support a broad and well-diversified investor base.”
“That is what investors are looking for. They want green investments, which are within the taxonomy, and they get that here,” comments Arne Rasmussen, Danske Bank’s Chief Analyst.
The exact amount of the bond will be announced later in December this year.