Stockholm (NordSIP) – Danmarks Grønne Investeringsfond (Denmark’s Green Investment Fund) has reached the DKK 1 billion mark in loans across 42 companies investing in green conversion since its inception in 2015, it emerged this week.
DGI provides loans for projects that are commercial, scalable and which have a demonstrable green effect on society, projects that otherwise would not be initiated or significantly promoted without this funding. DGI is an independent loan fund owned by the Danish state and established as part of the “Greener Denmark” political initiative in 2014.
To secure loans, companies must be able to prove their projects will have a green effect. The current lending at DKK 1 billion has made possible savings of over 425,000 tonnes of CO2 emissions annually. The 42 companies in the DGI portfolio have also attracted additional capital to the tune of DKK 4 billion for investment in green conversion.
“Our role is to bridge the capital that companies themselves have with the financing the private market offers,” said DGI chairman Jørgen Tang-Jensen in a press release announcing the news. “Where these ends to not meet, green projects amount to nothing, no matter how well the economy is going. I am very pleased that we have now surpassed DKK 1 billion in lending and that it has paved the way for massive private investment in green conversion.”
DGI has funded a wide variety of projects across Denmark, among other things in renewable energy, energy conservation and the sustainable use of resources, from biogas to protein production and hydrogen production to energy storage. All such projects both promote green conversion and a healthy economy.
“We only finance green projects with commercial objectives, but these at the same time present risks in terms of business models, markets or technologies that private banks and investors do not want to assume themselves. The risk is something we assume to promote green change, and so far it has proved to be good business for companies and above all, good for society,” Tang-Jensen added.
There are concrete projects in DGI’s pipeline worth another DKK 200 million in the current financial year alone.
“Denmark’s Green Investment Fund can hopefully accelerate the transition to a greener society by helping those companies who want but who lack funding. There will be more money, jobs and environmental benefits,” commented Minister for Business Rasmus Jarlov in connection with the milestone.