Stockholm (NordSIP) – The Kingdom of Denmark stands to become the first country to issue a European Green Government Bond (EuGB) under the new European Green Bond standard. In its 3 September 2025 announcement, the sovereign issuer stated that the bond will be opened before the end of the year v9ia a syndicate initial issuance.
The new Danish EuGB-compliant bond will also align with the International Capital Market Association (ICMA) Green Bond Principles. The Danish state is keen to lead the way in terms of building global confidence in the Green Bind market, according to Danish Central Bank Governor Signe Krogstrup: “With the upcoming issuance, the Danish state actively supports a common European language for green investments. The European Green Bond Standard creates transparency and trust in the market – and the Danish state is leading the way by adhering to the highest standards, thereby supporting the development of green capital markets.”
Focus on renewable energy, green transport, and nature
As part of its EuGB and ICMA compliance efforts, the Danish state engaged Sustainable Fitch to carry out an independent review of the relevant use of proceeds (UoP). The expected DKK 10 billion proceeds are earmarked for government expenditure on solar and wind electricity generation and distribution, railway infrastructure, and nature-positive investments such as wetland restoration and afforestation, all of which are deemed to fully comply with the EU Taxonomy.
In the interests of investor flexibility and liquidity requirements new EuGB compliant green sovereign bond is to be issued as a ‘twin’ to the Danish government’s conventional 10-year bond. Denmark has set a national target of reducing greenhouse gas (GHG) emission by 70% by 2030 and achieve 100% renewable energy consumption by 2028. Its national 2020 Climate Act obliges the government to publish relevant action plans and updates annually. An inter-ministerial working group is tasked with identifying and evaluating potentially eligible green expenditures according to their compliance with EU taxonomy substantial contribution (SCC) and do no significant harm (DNSH) criteria.
Stockholm (NordSIP) – The Kingdom of Denmark stands to become the first country to issue a European Green Government Bond (EuGB) under the new European Green Bond standard. In its 3 September 2025 announcement, the sovereign issuer stated that the bond will be opened before the end of the year v9ia a syndicate initial issuance.
The new Danish EuGB-compliant bond will also align with the International Capital Market Association (ICMA) Green Bond Principles. The Danish state is keen to lead the way in terms of building global confidence in the Green Bind market, according to Danish Central Bank Governor Signe Krogstrup: “With the upcoming issuance, the Danish state actively supports a common European language for green investments. The European Green Bond Standard creates transparency and trust in the market – and the Danish state is leading the way by adhering to the highest standards, thereby supporting the development of green capital markets.”
Focus on renewable energy, green transport, and nature
As part of its EuGB and ICMA compliance efforts, the Danish state engaged Sustainable Fitch to carry out an independent review of the relevant use of proceeds (UoP). The expected DKK 10 billion proceeds are earmarked for government expenditure on solar and wind electricity generation and distribution, railway infrastructure, and nature-positive investments such as wetland restoration and afforestation, all of which are deemed to fully comply with the EU Taxonomy.
In the interests of investor flexibility and liquidity requirements new EuGB compliant green sovereign bond is to be issued as a ‘twin’ to the Danish government’s conventional 10-year bond. Denmark has set a national target of reducing greenhouse gas (GHG) emission by 70% by 2030 and achieve 100% renewable energy consumption by 2028. Its national 2020 Climate Act obliges the government to publish relevant action plans and updates annually. An inter-ministerial working group is tasked with identifying and evaluating potentially eligible green expenditures according to their compliance with EU taxonomy substantial contribution (SCC) and do no significant harm (DNSH) criteria.
