The Danish pensions and insurance lobby has presented proposals to the country’s government and parliament on a new climate initiative, calling for the creation of a climate fund, as well as a national climate adaptation plan.
Insurance and Pension Denmark (IPD) listed 13 concrete proposals – such as ensuring that the EU’s forthcoming Solvency II regulation does not hamper green investments – in the 40-page document.
Kent Damsgaard, CEO of IPD, said: “We have two basic climate tasks. The first is to fight climate change – and the second is to adapt to the drastic changes which are unfortunately already a reality.
“Insurance and pension companies are deeply committed to both and offer solutions, but there is huge potential to do more,” he said.
The pressure group proposes that a climate fund financed by the state budget be created to guarantee the financing of climate adaptation projects, as well as a national action plan for climate adaptation.
Among other recommendations, IPD also proposed that a task force be set up to promote green exports under the leadership of the Export Credit Agency (EKF) with the participation of the Export Council.
Another proposal is that the Danish central bank create a model of green government bonds that meet the requirements set out in the European standard on green bonds, and that the same standards be applied to green corporate bonds.
The IPD said Denmark should establish an economic roadmap for the green transition and that “massive investments” in new technologies are needed in order to use renewable energies for the transport and agriculture sectors, for example.
“The investments are so important that the public funds are far from being able to take on this task on their own,” he said.
Pension companies were ready to invest billions in the green transition, but lacked a clear, long-term roadmap, Damsgaard said.
“Climate change has already had serious consequences, as we have also seen with our German neighbors this summer,” he said.
In launching the proposals, the IPD also lobbied for the same ambitious requirements to apply to the public and private sectors.
“Especially in companies like Denmark with a large public sector […] it is also absolutely crucial that we also restructure the whole public sector, so that, for example, public buildings are also more involved in the fight against the climate, ”said Damsgaard.
Last week, the IPD announced that it had adopted a set of common climate reporting rules for the sector, as part of the work underway in the Nordic country to achieve its goal of reducing greenhouse gas emissions by 70 % by 2030 from 1990 levels.