Danish Climate Investment Fund

Overview

The Danish Climate Investment Fund is a public-private partnership established to invest in climate projects in developing countries, aiming to reduce greenhouse gas emissions and promote Danish climate technology. Managed by Impact Fund Denmark, the fund has a total committed capital of DKK 1.4 billion (approximately USD 220 million). It focuses on projects that directly or indirectly contribute to the reduction of greenhouse gas emissions, including renewable energy projects such as solar, hydro, and wind. The fund seeks to invest in projects that are commercially sustainable and employ known climate technology. It offers both share capital for the establishment of companies in collaboration with Danish businesses and can co-invest in major climate projects that include Danish technology or know-how. The fund requires co-financing and prefers a consortium of shareholders to share due diligence, with an emphasis on local investor industrial co-investor or local financial institution. Eligible countries include all countries in Africa and Latin America, most of the countries in Asia, and a few countries in Europe. The fund has invested in various sectors, including renewable energy, infrastructure, and agriculture, with a geographical focus on developing countries in Africa, Asia, Latin America, and parts of Europe. The Danish Climate Investment Fund aims to contribute to reducing global warming and promoting Danish climate technology through investments on commercial terms. It is managed by Impact Fund Denmark, which has made more than 1,200 investments in over 100 countries. The fund's investments are intended to create lasting impact by addressing systemic challenges, supporting resilient economies, and empowering progress toward a more sustainable and inclusive world. The fund's portfolio includes investments in renewable energy projects, infrastructure, and other sectors contributing to the green transition in developing and growth economies. The Danish Climate Investment Fund is part of Denmark's commitment to mobilize capital for climate investments in developing countries, as agreed upon at the UN climate summit in Copenhagen in December 2009 (COP 15).

Investment Focus

• Co-financing required
• Commercial sustainability
• Use of known climate technology
• Preference for consortium of shareholders
• Emphasis on local investor industrial co-investor or local financial institution

Portfolio Companies