Denmark funds climate efforts in poorer nations

Denmark joins a new World Bank initiative to channel funds from rich to poor countries for climate adaptation and poverty alleviation. An investment of 400 million Danish kroner could be expanded into a 3.2 billion kroner loan by the World Bank. Denmark makes this possible by buying the bank’s bonds, a method known as hybrid capital, as announced by Minister Dan Jørgensen at the World Bank’s spring meeting. In addition, Denmark and Sweden are adding 700 million kroner to the IMCA alliance to secure private investments through guarantees. The Danish contributions will come from the development assistance budget and are earmarked for climate adaptation projects in hard-hit countries, despite the risk of loss to taxpayers.