* Danish climate fund to have 1.4 bln DKK at disposal
* To invest in emissions cutting projects
LONDON Jan 14 Danish pension funds and the
government will invest in a state fund to finance projects to
fight climate change in developing countries, one of the
investors said in a statement.
PensionDanmark said it had committed 200 million Danish
crowns ($37 million) to the fund, while a further 1 billion
crowns will come from pension funds PKA and PBU, private
investment fund Dansk Vækstkapital, the Investment Fund for
Developing Countries and the Danish government.
The fund is expected to receive another 200 million crowns
from private investors in a second investment round, giving it a
total of 1.4 billion crowns at its disposal.
The Danish Climate Investment Fund will run for four years
and have an annual return of 12 percent, PensionDanmark said.
It will invest in projects which reduce greenhouse gas
emissions such as renewable energy, energy efficiency and
transport schemes in emerging economies from Africa to Asia.
It will also finance projects which help communities and
geographies prepare for the effects of climate change, such as
disaster preparation and coastal management.
The fund will only finance projects which have a Danish
financial interest, meaning that a Danish partner must co-invest
or participate as a supplier of equipment or technology.
"We are expecting the Danish Climate Investment Fund to
deliver solid returns to our members in the coming years, while
serving to boost the standing of Danish companies in the new
growth markets," said PensionDanmark's chief executive Torben
PensionDanmark has 642,000 members and had 16 billion euros
of assets under management at the end of 2011. It expects those
assets to exceed 24 billion euros by 2016.
($1 = 5.4656 Danish crowns)
(Reporting by Nina Chestney; Editing by Mark Potter)