Denmark sets aside millions for private solutions to global challenges

International Finance Corporation getting 60 million kroner over the next three years

Over the next three years, Denmark has pledged to give 60 million kroner to promote private solutions to global climate change issues.

The minister for development, Ulla Tørnæs, is in Washington today to sign a new co-operation agreement with the International Finance Corporation (IFC) in connection with the aid.

“If we are to reach the UN’s 2030 Global Goals, it will cost 3 billion US dollars a year – every year until 2030,” said Tørnæs.

“It doesn’t take a rocket scientist to figure out that this is a task that can’t be met by publicly-financed aid alone, so it’s essential that we get the private sector on board. But investing in developing nations can be very risky, so a tool like the IFC removes some of that risk.”

READ MORE: World Bank: Denmark top for green energy

Private dancer
IFC is part of the World Bank and a key player in mobilising private sector investment for the development of private sectors in developing nations. The agreement today will be signed in connection with the World Bank’s spring meeting, which is currently underway in Washington DC.

The agreement strives to develop and scale innovative business models and new tech solutions with a particular focus on climate challenges in developing nations.

“Danish business has many strong competencies that are needed in developing countries,” said Tørnæs.

“Danish expertise within sustainable energy alone can help create great strides in those nations. Not just because it will provide access to stable energy, but because it will be green energy. This new strategic partnership sets the stage for a very solid foundation for that.”