Denmark’s first inexperienced authorities bonds

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Howdy, and welcome to this investor assembly. It is nice to see so lots of you. What a pity that we can’t maintain the assembly in bodily kind.

At present, we’re going to discuss inexperienced bonds and the net-zero transition. I am going to begin from a Danmarks Nationalbank perspective. I’ll then flip to the wonderful cooperation with the Ministry of Finance on authorities debt administration.

I’m requested increasingly more usually how Danmarks Nationalbank is contributing to the net-zero transition. My reply is that Danmarks Nationalbank contributes by guaranteeing good situations for the transition. This has a number of meanings.

Danmarks Nationalbank contributes by assembly its goals of guaranteeing a sturdy financial system with secure costs, protected funds and stability within the monetary system. This offers for secure planning horizons as a stable foundation for long-term inexperienced investments. In addition to this, a secure financial system provides to fiscal area.

Danmarks Nationalbank additionally contributes to the transition by elevating local weather consciousness within the monetary markets. Now, we’re drawing nearer to the inexperienced bonds.

Heightened local weather consciousness isn’t just about banks and traders being conscious of the dangers related to corporations emitting giant quantities of greenhouse gases. These corporations will not be worthwhile sooner or later. 

Heightened local weather consciousness can also be about how corporations and governments can acquire beneficial financing situations if they’re able to substantiate their transition efficiency. This strengthens the inducement for transition. 

At Danmarks Nationalbank, we’re happy to take part within the institution of a Inexperienced Bond Framework for Denmark and – from January – to have the ability to difficulty inexperienced bonds on behalf of the Danish state.

Given Denmark’s inexperienced ambitions, it’s fairly pure to introduce a inexperienced authorities bond to assist the net-zero transition.

It has been an extended journey. Along with the Ministry of Finance, we now have thought-about modern methods of providing a inexperienced bond whereas sustaining the liquidity of our standard bonds.

We didn’t find yourself with a certificates mannequin in spite of everything. However we humbly imagine that the German “twin bond” mannequin has been impressed by our certificates mannequin. So, it’s only proper for us to look to our German colleagues for inspiration. 

A key motivation for issuing inexperienced authorities bonds has been to ascertain an environment friendly and clear inexperienced capital market the place inexperienced investments can discover the proper inexperienced initiatives. We discover it vital for us, as an issuer of presidency bonds, to be current on this market and assist to set an ordinary.

As well as, it has been vital for us to difficulty a inexperienced bond primarily based on the EU taxonomy, as we imagine {that a} single European normal for what’s inexperienced is a prerequisite for creating the required transparency. 

Accordingly, we discover that we’re in a position to provide a forward-looking framework by taking an specific place on present and future regulation concerning inexperienced bonds.

On the identical time, we imagine that the express authorities dedication to inexperienced spending, which the bonds guarantee, and never least the following reporting on the local weather results of the spending, helps to assist and create transparency about our inexperienced ambitions as a rustic.

Learn extra about Danmarks Nationalbank’s issuance of inexperienced authorities bonds right here. The slideshow used within the presentation of the inexperienced authorities bonds may be discovered right here.

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