Nordic and U.K. pension funds join call for climate finance

During the U.N. climate conference in Egypt, the Nordic pension funds also reported progress on climate and clean-energy investments made in 2022 toward a target of $130 billion by 2030

Nordic and U.K. pension funds joined other members of the Climate Investment Coalition on Wednesday calling for more climate finance in emerging markets.

During the U.N. climate conference in Egypt, known as COP27, the Nordic pension funds also reported progress on climate and clean-energy investments made in 2022 toward a target of $130 billion by 2030.

The Climate Investment Coalition is a public-private partnership founded by the government of Denmark, Insurance & Pension Denmark, Institutional Investors Group on Climate Change and World Climate Foundation to advocate for financial commitments into green investments.

At last year's COP26 conference, it announced the $130 billion commitment to invest in clean energy and climate solutions by 2030.

Pension funds and managers signing onto that commitment include Insurance & Pension Denmark members, ATP, Pension Fund for Reykjavik City Employees, Ilmarinen, KLP, Icelandic Pension Fund for State Employees, Pension Fund of Commerce, Skandia, SL General Pension Fund, SPP, Stapi Pension Fund, Storebrand Group and Varma Mutual Pension Insurance Co.

U.K. members include National Employment Savings Trust, Environment Agency Pension Fund, Greater Manchester Pension Fund and Merseyside Pension Fund, according to a CIC news release.

Despite financial challenges and a volatile economic environment, the first wave of pension fund reporting in 2022 indicates that the Nordic pension funds are still on course to reach their target of $130 billion by 2030, the news release said. Annual investment totals will be announced in the first quarter of 2023.

Insurance & Pension Denmark reported Wednesday that Danish pension funds have invested $9 billion in new clean-energy investments since July 2021 and are on track for new investments in emerging markets and developing economies, the release said.

But more must be done, faster; practical steps, such as finance vehicles, frameworks and partnerships will accelerate climate investments to flow to emerging markets, to ensure we support climate resilient development, said Peter Damgaard Jensen, co-chairman of Climate Investment Coalition, in the release.

CIC members said they will collaborate with international organizations, development finance institutions and governments on strategic public-private partnerships and multilateral climate finance models to accelerate climate investments in emerging markets and developing economies.