Policy Context

Overall, Denmark is committed to directing 30% of its ODA towards climate action. Of climate ODA, Denmark aims to to direct 60% towards climate adaptation.

Denmark is committed to being a global leader in climate action and aligning with the Paris Agreement. The strategy aims for a 70% reduction in emissions by 2030 and climate neutrality by 2050. The focus is on inspiring and influencing the world while ensuring a socially just green transition. Key elements of Denmark's strategy include:

  • Global Climate Ambition: Influence entities to commit to ambitious climate goals; and collaborate with various stakeholders for efforts in climate adaptation, resilience, and sustainable development;
  • Reducing Greenhouse Gas Emissions: Advocate for a global green transition, targeting emission reductions in major emitters and promoting sustainable development in developing countries;
  • Adaptation and Sustainable Development: Drive resilience and adaptation initiatives. Prioritize climate-oriented development cooperation in the poorest countries and promote Danish solutions globally;
  • Shifting Financial Flows to Green Energy: Contribute to redirecting global financial flows from fossil fuels to green investments. Support the transition of financial and energy systems, fostering investments in renewables; and
  • Private Sector Collaboration: Work with the private sector to implement green Danish solutions globally. Foster partnerships with businesses focused on sustainable practices.

ODA Spending

How much ODA does Denmark allocate to climate projects?

In 2021, Denmark allocated a total of US$416 million to climate funding, including funding for projects with climate as a principal objective and for projects with significant climate change components. Climate finance represented 23% of Danish bilateral allocable ODA in 2021, lower than the DAC average of 24%. In 2021, Denmark ranked 14th among DAC donors for its total climate funding and 15th for its climate funding as a percentage of bilateral ODA.

Denmark’s climate-related ODA overall increased between 2017 and 2021. In 2019, Denmark’s climate funding reached US$563 million (29% of bilateral allocable ODA). This was largely due to a major increase in significant funding from 2029 to 2019. Principal funding increased from US$76 million (5%) in 2017 to US$246 million (14%) in 2018.

In 2021, Denmark spent US$249 million on climate adaptation, of which US$139 million was cross-cutting projects related to both adaptation and mitigation.

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