Denmark has announced plans to raise up to DKK 10 billion (USD 1.6 billion) through its first sovereign green bond, set to be the first issued under the European Green Bond (EuGB) standard.

The EuGB regulation, adopted in November 2023 and effective from December 2024, was introduced by the European Commission to set a “gold standard” for green bonds, addressing greenwashing risks and strengthening the EU sustainable finance market. Proceeds must be invested in EU Taxonomy-aligned activities, with up to 15% flexibility for sectors without fully defined criteria, provided issuers explain allocation clearly.

Issuers under the EuGB framework must also meet strict transparency requirements, including detailed use-of-proceeds disclosures, green transition plans, and reporting on progress.

Denmark’s 10-year bond will launch in the second half of 2025, beginning with a syndication before becoming part of the government’s regular auction programme. Proceeds will support green initiatives such as energy sector transformation, sustainable transport, agricultural land conversion, and nature restoration.

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