The Danish Climate Forest Fund (Klimaskovfonden) is an independent, state-owned fund under the Ministry of Green Transition of Denmark, and is managed by an independent board appointed by various ministries.
The Danish Climate Forest Fund was set up by the Danish Parliament with cross-party support to plant trees and transform low-lying soil into natural areas and wetlands. The Danish Climate Forest Fund aims to:
1) promote and finance cost-effective afforestation with the establishment of forest edges and the removal of low-lying soils primarily within the land use, land use change and forestry (LULUCF) sector, particularly with a view to achieving climate effects in the form of net reductions in greenhouse gas emissions,
2) ensure documentation of the achieved net reductions in greenhouse gas emissions, cf. no. 1, and
3) support the achievement of Denmark's climate goals.
The Fund may use the following forms of support measures and business dispositions, including combinations thereof:
1) Initiation of, participation in and financing of afforestation with the establishment of forest edges and the removal of low-lying soil;
2) Establishment of demonstration projects and planning and facilitation of collaborations between investors and landowners or assistance therefor, cf. no. 1;
3) Payment of one-off compensation to landowners for lost income associated with the extraction of low-lying soil, cf. no. 1, coverage of landowners' expenses associated with the registration of encumbrances, restrictions on availability, etc., which must be registered on their property as a condition of project support, and payment to suppliers, contractors, etc. for the services of these actors in the projects supported by the fund, cf. nos. 1 and 2; and
4) Sale of CO2 units.
