##s in line with our policy for responsible investing, and notably, in line with the paris agreement. • the metrics are based on current carbon emissions, whereas the paris agreement sets a goal of climate neutrality by 2050. page 14 of 21 slide 14 following the approach of the ecb, we report the climate footprint using three distinct metrics. • the metrics are the weighted average carbon intensity ( waci ), carbon footprint and absolute financed emissions. • the metrics measure different aspects of the emissions associated with the investments, and all three have advantages as well as drawbacks. • i will not go into these here, as it quickly becomes technical. the footprint from government bonds fell slightly from 2021 to 2022. • the lower waci reflects that the share of our bond holdings that was invested in countries with high emissions relative to gdp dropped in 2022, as compared with 2021. • this reflects a restructuring of the bond holdings that had nothing to do with the climate. the footprint from the etfs also fell from 2021 to 2022. • the lower waci indicates that a smaller part of our etf holdings was based on equity and corporate bonds issued by companies with high emissions relative to revenue in 2022, as compared with 2021. • this was intended, as the etf holdings were shifted towards etfs that comply with the eu ’ s paris - aligned benchmark. page 15 of 21 slide 15 i now turn to our issuance of green governments bonds on behalf of the danish state, which we started in 2022. first some background : the green bond market has increased significantly over the previous years, but it remains small. • prevailing market conditions caused debt issuance volumes to decline in 2022, across all categories of bonds, green bonds included. • sovereign green bonds made up around 14 per cent of total green bond issuance globally, see the right - hand chart. more than 50 per cent was issued by companies. • however, the green government bond market remains small, with around 3 per cent of overall bond issuances. we decided, together with the danish government, to issue green government bonds starting in 2022. • issuance of danish green government bonds is expected to be around 15 per cent of our total issuance of domestic bonds in 2023. • the green government bonds are still a small share of outstanding government bonds, constituting just around 2. 5 per cent. page 16 of 21 slide 16 our motivation for issuing green bonds is

nils bernstein : the fiscal compact speech by mr nils bernstein, governor of the national bank of denmark, at the hearing on the fiscal compact conducted by the european affairs committee of the danish parliament, copenhagen, 9 february 2012. * * * what is the essence of the fiscal compact? the new element is that there will be even more focus on the structural budget balance and that the commitment to fiscal discipline will be anchored in national legislation. the structural balance is the cyclically adjusted budget balance stripped of the effects of cyclical developments and special circumstances. in denmark ’ s case, special circumstances include pension yield tax, proceeds from north sea oil and this year also reimbursement of early retirement contributions. in future, it will be a requirement that the structural deficit for a single year does not, as a main rule, exceed ½ per cent of gdp, and that any substantial deviation will trigger an automatic adjustment mechanism to restore the structural deficit to balance or surplus. as i have already mentioned, these provisions are to be incorporated into national legislation. at a later point, the commission will issue guidelines for the content of the automatic adjustment mechanism. indications are that it will be an obligation to take action, not an automatic mechanism as such. the structural deficit is an expression of the “ sustained ” balance situation, be it a budget deficit or surplus. until now, the main focus area – besides observing the 3 - per - cent requirement for the actual budget balance – has been to ensure continuous annual improvement of the structural balance by at least 0. 5 per cent of gdp for member states not observing the medium - term objective of balance or surplus. in practice, one of the weaknesses has been that the adjustment process has been too slow. another weakness has been that the structural balance was overestimated in the good times before the financial crisis. the value of currentaccount deficits, housing bubbles and loss of competitiveness as indicators that output and employment were well above the underlying potential was underestimated. this pattern has exacerbated the deficit during the cyclical downturn so that, on aggregate, debt has increased over the business cycle. if the government budget must, as a main rule, be structurally in balance every year, this reduces the likelihood that the total debt grows over time. deficits in bad times must be matched by surpluses in good times. under the existing stability and growth pact, the structural balance has mainly been used to lay down a medium - term objective – that is,