gdp annually, according to the iea ( 2021 ) and imf • world : 2 per cent of gdp annually, according to the iea • eu : 2 per cent of gdp or eur 470bn annually, according to the european commission • denmark : dkk 500 - 600bn accumulated, according to finance denmark note : the bars show the import of lng to eu27. source : bruegel based on bloomberg and eurostat. thursday, 11 may 2023 role of the financial sector in the energy transition thursday, 11 may 2023 the financial sector ’ s role – in the transition and otherwise – is to provide capital, supported by sound risk - return analysis thursday, 11 may 2023 climate - related risks are often not well priced thursday, 11 may 2023 disclosure standards and a systematic collection of data support risk management climate - related exposures are opaque • climate change and the green transition have no historical precedent • companies lack data on their supply chains ’ reliance on greenhouse gas emissions lack of transparency hinders risk management • banks and investors need data to assess the impact on corporate profitability of a company ’ s failure to transition disclosures contribute to transparency • voluntary standards are expanding these years ( e. g. tcfd and ifrs / issb ) • eu requirements take effect these years ( e. g. csrd and sfdr ) thursday, 11 may 2023 climate - related activities in danmarks nationalbank thursday, 11 may 2023 climate - related activities in danmarks nationalbank responsibility mandate financial analysis ( e. g. climate stress test ) collection of financial climate data own carbon footprint responsible investment agent of the state macroeconomic analysis ( e. g. scenarios for inflation ) issuance of green government bonds a na ly tic al ag e nda ac ro ss th e c e ntra l ba nk thursday, 11 may 2023 climate change, the green transition and danmarks nationalbank ’ s objectives consequences of climate change consequences of green transition implications for danmarks nationalbank shocks to prices and income because of a warmer climate and natural disasters effects of climate policies, such as a carbon tax or subsidies understanding implications for price and financial stability more volatile energy prices recommendations for other authorities and the financial sector financial losses due to natural disasters financial institutions ’ exposure to ‘ stranded ’ assets pricing analyses transparency and systematic collection of data on exposures thursday, 11 may 2023 disclosure of the climate footprint from denmark ’ s fx reserve disclosure currently covers 10 per cent of

existing 10year danish green government bonds. page 18 of 21 • the opening of our first green bond in january 2022 was met with overwhelming demand and an initial ‘ greenium ‘ of 5 basis points. • this was more than expected and higher than most other european green government bonds. • since then, the size of the green premium has varied between 1 - 5 basis points. • the green premium declined in the early part of 2023, at a time when market volatility was high and market focus was elsewhere, at least for some investors. it is difficult to predict the green premium of the new 10 - year green bond. it is not our goal to issue at a specific green premium. slide 18 transparency about the use of proceeds from the green government bonds is essential for buyers of green bonds. • an allocation and an impact report are published to achieve sufficient transparency. • the impact report for eligible expenditures in 2021 was published earlier this year. allocation report : the central government is committed to reporting that proceeds have been allocated in accordance with the current green bond framework. page 19 of 21 • eligible green expenditures under the current framework are focused on denmark ’ s two highest - emitting sectors : transportation and energy. • these expenditures are largely aligned with the eu ’ s taxonomy. • in the transportation sector, the framework includes direct operating and capital expenditures for the rail network infrastructure and indirect expenditure through a tax exemption for zero - and low - emission vehicles. • the framework includes direct subsidy schemes and indirect expenditures through a tax exemption scheme, to incentivise the transition to solar and wind power. • with the proceeds from 2022 and the proceeds planned for 2023, issuance of approx. kr. 20 billion will be allocated to clean transportation, and approx. kr. 3 billion will be allocated to renewable energy. impact report : the central government is committed to reporting on expected climate and environmental impact through an impact report. • the report includes detailed descriptions of the allocated green expenditures along with an estimation of environmental impacts. • approx. 5 mton co2e emissions were avoided in 2021, according to the aggregated impact metric. • other output and environmental impact metrics are included in the report, such as an estimated production capability of 12, 000 gwh in renewable energy. slide 19 page 20 of 21 we are still far from reaching the climate goals of the paris agreement. the energy transition is behind schedule and has much ground to cover. recent events have shown that