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      The growing risk of flooding in Denmark caused by storm surges, cloudbursts, watercourses, and rising groundwater levels is increasing the need for comprehensive climate adaptation projects. At the same time, the complex projects required to address future flood risks remain difficult to implement due to fragmented responsibilities, lengthy planning processes, governance challenges, and limited financing opportunities.

      This report analyzes the stakeholders, processes, governance models, and financing mechanisms that currently shape climate adaptation efforts in Denmark. The analysis is based on interviews with key stakeholders across the climate adaptation value chain, including municipalities, utility companies, financial institutions, developers, advisors, and research organizations. Their perspectives provide valuable insights into the structural challenges that limit the implementation of complex climate adaptation projects, while also highlighting opportunities to accelerate future climate adaptation efforts.


      The report highlights four key findings


      Morten Thorball

      Partner, Advisory

      KPMG in Denmark

      • A new delivery model is needed for complex climate adaptation projects

        Current frameworks are characterized by fragmented responsibilities, unclear governance structures, and limited coordination among stakeholders, making it difficult to deliver projects that address multiple types of flooding and span municipal boundaries.

      • The state should play a more active and coordinating role

        The report suggests that the state should take a more active role in initiating, prioritizing, and coordinating complex climate adaptation projects. Stronger national coordination can support faster decision-making, more efficient project delivery, and closer collaboration across the value chain.

      • Existing financing frameworks are insufficient

        Municipal investment caps and fragmented financing models limit both the pace and scale of climate adaptation investments. A more robust financing model is needed to support long-term investments and enable the delivery of larger and more complex projects.

      • Climate adaptation should be recognized as critical infrastructure

        Recognizing climate adaptation as critical infrastructure can support more efficient planning, approval, and implementation processes. A more standardized and scalable approach can also help reduce delivery times and strengthen protection against future flood-related damage.



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      Climate adaption

      Please note: This report is available in Danish only.



      In Denmark, we are only at the beginning of the climate adaptation journey. Billions of Danish kroner will need to be invested to protect buildings and critical infrastructure from future flooding risks. For the more complex projects in particular, the current framework does not adequately support efficient and timely delivery. Our work aims to help accelerate the realization of these projects and strengthen Denmark’s ability to adapt to a changing climate.

      Morten Thorball, Partner


      Questions about the report?

      Please contact Morten Thorball, or reach out to Frederikke Viltoft Mygind at fmygind@kpmg.com or Lone Bie Pedersen at lopedersen@kpmg.com.


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      Morten Thorball

      Partner, Advisory

      KPMG in Denmark



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