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Energy efficiency in industry
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Photo credit: Rockwool
Learn about Denmark’s experience within energy, water and resource efficiency in industries ensuring sustainable industries, while discovering cases and solutions showcasing efficiency measures across a wide range of industrial sectors.
Explore the publicationIn the development towards more sustainable heavy industries, Denmark’s top 42 emitters in the industrial sector have slashed their CO2 emissions by 17 percent on average over the past two years.
This is shown by calculations, conducted by DR (Danish Broadcasting Corporation) based on new data from the EU Commission.
Read the original article from DR (in Danish)
The slash in emissions is largely rooted in a decision made by the Danish Parliament in 2020, forging a political consensus to introduce the CO2 tax targeting the industrial sector. While this tax is slated to take effect next year, its impending implementation, alongside increased prices for EU carbon allowances, has effectively heightened the cost of environmental pollution.
Consequently, companies are finding it more economically advantageous to gravitate towards green initiatives, fostering a more environmentally conscious industrial landscape.
One of the companies from Denmark’s heavy industry sector, which have managed to slash their emissions over the last couple of years, is Rockwool.
Once known for its high emissions, ROCKWOOL has managed to significantly reduce its CO2 emissions by switching from coal to biogas for heating its ovens that melt stones to produce insulation panels. This shift has led to a 70 percent reduction in CO2 emissions at its Danish factories, dropping from over 70,000 tons to 17,000 tons in the past several years.
Frank Ove Larsen, Managing Director of ROCKWOOL in the Nordics, credits this achievement to the use of biogas and acknowledges that a broad political agreement on a CO2 tax played a role in their decision.
Denmark’s CO2 tax for its heavy industries was implemented back in 1992. It was initially set at EUR 13.4 per tonne of CO2 for electricity and fossil fuels, but its application became uneven due to exemptions and refunds. Over time, the tax underwent changes, including exemptions for certain companies under the EU quota system in 2005 and by 2022, the tax had risen to around EUR 24 per tonne of CO2, covering roughly 40 percent of emissions.
Following the Climate Law in 2020, discussions intensified regarding a CO2 tax for a more ambitious climate policy. In 2022, a green tax reform was agreed upon, aiming to gradually increase the CO2 tax to EUR 100 per tonne by 2030, thereby expanding tax coverage from 40 percent to 55.
Through a multifaceted approach, combining regulatory incentives, financing, and heightened awareness within the industry, Denmark’s industrial sectors boast an energy-intensity rate roughly half that of the EU28 average.
Presenting insights and lessons from Denmark’s resource-efficient industries, this publication introduces the Danish journey towards energy efficiency in industries.
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