Policy

The Danish Energy Model – Efficient and Sustainable

The Danish Energy Model has shown that it is possible to sustain economic growth and a high standard of living while reducing fossil fuel dependency and mitigating climate change. This has been achieved through persistent and active energy policy with ambitious renewable energy goals. The foundation of the low-carbon transition is threefold: energy efficiency, renewable energy and system integration.

The Danish energy model is characterized by:

  • Political agreements with broad consensus in parliament, which serve as a basis for setting and achieving ambitious long-term targets
  • Holistic energy planning with integration of heat and power production, a focus on energy efficiency, and support for renewable energy by synergies between taxation schemes and policy
  • Public-private sector cooperation that has fostered important innovation and breakthroughs in the Danish energy concepts and -systems
  • Environmen­tal- and energy taxes that contribute to a better reflection of the environmental costs of production, use, and disposal in consumer prices on energy
  • An effective integration and support for renewable energy sources in Denmark combined with a well-functioning open power market in the region.

Denmark is trying to stimulate and inspire low-carbon growth globally. Through the power of example, Denmark has demonstrated that energy consumption and carbon emissions can be radically improved in a short timeframe while maintaining a sound and resilient economy. An important part of the Danish effort to mitigate climate change will be through international cooperation.

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