Case

Long-term energy policies enabling the green transition

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 policies with ambitious renewable energy and energy efficiency objectives that have been supplemented with efficient infrastructures, regulations and forward looking R&D programmes. Over the last 40 years, the Danish political framework on energy and climate has been characterised by an ambitious, long-term outlook and broad political support. This was also evident on June 29 2018, where the Danish government signed an energy agreement with the support of all the sitting parties in the Danish parliament. The agreement reaffirms and strengthens Denmark’s climate and energy goals leading up to 2030.

Political agreements on energy have been achieved with broad consensus in the Danish Parliament, where they serve as a basis for setting and achieving ambitious long-term targets. This drives and enables investments in green technologies and their deployment. In doing so, it is possible to achieve a green transition of the energy system in a cost-effective way. This is due to the fact that the political structure allows multiple actors to engage, who can then develop innovative and cheaper solutions. Green technologies then become not only the most sustainable choice but also the most cost-effective choice, where they, in many cases, outcompete fossil fuels.

The Danish case seeks to stimulate and inspire low-carbon growth globally. For example, Denmark has demonstrated that energy consumption and carbon emissions can be radically improved while maintaining a sound and resilient economy. The next steps towards the green transition and green growth are expected to be founded on strong international cooperation and partnerships.

Danish targets and milestones towards the green transition

• Becoming a net-zero emission society
• Independent of fossil fuels by 2050
• Phasing out coal in the Danish electricity production by 2030
• 50 per cent renewable energy in the total energy mix by 2030
• Renewable energy: Build three new offshore wind farms by 2030 with a total of minimum 2400 MW as well as expand the production of green biogas
• Introduce a competitive tender process, where different technologies such as onshore wind turbines and solar cells can compete on delivering green electricity at the lowest price
• Energy and climate research will receive a cash injection with a target of DKK 1 billion (EUR 134 million) by 2024
• DKK 500 million (EUR 67 million) is allocated to green transportation in 2020-2024, in order to enhance green mobility and transportation
• A modernisation of the heating sector, where both the district heating sector and the consumers can freely decide future investments, resulting in cheap heating for both companies and consumers. Electrification achieved through relaxation in electricity and electric heating taxes
• From 2021 to 2024, DKK 100 million (EUR 67 million) annually will be allocated to a market-based grant pool focused on energy savings

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Danish Ministry of Climate, Energy and Utilities
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