A green reform wave in Denmark

Published 30-06-2022

In one week, the Danish Government reached three agreements with parliament covering a green investment fund of 7.2 bio. EUR, a new unified carbon tax, and a renewable energy package that will quadruple the production of solar and land wind energy by 2030 and permit a fivefold increase of offshore wind power.

Russia’s invasion of Ukraine has left the EU in a new geopolitical situation and the need for sustainable solutions and more renewable energy is more urgent than ever. The Danish Government has taken several major decisions that will fast track the green transition. With a new renewable package, it is the ambition that all gas in Denmark should be green by 2030, and to completely phase out gas heating in Danish households from 2035.

“With these agreements, Denmark will become a green power hub for Europe, with an enormous expansion of our renewable energy sector. It is crucial for the climate and to become independent of Russian energy. We are setting a clear ambition that all gas must be green by 2030, and in 2035 we will completely get rid of gas heating in Danish homes,” says Minister of Climate, Energy and Utilities Dan Jørgensen

At the same time, Denmark will send a clear message to the private sector with an ambitious CO2 tax and new a green fund. With the green tax reform, Denmark's emissions of CO2 will be reduced with 4.3 million tons by 2030. The tax reform is thus the largest single contribution to Denmark's 2030 climate goals.

“Denmark have one of the world's most ambitious climate goals, and with the agreement on green tax reform, we have taken a big step towards our ambitious goal of a 70 percent reduction of CO2 emissions by 2030. The CO2 tax is an important tool in the transition from black to green energy, and a strong signal that it is profitable to go green, while only becoming more expensive to stick to the fossil fuels,” says Minister of Climate, Energy and Utilities Dan Jørgensen

Key Facts

Renewable energy package: A broad majority has agreed on a historic expansion of renewable energy. The parties agree to offer 4 GW of extra offshore win by 2030 at the latest. In addition to 2 GW already agreed Denmark can now fivefold the production of offshore wind power over the next eight years. The agreement also aims for a quadrupling of the total electricity production from solar energy and onshore wind until 2030.

CO2 tax:  The tax reform is the largest single contribution to Denmark's 2030 climate goals of reducing emissions by 70 % by 2030 compared to 1990. With the reform, Denmark's emissions of CO2 will be reduced by 4.3 million tons until 2030. The reform is a long-term decision that creates predictable framework conditions and allows companies to adapt. At the same time, there is agreement on targeted help for green conversion of the companies that are hit the hardest by the CO2 tax. The reform thereby minimizes the risk of emissions and jobs moving abroad.

The new green fund: The fund will support the green transition of Denmark and the phasing out of fossil fuels. It covers 7.2 bio. EUR investments from 2024 to 2040.

The press offices of the Danish Ministry of Climate, Energy, and Utilities can be reached at +45 41 72 38 05