Denmark is ahead of the EU and seeks to reduce emissions by 70% by 2030

The Danish Parliament approved a package of measures to achieve the highest emission reduction target announced by a country to date.

Last June, the Danish Parliament approved the new Danish Green Deal which has as its main goal the reduction of 70% of Greenhouse Gas (GHG) emissions compared to 1990. This step transforms the member of the European Union (EU) into the country with the most ambitious goal announced to date in this area.

In fact, the goal of the block is lower. Last week, European Commission President Ursula von der Leyen announced that the bloc will raise the 2030 emissions reduction target from 40% to 55% – from 1990 levels – to meet the Paris Agreement and in line with the European Green Deal that seeks carbon neutrality by 2050.

Denmark’s ambassador to Chile, Jens Godtfredsen, says the ambition of the goal is that there is a “political will” to move forward. “In last year’s general election we saw that for the first time climate change is one of the most important fears of the electorate. Today we have the pandemic, but the vast majority think that we should continue this work,” he says.

The diplomat points out that the Danish Green Deal – which was approved after the government’s agreement with the main political parties – establishes a package of measures to boost the new emissions target, which will be implemented from 2020.

Broadly speaking, it considers initiatives to promote the energy transition towards a renewable energy matrix, measures to make the industry sustainable, garbage collection and treatment, among others, which will mean a reduction of 3.4 million tons of _CO2 by 2030.

A turning point of Denmark’s sustainable policy was the adoption of the Climate Change Act in December 2019. The ambassador explains that Danish law establishes that every five years the government of the day must propose to Parliament partial goals to combat climate change with a ten-year perspective. It also determines that the proposals “cannot be less ambitious than the existing ones”

“This is important, because it forces all sectors of the economy to look for ways to reduce emissions, everyone must contribute. The government has created 13 sectoral tables to discuss with companies, unions and unions how to achieve these goals,” says the ambassador.

Focus on clean energy

Among the main measures of the agreement is the construction of two wind energy islands, which will contribute to electrification with renewable energies. “In 2019, power generation came 50% from wind and the rest from natural gas and coal, but we have a decarbonization plan with renewable energy,” says Godtfredsen.

A key axis is the development of green hydrogen. “There are five or six major companies in the country that have made a commitment to invest in producing green hydrogen and using it, for example, in fuel for ships, which is a very relevant sector. Here the State will support the technological development of the plant,” explains the diplomat.

The plan also includes the energy renovation of social housing and public buildings. In detail, 500 million euros will be allocated to replace gas boilers with solar pumps or green heating plants.

The agreement also considers initiatives for the industrial sector. Among them, the ambassador highlights energy reconversion measures, for which 1,000 million euros will be allocated and the creation of the Green Future Fund of 3.3 billion euros to encourage research and development of green technologies, through credits to companies and tax deduction.

Although they do not yet define the total cost of implementing the agreement, Godtfredsen explains that the government of his country will enter this year a tax reform bill to finance the package of measures and to define the tax policy that will contribute “in the best way to the goal”.

“Aspects such as the _CO2 tax on companies or tax cuts for the development of green technologies will be discussed. In Denmark we have had green taxes for many years, we are used to it, it is not something new,” he says.

He adds that the new is “the most ambitious emission reduction goal in the world”, therefore, he anticipates that there will be an important dialogue about what it means for companies. “It is obvious and natural that we have the discussion, but in general it can be said that Danish companies are very aware of their possibilities in being the first in green technology, but also in being competitive,” he says.

Source: Diario Financiero