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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure DK-2022-14/3013 Updated – measures in Denmark

Green Energy Agreement to promote the development of electricity

Klimaaftale om grønstrøm og varme 2022

Country Denmark , applies nationwide
Time period Open ended, started on 01 April 2022
Context Green Transition
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Louise Fabricius (Oxford Research)
Measure added 20 January 2023 (updated 19 December 2024)

Background information

The Danish government aims to invest in green energy to contribute to the climate agreement on green electricity and heat as an extension of the policy paper ‘Danmark kan mere ll’ (April 2022).

Based on this, ten parties represented in the Danish parliament, including the government, signed an agreement to promote the development of green electricity. The purpose of the agreement is to increase the production of solar and wind energy in Denmark through a wide range of measures.

Content of measure

The agreement on green energy and heat will enable a fourfold increase in the production of solar and wind energy on land by 2030 and a fivefold increase in offshore wind power. Furthermore, the ambition is that all gas in Denmark by 2030 will be green, and the abolition of gas stoves in households by 2035.

Following the Russian invasion of Ukraine, Denmark has increased their ambition to become independent from Russian gas and accelerate the green transition in doing so. Among other things, Denmark aims to quadruple the production of solar and wind energy on land by 2030 and make all gas green in Denmark.

DKK 2.3 billion (€309 million) has been allocated for the replacement of oil and natural gas boilers with green heat. The heat package reduces greenhouse gas emissions by 0.7 tonnes of CO2 by 2030. As part of the green energy agreement, the government has furthermore agreed on a green tax reform that makes it more attractive to choose green solutions that reduce negative impacts on the environment.

Updates

The following updates to this measure have been made after it came into effect.

28 July 2023

In June 2024, a follow-up agreement was signed in connection with the climate agreement on green power and heat 2022. The agreement contains the concrete implementation of parts of the initiatives on better conditions for investment in district heating and on increased consumer protection. The agreement aims to promote investment in district heating by extending the depreciation period for pipelines to 45 years, which will both make district heating more financially advantageous for consumers and facilitate the deployment in gas areas. In addition, consumer protection is strengthened through a price cap to ensure transparency and low heat prices, while municipalities will be able to support the establishment of thermonet projects on market terms, which can help communities switch to greener heat supplies.

Use of measure

No information available.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

There has been no social partners' involved in this measure.

Views and reactions

No views on this measure.

Sources

Citation

Eurofound (2023), Green Energy Agreement to promote the development of electricity, measure DK-2022-14/3013 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2022-14_3013.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.