European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

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-2023-17/3592 Updated – measures in Denmark

DKK 636 million to green transition

636 millioner til grøn omstilling

Country Denmark , applies nationwide
Time period Open ended, started on 25 April 2023
Context Green Transition, Digital Transformation
Type Other initiatives or policies
Category Promoting the economic, labour market and social recovery into a green future
– Financing the green transition
Author Carsten Jørgensen (FAOS, University of Copenhagen), Louise Fabricius (Oxford Research) and Eurofound
Measure added 28 November 2024 (updated 02 October 2025)

Background information

The initiative aims to support Denmark's shift towards a sustainable and low-carbon economy. This funding is crucial for reducing greenhouse gas emissions and creating green jobs, particularly in regions most affected by the transition.

This initiative is part of the EU's Just Transition Fund, which supports regions facing significant socio-economic challenges due to the transition towards climate neutrality. The Danish government has established a committee to allocate these funds effectively, ensuring they support projects that reduce emissions and promote green growth while securing a just transition

Legal reference: The initiative is grounded in the EU's Just Transition Mechanism, which is part of the European Green Deal. This mechanism aims to ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind.

Content of measure

The 'DKK 636 million (€ 48.7 million) for green transition' initiative targets regions in Denmark most affected by the shift to a low-carbon economy, specifically North and South Jutland, to be distributed until 2027. The funding is aimed at projects that reduce greenhouse gas emissions and create green jobs. Eligible recipients include local governments, businesses, and organizations involved in sustainable development and innovation. The allocation per project varies based on the project's scope and impact, but significant portions are earmarked for large-scale initiatives like the development of pyrolysis technology, which alone has received DKK 196 million (€ 22.7 million) within the measure.

Updates

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

26 August 2025

As of August 2025 there is no updated or announced list on the number of jobs that have been created as a result of this measure.

The Danish Business Authority has, in collaboration with and supported by the Just Transition Fund in January of 2025, launched a new initiative to help small and medium-sized companies (SMEs) become suppliers in green technology value chains, including CO2 capture, Power-to-X, pyrolysis, and circular economy solutions. Supported by the Just Transition Fund with a 50.5 million DKK (6,8 million euro) grant pool, SMEs—especially in North and South Jutland—can apply for funding of 1–5 million DKK (134-670 thousand euro) for investments, consultancy, skills development, and networking.

Use of measure

The initiative is expected to benefit approximately 10,000 workers and numerous companies in North and South Jutland. The funding aims to support projects that create green jobs and secure a just transition and reduce emissions. As of now, specific uptake numbers are not fully available, but initial estimates suggest significant interest from local businesses and municipalities. Detailed information on the number of realized beneficiaries and the effectiveness of the initiative will be provided in future updates as projects progress.

Target groups

Workers Businesses Citizens
Particular professions
Sector specific set of companies
SMEs
Larger corporations
Start-ups
Applies to all citizens

Actors and funding

Actors Funding
National government
Social partners jointly
Trade unions
Employers' organisations
Company / Companies
Other social actors (e.g. NGOs)
Local / regional government
EU (Council, EC, EP)
European Funds
Local funds
National funds

Social partners

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

Trade unions Employers' organisations
Role Consulted Consulted
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

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

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were consulted in the design, implementation, and monitoring of the '636 million for green transition' measure. Their involvement was requested by the institutional setting to ensure a fair and inclusive approach. Key organisations involved include trade unions and employers' organisations, while some smaller NGOs were not directly involved. Social partners contribute by providing insights on labor market impacts and ensuring that the transition supports both workers and businesses in affected regions.

Views and reactions

Social partners are generally supportive of the measure. Trade unions and employers' organisations have expressed positive reactions, highlighting the initiative's potential to create green jobs and support affected regions. They appreciate the focus on just transition, ensuring that workers are not left behind in the shift to a low-carbon economy. However, some concerns have been raised about the need for clear implementation strategies and continuous monitoring to ensure the funds are used effectively.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities
      D - Electricity, Gas, Steam And Air Conditioning Supply D35 Electricity, gas, steam and air conditioning supply
      H - Transportation And Storage H49 Land transport and transport via pipelines
      H50 Water transport
      H52 Warehousing and support activities for transportation

This case is not occupation-specific.

Sources

Citation

Eurofound (2024), DKK 636 million to green transition , measure DK-2023-17/3592 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2023-17_3592.html

Share

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