A Danish solution to a global challenge?

Accordingly, Danish energy policy has been based on a broad consensus in the Danish Parliament which has provided stable, long-term political framework conditions for the green sector. This sector today employs around 58,000 people in Denmark, and is driven by innovation of internationally competitive products and services.

We have strong footholds within key areas of the energy sector such as wind, district heating and energy efficiency. In addition to this, we are experiencing impressive growth in emerging areas such as smart grid technology and bioenergy.

Such development has been, and still is, a juggling act between policy-driven and market-driven actions. Gradually, the market is starting to take the lead as green technologies begin to follow the same rhythm of supply and demand as exhibited by any other product on the free market. There is no doubt that a strong, interconnected regional energy market and extensive research into green solutions will be essential if we want to reduce global warming, secure a high standard of living and sustain economic growth.

Action outside the negotiating rooms

Global climate negotiations are important, but reaching a consensus takes time and, as pointed out by the International Energy Agency, if we are to keep the increases of global warming under 2 degrees Celsius based on pre-industrial levels, then we desperately need to make progress before 2020, when the new global climate agreement is expected to enter into force. Owing to these factors, Denmark has constantly reiterated its commitment to, and support for, action outside the negotiating rooms both up to 2020 and beyond.

Our aim is to help ensure the viable development of the global energy sector by promoting capacity building, cost-efficient energy saving and the reduction of emissions. Through international cooperation, we seek to assist governments and foreign energy sectors to realise cleaner and more reliable energy systems in the future.

"Danish assistance is focused on the energy sectors of emerging markets"

Danish assistance is focused on the energy sectors of emerging markets. The support we provide serves the dual purpose of improving local energy systems while at the same time highlighting Danish expertise in the area of delivering green solutions. This helps to increase the profile of Denmark’s expertise and opens the door to expanding markets for Danish energy products and solutions. This ‘green growth dividend’ is an attractive spill-over effect of our green energy policies and is best explained with reference to a few examples:

Country-to-country cooperation

The Danish Energy Agency supports emerging economies to combine sustainable future energy supplies with economic growth. We cooperate with China, Mexico, Vietnam, South Africa, Ukraine, Turkey and Indonesia, assisting with technical analyses, policy development and climate strategies.

Based on our experience with renewable energy and energy efficiency, we help these countries to transform their energy sectors so that they can deploy an increasing number of low-carbon technologies.

Such country-to-country cooperation also has a specific focus on the Danish energy model and Danish technical solutions, with the focus being on integrating a high degree of renewable energy into the system. In the Danish case, this includes a considerable amount of both onshore and offshore wind power.

Such an emphasis on wind power has resulted in Danish companies becoming world leaders in wind technology. It is this technology which forms a part of many of the projects in our partnering countries which see wind-power integrated into energy systems for the benefit of both the climate and the economy.

District heating

Denmark has a district heating cooperation with China and Ukraine: two countries with extensive networks of their own. Danish companies have unique experience in harnessing surplus heat for the benefit of neighbouring cities, and in both China and Ukraine there is considerable potential for exploiting surplus heat from industry for use in district heating.

Danish companies are supporting the Chinese city of Anshan to make use of surplus heat from a steelworks in order to generate low-cost heating for the more than one million residents. This case also shows a high potential for scaling up utilisation of surplus heat from the steel industry.

"Cooperation on district heating schemes also focuses on energy efficiency"

Cooperation on district heating schemes also focuses on energy efficiency. An analysis from Ukraine shows that if the country were able to increase its energy efficiency to levels on a par with the EU average, annual energy savings would be equal to the total amount of gas that Ukraine imports. We are therefore currently involved in assisting Ukrainian heavy industry to become more energy efficient, an undertaking which includes utilising surplus heat in district heating.

Denmark’s ‘Agro-Edge’

Danish dairy production is one of the most efficient in the world when measured against greenhouse gas emissions per unit of milk produced. This is mainly due to dairy producers having worked intensely on improving the utilisation of resources, for instance by refining farm management.

By focusing on carbon footprint reduction, farmers gain significant financial benefits. Energy savings alone can make a significant economic difference for the individual farmer. Therefore Danish dairies offer dairy farmers an on-farm carbon assessment, a so-called ‘climate check’. This calculates the farm’s carbon footprint and inspires the farmer to reduce greenhouse gas emissions further. The assessment is voluntary and free of charge.

The farmers have nothing to lose, and everything to gain. The on-farm carbon assessment gives Danish dairy farmers a competitive edge through simple practical techniques that could also benefit farmers in other countries around the world.

The future will be low carbon

These examples are just the tip of the iceberg of Denmark’s action-oriented efforts to advance the global climate agenda outside the climate negotiations. They will hopefully contribute to raising the level of ambition in the COP21 climate agreement, especially in relation to the so-called Workstream 2 of the UN climate negotiations that facilitates actions to close the pre-2020 emissions gap. Ambition and realism are equally important as countries will be far more willing to put forward ambitious targets for actions that will result in tangible benefits such as improved public health and energy security.

"The Danish energy model can pave the way for further reduction targets and action on a much broader scale"

Show, don’t tell. The Danish energy model can pave the way for further reduction targets and action on a much broader scale in order to mitigate climate change globally, and to avoid the severe changes to our climate.

A lot is already happening on the international stage. Prices on renewables, in particular wind and solar, have fallen significantly and are increasingly competitive with traditional fossil fuels. Attractive electric cars and new energy storage solutions are entering the global market. This shows that low-carbon solutions can play a key role in future energy systems and that markets are getting ready to embrace the low-carbon economy: crucial steps on the road to reaching our long-term goals.