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Businesses praise government’s energy initiative

Denmark must become greener towards 2030, says the Danish government in its new energy initiative. The Confederation of Danish Industry and companies like Grundfos and Kamstrup A/S welcome the initiative but call for more focus on energy efficiency.
Denmark is moving further towards more green energy and the companies are pleased. Photo: Colourbox

Publiceret: 30.04.2018
Af Lotte Malene Ruby mail

“Businesses need a new energy agreement in Denmark that will help maintain our position as leaders in green transition. The government’s initiative gives us a good starting point for the coming negotiations. We hope that a broad majority in Parliament will soon reach a settlement that will lead Denmark steadily onwards towards a sustainable society,” says Tine Roed, Director at the Confederation of Danish Industry (DI).  

DI is generally positive in relation to the government’s new energy initiative, “Energy - for a green Denmark”, and companies like Grundfos and Kamstrup A/S agree.

“In general, I’m pleased that it’s an ambitious agenda on several fronts. It’s good to continue putting Denmark on the map as a leading nation in the field of energy, so that we can demonstrate strong results in transition, efficiency and low consumption in the best way possible,” says CEO Kim Lehmann of Kamstrup A/S, which supplies solutions within energy and water metering.

Søren Erikson, CEO at consulting firm Viegand Maagøe, agrees:

“It is a robust initiative that is, on the whole, a continuation of the green transition – there are no new targets. Nor had I expected there to be – it’s about how we can continue the green transition. It is important for Denmark, for the world and for businesses,” he says.

See also: Blog - 21 companies set to become sustainable development pioneers

Wanted: Focus on energy efficiency

However, DI and several companies agree that there are also gaps in the proposal – particularly when it comes to energy efficiency.

“On the whole, it is a positive initiative, but Denmark is internationally renowned as a pioneer when it comes to energy efficiency – and this is something we must maintain. We have a large number of small and medium-sized enterprises that make a living off developing and selling solutions in this area, and it is therefore important both in relation to jobs and for Danish society as a whole,” notes Kim Nøhr Skibsted, head of communications at pump manufacturer Grundfos.

He hopes that the coming negotiations will result in higher priority being given to energy efficiency in the final agreement, which DI and Grundfos agree should be as broad as possible.

“We agree that the work to increase energy efficiency should be made more contestable. But politicians must also remember that our work to conserve energy in buildings today provides around a third of the energy savings that we must deliver each year leading up to 2020. Without allocated funds for buildings, we risk losing that crucial effort entirely,” says Tine Roed.

See also: Export of biogas technology can create 20.000 job

The future’s exports are green

In 2017, exports of green energy technology made up 5.8% of Denmark’s total goods exports, while other energy technology made up 5.3% – but new data shows that exports have come to a standstill despite growth in the global market. However, the energy initiative proposes a substantial boost of export promotion measures with an allocation of DKK 175 million in total until 2024.

“It’s wise to boost export promotion measures. The international demand for green and efficient energy solutions is increasing. Unfortunately, we are simultaneously seeing a slump in Danish exports of energy technology these years. We therefore need to step up our efforts, otherwise competitors will pass us by,” says Tine Roed.

Kamstrup A/S is one of the Danish companies that is dependent on a continued international demand for green Danish solutions.

“Of course, foreign markets are significant for us. But what is most important in terms of growth is that we actually have some solutions – that is, showcases – in Denmark, which can be used in relation to exports moving forwards. About 80% of the growth we’re talking about in the future is international,” says CEO Kim Lehman.

Six main points from the energy initiative:
- DKK 4.2 billion allocated for public procurement of green energy.
- DKK 3.7 billion allocated for a new offshore wind farm supplying up to 800 MW. The farm will be Denmark’s largest.
- DKK 4 billion allocated for new biogas and other green gases.
- Reduction of taxes on electricity and electric heating by about DKK 3.5 billion in total in 2025.
- DKK 100 million allocated annually to promote utilisation of excess heat.
- DKK 0.4 billion allocated annually from 2020-24 for a new, targeted energy-saving initiative.
Read the entire initiative “Energy - for a green Denmark”

About Denmark’s energy exports:
- Export of energy technology includes both export of green energy technology and other energy technology.
- Export of energy service includes both energy consulting and service provided by goods-producing companies such as service agreements for a wind farm.
- In 2017, export of green energy technology constituted 5.8% of Denmark’s total goods export, while other energy technology constituted 5.3%.
- The biggest buyers of Danish energy technology are still European local markets, of which the UK alone buys 25%, equivalent to DKK 18.4 billion. 

What is most important in terms of growth is that we actually have some solutions – that is, showcases – in Denmark.
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PUBLISHED: 4/30/2018 LAST MODIFIED: 4/30/2018