Denmark’s energy goals 2050 and ways to reach them Address by Asser Rasmussen Berling, consigliere at the Danish Embassy in Rome. Firenze, 14 May 2014 CHECK AGAINST DELIVERY

Introduction First of all, on behalf of the Danish government, I would like to warmly thank the jury of Il Monito del Giardino. The prize indeed puts focus on a very important issue, and the Danish government is deeply grateful for this honour extended by the jury here in the beautiful city of Firenze. Today, we are here to celebrate initiatives to lead our common earth to a greener future. And green initiatives are indeed necessary. If you look at the hard facts, we have a long way to go. CO2-emissions continue to rise. Oil prices will continue to rise, despite new oil findings. Electricity prices will remain high in the European Union. And today's share of fossil fuels in the world energy mix is the same as it was 25 years ago. 82 percent! The message is clear: We will not be saved by market developments. We have to save ourselves. And we have to start now, work where we can and do it smart. Some sceptics say, that economic growth can only be achieved by increasing CO2 emissions. However, Denmark proves that point wrong.

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Since 1980, the Danish economy has grown by almost 80 pct., while our energy consumption has remained more or less constant, and CO2-emissions have been reduced.

The Danish Energy Agreement And we have laid our course for the future: In March 2012 a historic new Energy Agreement was reached in Denmark. The Agreement contains a wide range of ambitious initiatives, bringing Denmark a good step closer to the target of 100% renewable energy in the energy and transport sectors by 2050.

In many ways, Denmark has started the green transition well. The Energy Agreement moves us up a gear, with large investments up to 2020 in energy efficiency, renewable energy and the energy system. As indicated, we will move towards a fossil fuel free society with 100 pct. renewable energy by 2050. 

We aim for 100 pct. renewable energy in electricity and heat supply in 2035.

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Coal is set to be phased out from Danish power plants by 2030.

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And by 2020 we have set a target to cut our emissions of CO2 by 40 pct.

No Danish energy agreement has ever been reached by a larger and broader majority in the Danish Parliament than this one; and no Danish energy agreement has previously covered such a long time horizon.

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In other words, a solid framework has been provided for the huge private and public investment to be made in the years to come. In Denmark we have chosen a strict focus on renewable energy and energy efficiency. Both are aspects which we believe will play a much larger role globally in the coming years. Energy efficiency A crucial element in the transition to 100% renewable energy will be that Denmark uses less energy by switching to more energy efficient technologies. Otherwise, economic growth will push up energy consumption and make it disproportionally expensive to expand the share of renewables in the energy supply.

Moreover, investment in more energy efficient technology will often quickly pay back itself. It is especially important to invest in retrofitting buildings. Extensive retrofitting is only carried out a few times in the life span of a building.

The Danish government has initiated various initiatives to make energy consumption more efficient.

In 2013 and 2014, energy savings realised by energy companies have to increase by 2.6% of final energy consumption compared to the 2010 level. From 2015 to 2020 this figure will rise to an annual 2.9% compared to the level in 2010. In comparison, the EU’s Energy Efficiency Directive suggests a yearly

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reduction up to 2020 of 1.5% of 2010 final energy consumption (excl. transport).

Energy companies are obliged to realise energy savings in enterprises and households by offering subsidies or consultancy, for example. The initiatives will target industry and buildings.

As a result of these and other initiatives, Danish gross energy consumption will decrease by 7.6% in 2020 in relation to 2010. Renewable energy In Denmark more than 40 pct. of electricity is produced from renewable energy sources. 30 % of electricity in 2012 came from wind. And we continuously expand our capacity. Thermal capacity based for example on sustainable biomass will supplement wind power as will strengthened interconnection with neighbouring countries. Denmark has sufficient renewable energy resources to satisfy energy consumption in the long term. The Energy Agreement ensures a substantial expansion of wind power in particular, corresponding to the annual electricity consumption of 1½ million households. Consequently, approximately 50% of Danish electricity consumption will be covered by wind power in 2020. In comparison, the share was 2% in 1990.

Denmark has now taken a long range of initiatives to expand renewable energy production, including through new offshore wind turbines, increasing net

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capacity of onshore wind power, and investing heavily in research and development.

Consumption by industrial processes is also to be converted to renewable energy. Therefore, the Energy Agreement has among other things laid down a new green business scheme of almost 70 million euro annually to promote the efficient use of renewable energy in enterprises.

This has been part of the motivation of the jury for giving the Il Monito del Giardino prize to Denmark, as was the Danish decision to reduce individual heating based on oil and gas in buildings substantially and promote renewable alternatives. Conclusion We often hear that greening the economy is too expensive. That it cannot compete with coal at the current price level. To this I will say three things. Firstly, this is a message without the necessary nuances. Land based wind power has come a long way during the last ten years and is now almost able to compete on market terms with conventional fuels. Secondly, oil prices will rise despite new oil discoveries. Gas prices will remain higher in Europe than in the US. And coal – well, many coal plants are old, inefficient and facing replacement. Add to that the enormous costs burning coal incurs on the climate and on general health from air pollution.

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Thirdly, as the quest for energy leads all countries to seek new avenues for harvesting energy, the ones who invest in research and development for green energy have a head start. For example, wind energy is big business in Denmark, contributing massively to Danish exports, as well as giving employment to thousands of people. This has only been made possible due to a clear political strategy. Before I conclude my speech, allow me once again to thank you for this prize. On behalf of the Danish government, I accept it humbly and hope that the Danish Way is able to inspire also here in Italy. Thank you.

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