Denmark's coalition government approves new climate agreement

The Danish government and parliament have signed a climate agreement that targets a 3.4 Mt reduction in CO₂ emissions. As part of the deal, the country will approve the creation of two offshore wind hubs totalling 5 GW and that of a 1 GW offshore wind project in Hesselø and will invest in CO₂ capture (carbon capture and storage, CCS) and green fuels. In addition, Denmark will introduce a tax on emissions of CO₂ and greenhouse gases (GHGs).

In May 2020, the government unveiled plans to build two offshore wind energy islands in the Baltic and North Seas with a total capacity of 4 GW by 2030. One of the two 2 GW hubs would be built on the Danish Baltic island of Bornholm, while the second hub would be located on an artificial island in the North Sea. A third offshore wind hub, with a capacity of 1 GW, would be developed at Hesselø.

Like all EU member states, Denmark has a binding 40% GHG emission reduction target for 2030 in its nationally determined contribution (NDC) but the country has adopted more ambitious targets. In 2010, the Green Energy roadmap set a target of reducing GHG emissions by 40% by 2020 and by 80%-95% by 2050 compared to 1990. This should be achieved through higher wind power generation (50% of power generation by 2020) and a coal-fired generation phase-out by 2030 (-50% in coal consumption by 2020). In December 2019, the Danish parliament adopted a new Climate Act with a legally binding objective to reduce GHG emissions by 70% by 2030 (compared to the 1990 level). Denmark now intends to reach net-zero emission by 2050 and to cover 100% of power consumption with renewable energy by 2027.