For many the new green future the planet needs to fight climate change and achieve better biodiversity outcomes is characterized as an expensive process and perhaps a “luxury” that many countries cannot afford. However, there is also the counterargument that the green transition is not something that will harm the economy of developing countries.
Somewhere there, the voices that call the governments around the world with one phrase: “Do it like Denmark” are increasing! Until recently the small Scandinavian country was entirely dependent on imported oil and coal. Today, over 30% of the country’s energy needs come from renewable energy sources and the expectation is that this percentage will reach 50% by 2030 and by 2050 the country will be 100% independent of fossil fuels overall.
In recent years the harmonization of economic growth with ambitious green policies has been Denmark’s trademark for decades. Over the past 40 years, Copenhagen has managed to decouple economic growth from overall energy consumption: Denmark’s GDP has grown by just over 70%, while the country’s energy consumption has remained unchanged. Water consumption was also reduced by 40%. This proves that it is possible to create growth without using more energy.
Typical are the words of the Danish Minister of Climate Policy Dan Jorgensen, who points out that “the green transition is not something that will harm the competitiveness of countries that depend on fossil fuels, if it is done in the right way. If done the right way, it will do the exact opposite.”
“The cheapest energy is the energy you don’t use. When you manage to introduce systems where you not only save energy but also use it many times, that will make you more competitive,” he adds.
Green transformation
Denmark has gone through a green transformation that started in the 1970s. When it started, the term “green” didn’t exist, and nobody was talking about the environment, and certainly not about climate change. Then there was a global oil crisis, an energy crisis, and Denmark decided it was time to become independent of imported energy by starting to produce renewable energy and become much more energy efficient.
“The transformation has led to substantial economic growth – from 1990 to today we have doubled the size of the economy, but we have also reduced carbon dioxide emissions by almost 50%. This is good news because it shows that fighting climate change is not something that will hurt your competitiveness or make you a less prosperous industrialized country. In fact, you will have the opposite results because you are forced to develop new technologies, use more rational solutions and if you are smart, make something innovative that others can use and buy,” notes Jorgensen.
The paths of independence from fossil fuels
There are many paths that could lead to a green, low-carbon economy. As analysts point out, in addition to the long-term policy approach, the focus on four pillars is also decisive:
- energy management,
- ensuring water quality and sufficiency,
- shifting to a circular economy
- and creating smart, green and vibrant cities.
But no single technology and no single industry can achieve the green transition on its own. 35 years of dedicated efforts to build a diverse economy have taught that a holistic approach and collaboration are paramount to developing realistic and sustainable solutions. An example: liquid municipal waste in almost all cities is used to generate electricity and the excess heat is channeled into the district heating system.
Denmark has received high accolades from various international organizations such as the World Bank, the OECD, the World Energy Council and the International Energy Agency (IEA). Having an energy system with large amounts of green energy, high energy security and competitive prices, this small country has become a symbol and hub for data banks, offering an attractive business environment to large multinational investors.
