Path set at COP22 is good for Danish exports

Date: 1 December 2016

It is good news for Danish exports that COP22 in Marrakech underlines the ambitions from COP21, where the Paris Agreement was negotiated. It means that global demand for renewable energy will continue to increase significantly. For Denmark it means investing in development of tomorrow’s energy solutions and demonstrating how we can utilise the progressively cheaper electricity.

Denmark will export green energy technologies for DKK 205 billion (EUR 27.55 billion) over the next five years if we can maintain our share of the global market, according to a new analysis from the Danish Energy Association. But others are poised to reap a share of the constantly growing market for green energy solutions, and that is why political will and good frameworks are needed if Denmark must avoid being overtaken by other countries in delivering the right solutions.

COP22 has confirmed that world countries will reduce their emission of greenhouse gasses. This means that we must use other types of energy than the ones used today, and that we must use the energy more efficiently.

“Yet another summit has confirmed the global course towards phase-out of fossil fuels and the increased focus on renewable energy, energy efficiency and electrification. It is good for the environment and it is good for Danish companies, which are leaders in providing the energy solutions that the world is demanding. But we need political support to continue research and development. We need to develop both technologies and new business models, otherwise other countries are ready to seize the job and growth opportunities that follow”, says CEO of the Danish Energy Association Lars Aagaard.

He points to the fact that investments in precisely research are needed in order for Denmark to maintain its leading position in terms of green energy technologies.

It is not only energy technologies that Denmark has a leading position within. The Danish energy system has recently been chosen as the best in the world by the World Energy Council based on its high share of renewable energy, high energy security of supply and low prices. At the same time, Denmark’s electricity is becoming even greener and already in 2020 close to 80% of Denmark’s electricity consumption will be covered by renewable energy.

“The solution to the world’s climate challenges are that we displace oil, gas and petrol and instead use renewable energy. This means that we must use electricity for much more than we do today”, says Lars Aagaard.

The same was emphasised by Dr. Fatih Birol, Executive Director of the International Energy Agency, when he presented the yearly World Energy Council report in London: The world is taking giant strides towards making electricity renewable – the challenge is to ensure that the renewable electricity is used in buildings, transport and industry.

“Denmark is behind in this area because taxes and dues on electricity are up to four times higher than on fossil fuels, even after we move the PSO tax away from the electricity bill, which has just been politically decided. That is why big climate task for the politicians is to find a solution to how we increase the use of the continuously greener electricity in our cars, heating and in industry, says Lars Aagaard.

He also highlights that Danish households, according to Eurostat, pay the highest taxes and dues for electricity in Europe.

 

Source: The Danish Energy Association / State of Green