Home News The Broad Majority in the Danish Parliament Allocates 5 Billion DKK from Green Budgetary Leeway

The Broad Majority in the Danish Parliament Allocates 5 Billion DKK from Green Budgetary Leeway

by Linda Bertelsen
Green budgetary leeway

The government has taken another important step towards a greener Denmark. Together with the Socialist People’s Party, the Conservative People’s Party, the Red-Green Alliance, and the Radical Left, it has distributed approximately 5 billion kroner from the green fiscal space. These are significant investments in green heat as well as nature and the environment, such as afforestation, cleanup after generational pollution, and clean drinking water, and a spending profile has been established for the harbor nature fund.

We are now taking another step in the green transition. Since the agreement on the Climate Act, more than 120 billion kroner has been allocated to the green transition. Now, approximately 5 billion kroner more will be allocated by 2030 for efforts in nature, climate, and marine environment in the agreement the government has entered into with the Socialist People’s Party, the Conservative People’s Party, the Red-Green Alliance, and the Radical Left.

The money will be used to strengthen climate, environmental, and nature efforts by planting more forests, ensuring cleaner drinking water, and prioritizing funds for cleanup after PFAS and generational pollution, which are the ten largest soil contaminations in Denmark, threatening nature and the environment. The agreement also reduces Denmark’s emissions by 0.3 million tons of CO2e in 2025 and 2030.

As one of the first measures, the agreement also ensures that the fund for expanding district heating is replenished. With the agreement, the fund is increased so that all those who have applied for funding from the fund so far can receive support, provided they meet the criteria. This means that there will be support for all the many who have applied for funding to provide green district heating to the Danes.

Minister of Finance Nicolai Wammen says: “With the agreement, we are taking another step towards a greener Denmark with more nature, cleaner drinking water, and less climate impact. We all remember the stories of Danes who had to turn off the heat and count every penny when oil and gas prices skyrocketed last fall. With green Danish district heating in the radiators, we benefit both the climate and the household budgets of Danes.”

Minister for Economic Affairs Stephanie Lose says: “I would like to thank the parties for a good agreement, which contributes to making Denmark greener. I am particularly pleased that we prioritize more funds for district heating so more Danish families can switch from gas to district heating. And that we also prioritize climate adaptation, afforestation, and clean drinking water. These are important initiatives that Danes care about. And I am pleased that we are now prioritizing 5 billion DKK for green transition, which Danes will notice in their everyday lives.”

Minister of Environment Magnus Heunicke says: “With this agreement, we allocate two billion kroner to the environment. A substantial injection of funds to address some key environmental challenges. What we particularly focus on is our aquatic environment, which needs to be significantly improved, for example, by establishing stone reefs and planting eelgrass. We also allocate considerable sums to more forest nature, and we ensure extra funding for the cleanup of the major contaminations that, unfortunately, we know are out there and threatening our water and nature. In addition to the two billion for the environment, we have reached an agreement on a 1.2 billion DKK to finance Climate Adaptation Plan 1. We need to prepare Denmark for extreme weather better.”

Minister of Climate, Energy, and Utilities Lars Aagaard says: “To achieve the green transition, we need to make the green choice easier. We do that with today’s agreement. We increase the diesel tax as part of reaching our climate goals in 2025 and 2030 and allocate more money to the district heating fund. This is a green action that works.”

This article has been translated from the Ministry of Finance’s website.