Denmark aims to be fossil-free by 2050

18th February, 2011 by Martin Wright | 2 comments

Substantial GDP investment and tax hikes could spell a cleaner future for Denmark

Denmark could become fossil fuel-free by 2050 – at a net cost of just US$2.95 billion, according to the government’s climate commission. Its report makes the case for investing an amount equivalent to 0.5% of the country’s annual GDP in renewable energy to achieve the goal.

So why so cheap? Prices of fossil fuels will rise over the next four decades, the commission argues, while renewables become relatively cheaper – hence the small net total of investment required. In part, it is anticipating price rises through global supply crunches and international climate agreements. But it also proposes substantial tax hikes on fossil fuels phased in over two decades, rising from five Danish krone (US$ 0.90) per gigajoule in 2011 to DKK50 by 2030.

The Commission comprises independent academics and OECD experts. It was set up by the Danish government two years ago, charged with working out what it would take to create a zero fossil fuel economy, while reducing greenhouse emissions by up to 95% by 2050.

It concluded that ending the use of fossil fuels, and switching mainly to wind and biomass power, would reduce emissions by 75% compared with 1990 levels. (Further reductions would entail wide-ranging changes elsewhere in the economy, particularly agriculture.) Most of the technology to achieve this is already in existence, the commission said, and includes smart grids with electric cars feeding into as well as charging from them, and new international interconnectors. These will enable wind power to be exported when there is a surplus, with electricity imported when the wind drops. Efficiency improvements are also essential to achieve a net reduction of 25% in total energy consumed, the commission said. Denmark is already a world leader in wind power, with 3GW installed capacity. Under the commission’s plan, this would rise to between 10GW and 18.5GW – the vast majority offshore.

Responding to the report, Danish Prime Minister Lars Løkke Rasmussen promised that the government would shortly present a route map charting “how to become fully independent of fossil fuels. A plan for a transition like this will touch every part of society and every corner of politics: we are facing tough choices.” And he added: “This can’t be achieved today or tomorrow, but I know that we need to get started.”

- Martin Wright

Image credits: Maridav / istock

Featured in

No.79 - January 2011
Add your comment »

Comments

Dr.A.Jagadeesh (not verified), 16 May 2011 - 06:56

Good Post. It is possible.

I lived in Denmark and am well aware of the consciousness of Danish people in Renewables. Being a small country with about 5.5 million population, once it was leading in Wind Energy.

In Denmark Renewable energy covers 14 % of gross energy consumption and over 28 % of the electricity generated. Renewables in Denmark include wind, waste, biomass, biogas, heat pumps, solar and geothermal energy.

The promotion of cogenerated electricity and heat, one of a long series of measures to improve energy efficiency, has been extremely important for Denmark’s good results. Cogeneration of electricity and heat ensures far more efficient use of the fuels that are used in production. The most efficient CHP plants have an energy efficiency rate of more than 90%. As can be seen from the figure below, the share of district heating produced at CHP plants has more than doubled, from 39% to 80%, since 1980. Similarly, the share of electricity cogenerated with heat has gone up from just under 18% to almost 53%.

Another interesting feature for the success of Renewables especially Wind and Co-generation is Co-operatives.

In order for renewable energy project to survive, they needed strong backing from the community. In that way, Samso’s success goes way beyond the 'greening' of energy consumption. This Eco-Revolution was not only an environmental change.
Samso’s residents embraced a way to save their economy and improve their way of life.
Through investing in co-ops that financed wind power and district heating plants, islanders took personal control over their quality of life. By introducing these renewable energy projects, Samso has created new, better-paying jobs, increased tourism, and added to its economy.
“The community is more inclined to support the project because they see it as something that is done locally by local people. As such, people participate not because they are forced to by the authorities but because they want to,” says Soren Hermansen, director of the Samso Energy and Environment Office, in an interview with Chan Cheng Tuan of Sunday Mail.
Another success story has been rapeseed oil as fuel.

Rapeseed oil can be used to fuel any vehicle once a simple adaptation is made to the engine. It is cleaner than ethanol, and does not need to be refined in a clunky, energy-consuming refinery. That wouldn’t be practical for this small island.
All that you need to make your own biofuel is rapeseed, and a rapeseed press...and cows to eat the waste. Once pressed, the oil can be put directly into your fuel tank.
Indeed Denmark is a role model for other countries to emulate in harnessing clean energy technologies.

Dr.A.Jagadeesh Nellore (AP), India
Wind Energy Expert
E-mail: anumakonda.jagadeesh@gmail.com

Anonymous (not verified), 18 February 2011 - 16:10

Might be a good time to think about qualifying in sustainable energy, then. Take a look at ESMTs new MBA tracks

http://www.businessbecause.com/business-school-news/new-high-powered-tec...

Add your comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions. Case insensitive.
Image CAPTCHA
Enter the characters shown in the image.

Advert for subscriptions

Advertise block

Browse our archive

I still can't work out how you manage to put such a brilliant mix of innovative subjects together with such consistency... An inspiring read which I genuinely look forward to.

Neville White, Ecclesiastical Investment Management