Budget Agreement 2022: Green Initiatives and Sustainable Energy Portfolio
The government of Denmark unveiled the 2022 Budget Agreement. It mainly focuses on core welfare, green transition, and a balanced economy through a more stringent fiscal policy after the COVID-19 pandemic crisis.
Amongst key elements of the agreement, energy-related budget allocation and objectives are set as follows:
- The renewable energy park will be expanded, to reach the 70% CO2 emissions reduction target by 2030. 2 GW of offshore wind will be added to the grid by 2030. The budget set aside amounts to DKK 12.8 million in 2022, DKK 13.8 million in 2023, DKK 13.8 million in 2024, DKK 8.8 million in 2025.
- The government intends to advance with the project of the energy island in the North Sea. The parties agreed that it would have a capacity of 3 GW and up to 10 GW in the long term. The offshore wind expansion will have to comply with Denmark’s international connections that enable green energy sales abroad. The parties agreed that the construction of the project would not significantly affect public finances. DKK 13 million is set aside for 2022, DKK 20 million for 2023 and DKK 15 million annually In 2024-2025.
- The framework for the development of wind and sun on land is to be strengthened. For the purpose, DKK 11 million is set aside.
- A carbon capture and storage strategy will contribute to reduce CO2 emissions by 0.5 million tonnes in 2025 and in 2030. A budget of DKK 4 million is set aside in 2021, DKK 272.5 million in 2023, DKK 223.3 million in 2024 and DKK 225.9 million annually between 2025 and 2032.
- The government is working on a green tax reform and a uniform carbon tax to meet its climate goals.
Want to know more about this policy ? Learn more (Danish)