Denmark exports more than 100 Bn Danish kroner (£12Bn) of energy technology annually1. However, if the world is to achieve climate neutrality by 2050, an investment of over 60 trillion Danish kroner per year is needed, according to the consulting firm McKinsey2. These funds should be directed towards expanding green energy, implementing district heating, and adopting energy-efficient technology—areas where Denmark stands as a global leader in technology.
“Green technology and transition are Denmark’s export opportunity of the century,” states the Danish government. But maintaining even the nation’s current market share in an ever more competitive global market requires a strategic effort.
Even the best product is difficult to sell if it remains hidden in the warehouse instead of being displayed in the shop window. Therefore, it is crucial to provide assistance and guidance to companies that venture into markets outside of Denmark, benefiting the Danish economy and employment. Such assistance exists in the form of the energy export scheme. However, it appears that a curtain is unfortunately about to be drawn in front of the shop window. The funding for the export scheme is set to decrease partially in 2024 and almost disappear completely in 2025.
The export scheme is a success that boosts Danish exports and serves as a prime example of how the government and businesses can work together towards the common goal of creating growth and prosperity in Denmark. The export scheme currently costs around 50 million Danish kroner annually. At the very least, this level of funding should be maintained in the next year’s budget. If that doesn’t happen, Danish industry will lose an important component in its efforts to secure as large a share as possible in the green export market. Reducing support for Danish companies’ export initiatives would happen at the same time when the rest of the world is making massive investments in the green transition. Notably, the US’s $2.7 trillion climate package and the EU’s response with the Green Deal Industrial Plan have sparked historic green investments. The opportunities have never been greater. The energy export scheme contributes to Denmark’s ability to seize the “export opportunity of the century.”
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References
- Denmark’s energy technology exports increase
- Six characteristics define the net-zero transition, McKinsey
Source
Århundredets eksportmulighed for Danmark må ikke forspildes [The export opportunity of the century for Denmark must not be squandered], Berlingske, 2023-06-24
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