Perspectives on Business and Economics.Vol41

53 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE Denmark’s energy strategy and the viability of bioenergy Viraj Sethi Denmark has ambitious climate goals of reducing carbon emissions by 70% from 1990 levels by 2030 and approaching carbon neutrality by 2050. The nation’s energy and electricity demands will rely heavily on the production of renewable energy sources, including wind energy and bioenergy. The sustainability of large-scale biomass combustion has been questioned. This article explains the overall Danish energy strategy and explores the viability of bioenergy as a transitory form of electricity generation for Denmark. Introduction Denmark is a small country as measured by both land area and population, yet the Nordic nation appears at the forefront of the global shift toward sustainability and climate awareness. The country borders both the North and Baltic seas; it includes nearly 400 islands and boasts 7314 km of coastline. The nation is mostly flat, with an average elevation above sea level of only 34 m. Denmark’s vast coastline and low elevation make the country vulnerable to sea level rise due to global warming. This geographic characterization in conjunction with public support for climate activism has contributed to Denmark’s desire to be a global leader in sustainability. The Danish general election of 2019 is known colloquially as the climate election, as much of the younger electorate expressed their concern about the state of the environment and overall sustainability of the nation. Climate change was ranked by 46% of voters as their top issue, propelling the Social Democrats and their commitment to sustainability to victory (Sorensen, 2019). In response to public opinion, Denmark’s government has instituted a series of goals and policies related to sustainability and climate change. Parliament’s June 2020 Climate Act outlined these goals for the foreseeable future. By 2030, the nation aims to reduce emissions by 70% from 1990 levels, which will require a reduction of nearly 24 million tons of carbon dioxide equivalent (CO2e) from 2020 to 2030. Ultimately, its goal is to become a net-zero carbon emitting nation by 2050 (Danish Parliament, 2020). The agreement specifies that Denmark must ensure the actual reduction of domestic emissions and not merely a reallocation of fossil fuel emissions outside the country’s borders, known as leakage. Additionally, the act states that Denmark’s green transition will be overseen by the Danish Council on Climate Change. As a subsequent step, in October 2020, the Danish Ministry of Foreign Affairs and the Ministry of Climate, Energy and Utilities released a long-term strategy for global climate action. This report acknowledges Denmark’s role among global polluters as a small country with fewer than six million people. The Danish strategy is one of international influence; by investing in emerging technology, such as wind power, bioenergy, central heating, heat pumps, and carbon capture, the Danes wish to position themselves as a green superpower. Their strategy of influence is two-pronged. First, they aim to use their diplomatic influence within the EU and the United Nations to push both organizations to increase regulation regarding emissions and energy usage. Second, Denmark wants to build strategic partnerships across the globe with climate allies whose environmental economies play a major role in reaching the aims of the Paris Agreement. Denmark wants to bring its knowledge and technology to countries that are developing and improving their sustainability strategies (Ministry of Foreign Affairs of Denmark, 2020). As Denmark embarks on an ambitious climate strategy, the nation’s energy mix will play a crucial role in the successfulness of its plan. This includes the use of wind turbines, solar panels, and bioenergy. The utilization of bioenergy on a transition basis as a sustainable energy source will shape the future of the Denmark’s energy mix and the climate strategies it wishes to see implemented abroad. The Danish climate strategy To achieve its sustainability goals, the Danish climate strategy is multifaceted; it relies on eliminating fossil fuel combustion while investing in and expanding sources of renewable energy along with developing new emission reduction strategies to include carbon

RkJQdWJsaXNoZXIy MTA0OTQ5OA==