Denmark wants to spend a majority of the European Union’s fund for post-pandemic recovery on financing its efforts to achieve an ambitious climate target.
The Nordic country has earmarked 60% of its share of the EU crisis fund on green initiatives, clearly above the 37% required by the conditions of the fund. Denmark expects an allocation of 11.6 billion kroner ($1.9 billion), according to its national plan seen by Bloomberg News. The mandatory plan will be shared with the European Commission and made public later.
“The recovery plan has made it possible to accelerate our green transition and will contribute to financing Denmark’s ambitious target,” Finance Minister Nicolai Wammen said in an email, adding his country sees the crisis as an opportunity to focus its investments.
The finance ministry has already spent a significant part of its allocation on a tax reform introducing a short-term tax cut on investments into emission reduction, research and green reforms in polluting industries like agriculture and transport. All initiatives are supposed to contribute to the government’s efforts to achieve its target to cut carbon emissions by at least 70% by 2030, higher than the European Union’s goal of 55%.
Wammen, who oversees a small and open economy relying heavily on exports, urged his European peers to use the fund to address climate issues in a similar fashion. He hopes to see Danish companies, which include wind power giants like Orsted and Vestas, to profit from an increased focus on green investments.