The Danish Government has decided, effective 1 January 2022, to end public financing and export promotion services for fossil fuels in the energy sector abroad.
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With the new policy, Denmark contributes to reducing cash flows to fossil fuels and takes a lead internationally.
To propel the green transition and reduce global emissions, nations of the world must shift financing from fossil to green energy sources. Therefore, Denmark will become one of the first countries to end public financing and export promotion relating to fossil fuels in the energy sector abroad, except in very limited circumstances.
This decision by the Danish Government, set to take effect from 1 January 2022, means that investments, projects and activities that promote fossil fuels in the energy sector abroad will no longer be eligible for support from Denmark.
“We must do our part to shift the international financial flows away from fossil fuels. Already last year, the Government decided to end export financing for coal fired power generation and thermal coal," says Minister for Climate, Energy and Utilities Dan Jørgensen.
"The Danish Government will now push for other governments to make similar decisions and end financing for fossil fuels in the energy sector abroad. Offshore wind, solar and green fuels are the future, and we aim to inspire other countries to promote green energy investments.
The Danish Government has decided to end public financing and export promotion services for fossil fuels in the energy sector abroad. The halt will take effect 1 January 2022, apart from the limited cases that will be exempt until 2025.
The limited exemptions until 2025 include natural gas-fired power plants in the poorest developing countries, gas for “clean cookingâ€, and export related projects where natural gas is part of a transitional solution. The exemptions will only apply if a number of strict requirements are met.
The halt does not include projects, investments or activities relating to fossil fuels outside the energy sector. ■