Adopted on 22 March 2012 by the centre-left Danish government and four opposition parties, the energy agreement is described by Climate and Construction Minister Martin Lidegaard as the “greenest and most sustainable energy village of all time in Denmark” and aims to halve coal and fossil gas consumption by 2020. However, oil consumption is expected to remain at about the same level, as transport is only marginally addressed in the agreement (Figure 1). With the new Danish energy agreement, Denmark has moved closer to the government`s goal of transforming Denmark into a low-carbon society. Denmark will provide an annual injection of 134 million euros for energy and climate research. This energy agreement will be tendered for three new offshore wind farms by 2030. The first wind farm will consist of 800 MW and will be the largest of its kind in Denmark once completed. It will be built during the period 2024-2027. Efforts to achieve energy savings will focus primarily on getting better value for money and will be critical. Energy and climate research will receive an injection of funds to free up one billion DKK in 2014. At the same time, energy taxes will be considerably relaxed and restructured, as well as a restructuring of heat surpluses. THE UNDERPINS DANEMARK`S POSITION AS ENERGY AND CLIMATE LEADER Danish Minister for Energy, Utilities and Climate Lars Christian Lilleholt is very pleased with the final agreement. By 2020, investments in renewable energy will be followed by energy-saving measures of 7% compared to 2010 (Chart 3).

This will involve increasing existing savings requirements for energy companies by 100% and developing a coherent strategy for the energy renovation of all Danish buildings. The government`s long-term goal is that by 2050 at the latest, Denmark will achieve its goal of being a low-carbon society, in which greenhouse gas emissions will be offset by the absorption of greenhouse gases.