Council decision (2024) amending the implementing decision on the approval of the assessment of the recovery and resilience plan for Denmark in 2021

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CCLW national policies

Denmark's recovery and resilience plan

European Commission page on Denmark's recovery and resilience plan

Information on Denmark's recovery and resilience plan

Factsheet on Denmark's recovery and resilience plan

Council implementing decision on the approval of the assessment of the recovery and resilience plan for Denmark (2021)

Council decision (2024) amending the implementing decision on the approval of the assessment of the recovery and resilience plan for Denmark in 2021 - Annex

Approved

To benefit from the support of the Recovery and Resilience Facility set up by the EU in the aftermath of the COVID-19-induced economic crisis, Member States submit their recovery and resilience plans to the European Commission. Each plan sets out the reforms and investments to be implemented by end-2026 and Member States can receive financing up to a previously agreed allocation. Each plan should effectively address challenges identified in the European Semester, particularly the country-specific recommendations of 2019 and 2020 adopted by the Council. It should also advance the green and digital transitions and make Member States’ economies and societies more resilient. The Commission validates the plan after which it effectively enters in force and EU subsidies can start flowing towards the member state.The European Commission has given a positive assessment to Denmark’s recovery and resilience plan, which will be financed by €1.5 billion in grants. 59% of the plan’s total allocation for reforms and investments supports climate objectives, including:
<ul>
<li>Support for green transport: providing premiums for the scrapping of old diesel cars, building new bicycle paths, infrastructure for electric bicycles and support to purchase green ferries. €259 million</li>
<li>Investment window and green tax reform: temporarily increasing tax deduction for companies investing in technology and software to facilitate their transition to new business models with lower greenhouse gas emissions. €407 million</li>
<li>Green research and development projects: supporting public-private research cooperation to accelerate the development of climate-friendly technology solutions. €94 million</li>
<li>Replacing oil burners and gas furnaces: expanding district heating grids into new areas and providing support to households to convert to electric heat pump systems. €65 million</li>
<li>SME support measures for energy renovation: supporting SMEs to grow and create local employment with projects such as energy renovation of buildings or boosting energy efficiency for industry. €80 million</li>
</ul>
Denmark proposed amendments to the Plan, which were accepted by the Council in an implementing decision on 2 December 2024. Amendments include producing carbon rich soils through organic farming, organic transition of public kitchens; improving energy efficiency in public buildings and households and conducting a feasibility study for carbon capture and storage; and green tax reform including a higher carbon tax and tax deduction for investment in capacity costs to reduce greenhouse gas emissions while increasing business operations.

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

Actions or measures to adapt terrestrial systems to climate change.

Aligning the skills of the workforce with the requirements of the just transition.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

Activities involving the catching, processing, and selling of fish for food, recreation, and industry.

This sector provides medical services, manufactures medical equipment, and develops pharmaceuticals to maintain and improve health.

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

The activities of industries that transforms raw materials into finished goods through industrial processes.

Activities involving the management, development, and sale of property assets.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Work that is productive and delivers a fair income, security in the workplace and social protection for all, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

A financial institution that manages a country's currency and can promote climate-related initiatives through green monetary policy and other means.

Actions to adapt and increase the resilience of rural and urban infrastructure and settlements to climate change.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

Kinetic energy of airflow transformed into useful energy, mostly electrical energy.

Production of electricity and heat from solar irradiation.

Conditions that enhance the feasibility of adaptation options. Enabling conditions include finance, technological innovation, strengthening policy instruments, institutional capacity, multi-level governance and changes in human behaviour and lifestyles.

Compulsory, required payments to the government that are levied more-or-less in proportion to the services provided. Fees and charges range from entrance fees to national parks, charges on land-based sewage discharge.

This sector provides communication services, software development, and IT solutions.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves activities to move goods and people, alongside the storage of products.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Council decision (2024) amending the implementing decision on the approval of the assessment of the recovery and resilience plan for Denmark in 2021

Target

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Greenhouse gas

Economic sector

Adaptation/resilience

Finance