In Denmark, we don’t like to brag. We’re taught not to show off. But with the Danish EU presidency and a European Commission that claims to want to build a competitive industry while lowering emissions, it’s our duty to draw attention to something that works: Denmark’s approach to the energy transition.
While some in Brussels are promoting deregulation and watering down climate ambitions in the name of competitiveness, Denmark stands as proof of a different path – one that works. Ours is a path built on long-term political commitment, strategic public investments and broad public support. That is exactly the path Europe should choose.
Denmark is both one of the heaviest regulated countries in Europe and a global leader in the energy transition. More than half of our electricity consumption comes from wind power. We are pioneers in offshore wind and home to some of the world’s leading wind companies, including Vestas and Ørsted.
Even though it is deeply rooted in our mindset not to brag, we dare say those are big achievements; but they didn’t come overnight.
Green commitment
In 1973, when war in the Middle East caused oil prices to surge, renewable energy played only a marginal role in Danish energy policy. But pressure from politicians, environmentalists and labour unions kept the idea alive through the 1980s.
When the first ‘CO₂ laws’ were introduced in the early 1990s – taxing fossil fuels and rewarding clean energy – they marked a turning point.
This article is part of The Parliament's Guide to the Danish Presidency of the Council of the EU.
Denmark has since boosted green demand by setting legally binding climate goals, such as reducing emissions by 70% by 2030 compared to 1990 levels.
This approach has pushed the market to develop and scale up sustainable solutions, creating steady demand and lowering prices over time. Along with government support for green innovation, this helped companies such as Vestas and Ørsted grow – turning renewable energy into a core part of the national economy and export strategy.
Social foundations
What made this transition stick in Denmark was the social contract behind it. For many years during the energy transition in Denmark, active trade unions, free education, unemployment benefits and reskilling opportunities gave people the confidence to adapt, as those involved in the transition didn’t have to fear being left behind.
Many workers were given the flexibility to change jobs without losing stability, including those transitioning out of fossil-heavy sectors into the green economy.
A lot of this is thanks to trade unions being part of the change early in the transition process – as well as the Danish flexicurity model which safeguards employees with upskilling, unemployment insurance and benefits.
Stability and fairness are not barriers for the green transition; they are enablers. Our social model was one of the key tools that made it politically possible to be ambitious. It turned potential resistance into support, and it gave birth to one of the world’s most competitive clean energy sectors.
That’s why Denmark’s social model is more than a safety net; it’s a competitive advantage. This advantage allowed us to lead the green transition, and it is one that the rest of Europe cannot afford to ignore.
Rolling back green legislation or cutting social protection in the name of competitiveness is not just wrong – it’s a strategic mistake. The Danish experience shows that social investments and climate ambitions go hand in hand. They are both part of the same long-term vision.
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