Denmark's Recovery and Resilience Plan – accelerating the green transition.

The present document lays down Denmark's intended utilisation of the approximately 11½ bn. DKK it is set to receive from the EU’s Recovery and Resilience Facility, the joint EU answer to the severe health and economic crisis caused by COVID-19. These funds will be supplemented by approximately the same amount of national funds. The main objective of the Plan is the transition to a green and climate-neutral society. It entails fundamental reforms and investments in the green transition within the sectors with the largest greenhouse gas emissions in Denmark and underpins potential significant greenhouse gas reductions. Mitigating the consequences of the COVID-19 pandemic is an important aspect of the Plan.
The Plan is categorised into seven components, which will contribute to reaching the Danish climate targets, job-creation, digitalisation and health. The seven components are: 1) Strengthening the Resilience of the Healthcare System; 2) Green transition of Agriculture and Environment; 3) Energy Efficiency, Green Heating and Carbon Capture and Storage; 4) Green Tax Reform; 5) Sustainable Road Transport; 6) Digitalisation; and 7) Green Research and Development.
As regards the green transition of agriculture and environment, investments will be made to cut greenhouse gas emissions in the agriculture sector and measures will be taken to transition to organic farming. New technologies and investment in research and development will help existing potentials to materialise. Investments will also be made to rehabilitate industrial sites and land that was contaminated due to unsustainable production in the past. The green transition also contemplates rewriting the tax code by introducing a broad tax on all greenhouse gas emissions including the non-energy related emissions in the agricultural sector.
Investing in the development of new green technologies is further a crucial part of the Plan. Therefore, it contemplates funding targeted towards four research and development missions and support for private R&D. The four missions focus on: 1) Carbon capture and storage and use of CO2; 2) Green fuels; 3) Climate friendly agriculture; and 4) Circular economy. In relation to circular economy, the plan acknowledges the need for Denmark to reduce plastic and textile waste and recycle such waste, such that new products are produced largely from renewable resources instead of fossil raw materials.