THE DRIVE TO INNOVATE

ECO-EFFICIENCY: Denmark has a cool climate, a large transport sector, highly efficient industry and intensive agriculture. That puts demands on both energy use and the environment. It has also forced Danish companies to think innovatively to utilise energy wisely in order to protect the environment.

Up to the 1970s Denmark depended exclusively on imported fossil fuels. But the energy crisis in that decade thrust the use of energy into sharp focus, with soaring oil prices spawning a broad range of energy saving campaigns. In the construction sector, attention turned to the low energy house concept, with its improved insulation, and double or triple glazing. Solar and geothermal heating became topics that neighbours discussed over the hedge.

Energy prices became the driving force for innovative thinking in many industries: in the district heating sector, Danish pipe manufacturers created the world’s first pre-insulated pipes; furnace manufacturers greatly improved their combustion technologies; and Danish companies developed electronic control systems to prevent energy waste.

Energy saving became a mantra for industry. Every product and process, from the miniature to the massive, was re-thought – “How can this be made more energy efficient?”. It was the cost of energy which drove the innovation.

A special chapter in the story concerns the Danish wind turbine industry, which to date has supplied around 40% of the world’s wind energy installations. State support enabled the wind energy industry to develop its experience and know-how, assisted by intensive research in aerodynamics, mechanics and electronics. It has given the industry an international lead which it continues to maintain.

High taxes Denmark probably has higher environment and energy taxes than any other country in the world. The aim is to provide incentives to both private consumers and companies to reduce energy consumption or change to more environmentally friendly alternatives. There are taxes on drinking water and the disposal of waste water. Every company pays waste disposal charges and private households pay for garbage collection. There are high taxes on petrol, diesel, oil and electricity. There are taxes on packaging and there are taxes on substances that promote increased CO2 emissions. In 2006, the Danish state received a total income in taxes and duties of EUR 103 billion of which energy and environment taxes accounted for approximately EUR 5.5 billion. In addition to various taxes and duties, Danes pay 25% VAT on all goods and services.

- More than 40% of wind turbines installed worldwide come from Denmark - Denmark has kept energy consumption at 1970 levels, while enjoying economic growth of more than 70% - Non-fossil sources account for 15% of Denmark’s total energy consumption

- The Danish concept for district heating from Combined Heat and Power plants is gaining ground worldwide - Denmark has the world’s strictest environmental requirements for land, water and air - 93% of Denmark’s waste water is treated both mechanically and chemically at 1,500 purification plants

- Denmark produces 15 million tons of waste annually. 65% is recycled and 30% is burnt, 95% of which is used for energy production. The rest is disposed of. - Danish exports of eco-efficient technologies are worth EUR 7 billion annually - The Danish energy and environment sector employs 60,000 people in 420 companies