DANISH BUSINESS COMMUNITY MEETS CLIMATE CHALLENGES

CLIMATE SUMMIT: Denmark is one of the countries that have committed themselves worldwide to make the largest reduction of greenhouse gas emissions. The Danish business community offers technical solutions which have enabled Denmark to create continued economic growth without increasing the emission of these gases.

By Line Lagoni Leonhard

In 2009, Denmark will host the international climate summit (COP15), which aims to produce a treaty to replace the Kyoto agreement. Both Danish politicians and Danish business leaders agree that there is a need for common international obligations to meet the environmental and climate challenges. And they agree that Denmark, together with other rich countries, must lead by example and show how economic growth is possible without increasing energy consumption and the emission of greenhouse gases.

“Denmark has increased its GDP by 70% without increasing the country’s energy consumption”

Connie Hedegaard, minister for Climate

“COP15 gives Denmark a really good opportunity to show the world that it is possible to decouple economic growth from CO2 emissions, something a lot of countries find difficult to believe,” says the Danish Minister for Climate and Energy, Connie Hedegaard. “In the last 25 years, Denmark has increased its GDP by 70 per cent without increasing the country’s energy consumption. At the same time, Denmark has committed itself to one of the largest reductions in greenhouse gas emissions – 21% in the period 2008-2012. We will lead by example and show that you can take the climate and environmental challenges seriously at the same time as exports are growing. Today, at least 420 Danish companies employing 60,000 people consider themselves environmental companies, and Danish exports of environmentally efficient technologies have doubled during the last 10 years to DKK 35-40 billion.”

PLANS TO SHOWCASE DANISH ENERGY SOLUTIONS AT 2009 CLIMATE SUMMIT Amagerforbrænding, one of Denmark’s largest waste-to-energy plants, plans to create a showcase for Danish energy solutions, World Energy Showroom, when Denmark hosts the UN climate summit (COP 15) in 2009. Amagerforbrænding is located near Copenhagen Airport and the Bella Centre – a large conference venue – where the summit will be held. Ulla Röttger, director of Amagerforbrænding says: “The idea is to show a number of the solutions we are good at in Denmark, in the middle of a major city. The showroom will not market individual products, but whole solutions and concepts. With a location close to the airport, the showroom can be an entry to other solutions in Denmark such as renewable energy in Frederikshavn or hydrogen in Hobro.” The area where Amagerforbrænding is located already features a number of other energy and environmental technologies: a demonstration geothermal plant for district heating; a coal/oil/ biomass fired power station; a purification plant and an offshore wind farm. There are also plans to make a number of demonstration plants including one for production of biofuel from waste.

“The Danish business community has overtaken the politicians”

Steen Gade, politician

Steen Gade, environmental spokesman for the Socialist People’s Party, which forms part of the opposition in the Danish parliament, largely agrees with the Minister for Climate and Energy, but thinks that even more can be done. “I think Denmark should use the hosting of the climate summit as an occasion to update its environmental policy. The fact that so many Danish environmental companies are at the forefront internationally is due to political initiatives that date back many years.” Although Steen Gade thinks that new political initiatives are lacking, he is positive about the Danish business community’s competences in environmentally friendly technology and sustainable development. “The Danish business community has overtaken the politicians,” he says and adds: “The business community is ready with technologies but lacks the market, and the government must help them to gain that.” The Danish industrial giant Grundfos is one of the companies that is ready with new technologies. The company has for example developed a pump which can be built into the engine of new cars and reduce the consumption of diesel by as much as 7%. Grundfos is an OEM manufacturer and sells its pumps to the world’s largest manufacturer of engines, Cummins, which uses the pumps in its own products. Grundfos has furthermore entered an agreement with China’s largest engine manufacturer, Guangxi Yuchai Machinery Company Limited. Grundfos will supply pumps to 2,000 buses which will be put into operation in association with the Olympic Games in Beijing.

Other Danish companies are far ahead regarding environmentally friendly technology. Wind turbine manufacturer Vestas Wind Systems today accounts for approx. 28% of all the electricity produced by wind energy worldwide, giving the company the largest market share.

“Denmark has by far the toughest requirements regarding water environment”

Peter Taarnhøj, BioKube A/S

Among SMEs, Bio-Kube is a supplier of environmentally friendly technology. Peter Taarnhøj is a member of the board in the company, which produces biological wastewater treatment plants and has achieved considerable success in very few years.

“To us, it has clearly been an advantage that Denmark has by far the toughest requirements regarding water environment,” says Peter Taarnhøj. “It has meant that our wastewater treatment plants automatically meet international requirements, because they have been built to comply with the very strict Danish environmental requirements in this area. And that has made it easier for us to start our exports,” he says.

“...second generation biofuel can make a difference”

Steen Riisgaard, Novozymes

Danisco and Novozymes are also among the elite in environmentally friendly and sustainable development. The two companies are global leaders in development of enzymes for production of second generation biofuel.

“There are not many alternatives to liquid fuel, and this is where second generation biofuel can make a difference,” says Steen Riisgaard, President and CEO of Novozymes. He expects that Danisco and Novozymes can be on the market with second generation biofuel in as little as four years.

Energy policy staff employee Henrik Lilja of the Danish Federation of Small and Medium-sized Enterprises, has a positive view of the new technologies, but reckons that Denmark could be in an even stronger position if new technologies were combined with those technologies that have already been established and proved functional: “If new technologies such as bioethanol and hydrogen energy are to stand a chance of covering Danish energy consumption in the long term, overall energy consumption needs to be reduced by means of known technologies and energy-saving solutions,” says Henrik Lilja.