Danish government to set aside one billion kroner for green state aid — EnergyWatch

The Danish government will allocate DKK 1 billion in state aid to the green industry in 2024, says Minister for Economic Affairs Stephanie Lose (V) and Minister for Business Morten Bødskov (S) in an interview with Danish business daily Børsen.

In 2025, more money could potentially be allocated.

”We must remember that the green industry today employs thousands of workers. And in the world we are in now, where there is incredibly strong competition, it is important that we both defend and strengthen our positions of strength,” says Bødskov to the newspaper.

Stephanie Lose emphasizes that the idea of state aid is not a ”classic key issue from the Danish side”.

Therefore, she believes it is important that it is both temporary and targeted.

The state aid will be targeted at companies that make wind turbines, wind turbine components, technology for the hydrogen industry and the power-to-x industry.

Companies will be able to apply for up to 15 percent of their costs to be covered by grants or up to 20 percent by loans and guarantees.

The Confederation of Danish Industry (DI) welcomes the government’s plans for green state aid.

This is because other EU countries utilize the state aid framework set up by the EU and can therefore offer more lucrative conditions for green companies.

This is explained by Emil Fannikke Kiær, Political Director at the Confederation of Danish Industry.

”We see that it is becoming much more attractive to locate production facilities elsewhere than in Denmark. We need to get on board and make the conditions more equal for these companies,” he says.

He adds that, according to DI, Denmark does not benefit from state aid in the long run. Therefore, he calls green state aid a ”necessary evil”.

Isn’t there a risk that some companies will become dependent on this support?

”We’re not so afraid of that, because it’s not a subsidy to cover operating costs. It’s for setting up a new factory. It’s a lump sum,” says Emil Fannikke Kiær.