Just under half of the fund, approximately 437 million kroner, will be spent on various green and sustainable initiatives for the fishing industry, the Ministry of Food, Agriculture and Fisheries said in a statement.
Spending could promote green technologies, new fishing methods and new equipment.
“I am happy we could reach such a broad agreement in which we will join together to give a historic amount directly to green conversion in fishing,” fisheries minister Rasmus Prehn said in the statement.
“We all took part in negotiations with the ambition of helping fishing to develop in a sustainable and more climate-friendly direction so that Danish fishermen are better equipped to meet the challenges of the future,” he added.
One element that the deal aims to tackle is pollution of fishing waters with dropped or discarded fishing nets.
Investment will also be made in coastal fishing and industry organisations will be supported in work to secure sales.
Industry organisation Danmarks Fiskeriforening (Danish Fisheries Association) has expressed reservations about how the money will be distributed.
“We would have liked to see (investment) in areas where the fishing industry can contribute to green conversion and climate adaptation, more money allocated for getting out in vessels so fishermen can invest in climate adaptations in fishing,” the organisation’s chairman Svend-Erik Andersen said.
Up to 200 million kroner has been earmarked administrative work such as technical support, Andersen said.
“This is a fisheries development package from the EU. And it’s very difficult for us to see that it has much to do with the development of fishing that municipalities are getting 180 million kroner for renovation of waterways in various parts of Denmark,” he also said.