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Denmark to spend EU recovery fund on green energy

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Ritzau/The Local - [email protected]
Denmark to spend EU recovery fund on green energy
Denmark's Finance Minister Nicolai Wammen greets European Commissioner for the Economy Paulo Gentiloni at the Ministry of Finance in Copenhagen. Photo: Mads Claus Rasmussen/Ritzau Scanpix

Denmark will spend some 2.2 billion kroner it is set to receive from the EU as part of the union’s post-pandemic recovery plan on green energy, the finance ministry said on Thursday.

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The 2.2 billion kroner payment, received from the EU on Thursday, is the first instalment in a total of 10.7 billion kroner that will be received between now and 2026.

The stimulus package, NextGenerationEU, is designed to bolster economies and create opportunities and jobs in the EU following the Covid-19 pandemic, according to the EU Commission website.

In total, the plan consists of €806.9 billion of EU spending.

“Up to 60 percent of the funds in the Danish recovery plan will go to green energy transition. That makes it one of the greenest recovery plans in the EU,” Finance Minister Nicolai Wammen said.

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“That portion of the money will go to things like the green tax reform which is to help Denmark achieve its [CO2] reduction target of 70 percent by 2023,” he said.

Wammen met with EU Commissioner for the Economy Paolo Gentiloni in Copenhagen on Thursday to mark the first instalment of the stimulus package.

“The Danish recovery plan is a good example for other EU countries,” Gentiloni said.

“The fund is a result of the economic consequences of the pandemic. But we want the money to be used in a future perspective. That’s why some of the money should go to green initiatives and digital transition,” he said.

Around half of the EU package is paid out to countries as subsidies, while the remainder can be applied for as a loan. Denmark has chosen not to make use of the loan option.

The money is financed by loans taken out by the EU on behalf of its member countries.

“The aim of the fund is that Europe moves forward and ensures that its economy doesn’t stagnate after the corona crisis,” Wammen said.

“That’s why the money should not just be spent on things that are needed right now, but also on long term investments in green initiatives and the digital transition,” he said.

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