UNFCCC WORKSHOP ON THE PREPARATION OF NATIONAL COMMUNICATIONS FROM ANNEX I PARTIES Policies & measures and national circumstances in Denmark Bonn March 2000 Ture Hammar Danish Energy Agency Ministry of Environment and Energy

Overview l national circumstances l international development l reduction targets l policies and measures

1970s: Pioneering and Crises l Environment Pioneering »EPA & grassroots »Clean up dust, lead, sulphur etc. »Immissions and diffusion l Energy Crisis »DE 76 »Danish Energy Agency and Ministry »El & heat & gas institutions l Playing field dynamic »municipal reform »new actors »cimate issue unimportant

1980s: Expanding activities l Environment regime »SO2, NOx bubbles »planning of resources »EIA, technology assessment l Energy sector expands »Gas & district heat structure »Renewable & CHP options »National and local planning l Playing field crowded »Huge and versatile involvement »World Commission report

1990s: Integration & reorientation l Sustainability & environment »CO2 & climate convention »globalisation »new integrated approaches l Sustainable energy »E 2000 and E 21 »Energy efficiency, CHP and renewables »Reform l Playing field »Internationalisation »Merger of environment and energy »Climate, Agenda 21

International Liberalisation l EU liberalisation »affects energy sector & environment »favours technologies »new actor paradigm »confusion and backlash »preoccupies sector for 10 years + »playing field not satisfactory »environment may be loser

Rio + Kyoto: sustainability? l Rio missed agreement on sustainable energy l Climate convention gave angled approach to energy l Kyoto Protocol has many loops and loopholes »general ceilings »six gases »transfer possible in all dimensions »complex paradoxial mechanisms »unclear commitments l Will COP 6 bis deliver an answer?

International implementation instruments l UN/GEF l UNDP, WB, UNEP, UN/ECE l Bilateral donors l PEEREA, IEA/OECD l Aarhus Conference »sustainable energy »national commitments »win-win co-operation l EU action plan and renewable/CHP directives l Baltic Sea co-operation

Danish reduction targets l First target set in % CO 2 in 2005 l Voluntary target in % inside EU bubble l Kyoto target EU - 8% , six GHGs l Danish bubble-target - 21% »Danish total emissions varied with up till 28% annually over the 1990s due to import and export of electricity in wet and dry seasons of Scandinavia!!! l When corrected for electricity trade, Danish reduction is (almost) progressing as scheduled

Reduction balance /12 l Reductions by sector, total % (4.4% p.t. missing)

Policies & measures in energy sector l Energy intensity minus 55% over 3 decades »Energy efficiency in end use l Cleaner energy »CHP on gas & renewables »Renewable energy 35% of total energy over 3 decades »Outphase condensing power production and coal

Energy efficiency: - Wide range of policies & measures l Taxation/subsidies/funds l Voluntary agreements l Labelling, standards, procurement l Campaigns, rebates, education l DSM as PSO in energy companies

Electricity reform: - Sustains renewable energy and CHP l Protection of CHP and renewables l CO2 quota for large CHP and condensing »minus 5% each year »benefits to CHP »grandfathering l Tax/subsidy/grant for small producers l Green certificate market »start 2002 »EU directive

Transportation l Taxation/subsidies l Management l Public transport l Urban planning l International standards l Labelling

Other measures l JI & CDM & trading programmes l International & regional co-operation l Schemes for GHG gases l Agriculture, industry, forestry, etc. l R&D l Greenland l Protective measures

Conclusion l National circumstances combine »national tradition »impact from energy crises »broad dedication to environmental issues l International basis is complex due to »many versatile institutions »lack of practical formula between market and environment policies l Danish reduction targets are ambitious but heavily dependent on EU conditions l Domestic policies & measures cover a wide range of options and emphasise domestic political will