Reforms needed for further investment in Danish green transition - F&P

Forsikring and Pension (Insurance and Pension Denmark) has outlined six proposals designed to support greater investment in the Danish green transition, and particularly in Power to X (PtX) work.

The group argued that boosting work with PtX, which covers the conversion and storage of electricity into hydrogen or synthetic fuels, would create "great investment opportunities and a huge environmental benefit".

However, it also warned that this would require large investments and attractive framework conditions.

In particular, the group argued that Denmark needs an “ambitious” PtX strategy as soon as possible, that barriers to PtX must be removed, and that “obsolete EU” braces must go.

In addition to this, it suggested that an investment window for larger green facilities could alleviate uncertainty about storage needs, and that green certification could support the demand for green PtX.

It also emphasised that the framework conditions for PtX systems should be “attractive and long term”.

“For PtX to become an export adventure, it requires significant investments in the coming years. The large Danish industry organizations estimate that the investment need must be DKK 25bn-35bn towards 2030,” explained Insurance and Pension Denmark deputy director, Tom Vile Jensen.

“Therefore, our industry's investment capital is absolutely essential to reach its goal. In addition, it requires continued expansion with our wind energy to be able to service PtX with the necessary green electricity.”

He continued: “We can see that there are a number of grips that must be turned on in order for us to make full use of a future position of strength within PtX. We need a green hand, for example by removing barriers in electricity tariffs and creating a green deduction for these investments.

“The government's calculations show that PtX can reduce CO2 emissions by 0.5-3.5 million tonnes by 2030.

"Dansk Energi believes that it will be around 2.5 million and thus contribute to finding some of the last, "difficult" CO2 reductions if we are to reach the 70 per cent goal.”

The proposals were made amid a commitment from the Danish insurance and pension industry to invest a further DKK 350bn worldwide in green energy technologies until 2030, with part of the industry keen to invest specifically in the Danish green transition.

Considering this, the group is now planning to share the proposals with the government and involve other stakeholders in the area.

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