Denmark’s oil and gas phase-out

In December 2020 the Danish government reached an agreement with a broad majority in the Danish Parliament to phase out fossil fuel extraction in the country by 2050, starting with the cancelation of its 8th licensing round as well as all future bid rounds. North Sea production has historically been an important economic driver for Denmark, contributing around EUR 0.8 billion in revenues in 2019. The agreement also commits the government to ensuring a just transition for impacted regions and the approximately 4 000 workers (direct and indirect) currently employed by the oil and gas industry. As part of efforts to support the local area, the government has committed EUR 27 million in support for exploring the potential for carbon capture and storage (CCS) using old oil and gas wells. The plan will also explore opportunities for electrification of existing oil and gas production in the North Sea. The government expects the deal will cut production by around 9-15% and reduce annual government revenues by EUR 12 million. 

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