MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

Miljø- og Fødevareudvalget 2019-20
MOF Alm.del Bilag 136
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Environmental

Performance

Reviews

Denmark

HIGHLIGHTS

2019

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

OECD Environmental

Performance Reviews

THE OECD

The Organisation for Economic Co-operation and

Development (OECD) provides its 36 member countries with

a forum to work together to address the economic, social

and environmental challenges of globalisation. The OECD is

also at the forefront of efforts to help governments respond

to new developments and concerns. The Organisation

provides a setting where governments can compare policy

experiences, seek answers to common problems, identify

good practice and work to co-ordinate domestic and

international policies.

WHAT ARE EPRs?

OECD Environmental Performance Reviews (EPRs) provide

evidence-based analysis and assessment of countries’

progress towards their environmental policy objectives. They

promote peer learning, enhance government accountability

and provide targeted recommendations to help countries

improve their environmental performance. They are

supported by a broad range of economic and environmental

data. The OECD has been conducting EPRs of its member

and partner countries for more than 25 years. All reports,

and more information, are available on the EPR website:

http://oe.cd/epr.

THE EPR OF DENMARK

Denmark is one of the founding members of the OECD, in

1960. The previous Environmental Performance Reviews

of Denmark were published in 1999 and 2007. The report

reviews the country’s environmental performance since

2005. The process involved a constructive and mutually

beneﬁcial policy dialogue between Denmark and the

countries participating in the OECD Working Party on

Environmental Performance (WPEP). The OECD is grateful

to the two examining countries: Australia and the

Netherlands. The report provides 44 recommendations,

approved by the Working Party on 25 April 2019. They

aim to help Denmark green its economy and improve its

environmental governance and management. Particular

emphasis is placed on waste, materials management and

circular economy, and chemicals management.

http://oe.cd/epr

“Denmark is a long-standing

green growth leader. By

using the next ten years to

continue greening the energy

mix, reducing emissions from

transport and agriculture,

reducing waste and improving

resource productivity, it can

lead the way towards a carbon

neutral and circular economy.”

Rodolfo Lacy

OECD Environment Director

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

Denmark

Overview

Denmark is a world leader in green growth and environmental

policy. Since the 1990s, it has decoupled energy use, greenhouse

gas (GHG) emissions and air pollution from economic activity.

It has increased its focus on exporting renewable technologies

and expertise to developed countries and emerging markets,

contributing to sustainable development globally. Still, challenges

remain. Biodiversity is under pressure, with natural habitats in

a poor state of conservation. The quality of coastal waters and

air in the largest cities has improved, but is still inadequate.

Waste generation is rising and the waste management market is

fragmented. Accelerating the transition towards a carbon neutral

and circular economy will require phasing out fossil-fuelled

vehicles, further promoting sustainable and renewable energy

sources, supporting mechanisms to convert more agricultural

land to natural areas, and scaling up opportunities for recycling

and reuse of materials.

HIGHLIGHTS

OPPORTUNITIES

A governance system to engage all political parties in

environmental agreements.

Goals of 70% GHG emission reduction by 2030 (compared to

1990) and carbon neutrality by 2050.

Goal of 100% renewables-based electricity by 2030, which will

support the decarbonisation of transport and heating.

Cost-effective targeted regulation of agriculture to improve the

state of the aquatic environment.

DENMARK 2018

Population

6 million

GDP/capita

(current purchasing power parity)

New land-use planning policy to help municipalities protect

areas of interest for nature conservation.

Transition to a circular economy supported by key stakeholders.

Key player in chemicals risk assessment and management at the

international level.

USD 57 000

(OECD average is 46 000)

CHALLENGES

Biodiversity is under pressure and habitats are poorly preserved.

Low quality of coastal waters and legacy pesticides in

groundwater.

Farming of environmentally valuable land, such as peatland.

Air pollution above international standards in the largest cities.

A fragmented market for waste management.

Serious human health impacts linked to exposure to chemicals.

Total area

43 000 km

Population density

134 inhabitants/km²

(OECD average is 36)

Currency

USD 1 = DKK 6.315

EUR 1 = DKK 7.453

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

OECD

ENVIRONMENTAL PERFORMANCE REVIEW OF DENMARK

Key environmental trends and developments

Denmark has made good progress in decoupling environmental pressures from economic

growth. In particular, the country is transforming its energy sector through investment in

wind and bioenergy. The transition is set to continue thanks to ambitious medium- and

long-term targets for renewables and GHG emission reduction. A proposal has emerged

on the need to accelerate the transition to non-fossil-fuelled cars in order to move towards

carbon neutrality while improving air quality. Land use is dominated by agriculture, making

it a key sector in environmental protection. Biodiversity is under pressure and most

coastal waters have not yet achieved good ecological status.

ENERGY AND CLIMATE CHANGE

Denmark has one of the highest shares of renewables in

the energy mix in the OECD even though its hydropower

potential is not comparable to other countries (Figure 1).

Renewables have largely replaced coal in power

generation, with bioenergy and wind being the most

important renewable energy source. Denmark has

decoupled energy use from economic growth and its

energy intensity is among the lowest in the OECD.

The 2018 Energy Agreement sets targets for renewables

to account for 55% of primary energy supply and fully

cover Denmark’s electricity consumption by 2030. Given

the important role of bioenergy, the environmental

sustainability of biomass supply must be addressed.

Between 2005 and 2017, Denmark reduced its direct and

indirect GHG emissions by 27.7%. Its headline climate

goals are 70% reduction of GHG emissions by 2030

compared to 1990 (cross-party political understanding

of 25 June 2019) and carbon neutrality by 2050 (Energy

Agreement). Under EU law, by 2030 Denmark must

reduce emissions from agriculture, transport, buildings

and waste (which are not covered the EU Emissions

Trading System) by 39% from the 2005 level, one of

the most ambitious targets among EU

countries.

To prepare for carbon neutrality,

in 2018 the government proposed

halting sales of new petrol

and diesel cars by 2030, and

supporting research and

development (R&D) of low-GHG

farming and carbon capture and

storage on farmland and in forests.

Denmark wants

to reduce

GHG emissions by

in 2030 from the 1990

level

70%

Figure 1.

Denmark is a leader in the use of renewable energy sources,

Share of renewables in total primary energy supply and power generation, top ten OECD countries, 2017

100%

100

80%

60%

40%

20%

Iceland

Norway

Latvia

New

Zealand

Sweden

Denmark

Finland

Austria

Chile

Switzerland

Source:

IEA (2018), IEA World Energy Statistics and Balances (database).

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

HIGHLIGHTS

Amager Bakke in Copenhagen, Denmark

Figure 2.

Air quality remains a challenge,

number of premature deaths caused by ambient particulate matter pollution per

million inhabitants, Denmark and the OECD

OECD

2010

Denmark

& kidney

Diabetes

diseases

Chronic

respiratory

Cardiovascular

Respiratory

Neoplasms infections

& TB

OECD

Cardiovascular

2017

Denmark

100

150

200

250

300

350

400

450

Deaths per million inhabitants

Source:

OECD (2018), “Exposure to air pollution”, OECD Environment Statistics (database).

AIR QUALITY

Denmark is on track to meet its 2020 targets under the

EU National Emission Ceilings Directive for nitrogen

oxides, non-methane volatile organic compounds and

sulphur oxides. It will be more difﬁcult to meet the

targets for 2020 and 2030 on ﬁne particles (PM

2.5

) and

ammonia.

Steps to improve urban air quality include low-emission

zones in major cities, a registration tax exemption

for electric cars, particle ﬁlters for new fossil fuelled

vehicles and enhanced emission limit values for

residential wood stoves. Measures have also been taken

to reduce ammonia emissions, such as banning manure

application by splash plate and requiring slurry tanks to

be roofed.

The number of premature deaths caused by ambient

air pollution continues to be above the OECD average

(Figure 2). The welfare cost of PM

2.5

exposure is

estimated at 3% of GDP. According to Danish estimates,

3 200 premature deaths a year are attributable to air

pollution, including from abroad.

Next steps

energy, climate change and air quality

Make every effort to achieve the goal of further reducing

GHG emissions by 2030.

Develop a strategy to achieve carbon neutrality by 2050.

Continue efforts to address urban PM

2.5

pollution.

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

OECD

ENVIRONMENTAL PERFORMANCE REVIEW OF DENMARK

Key environmental trends and developments

cont’d

BIODIVERSITY AND WATER

Five national parks have been created since 2008. The

area of “biodiversity forests” is being increased; these

forests have a more stringent biodiversity protection

objective than other forests and have less intensive

management or no management at all. A new Green

Map of Denmark will help municipalities take existing

and potential areas of interest for special nature

protection into account in spatial planning.

The 2014 Biodiversity Strategy does not set targets

for protected areas. Natura 2000 sites cover some 8%

of the land area and 18% at sea. However, 68% of the

total area of habitats and 27% of species covered by

the EU Habitats Directive are in unfavourable or bad

conservation status (Figure 3), and 27% of assessed plant

and animal species are red-listed.

Despite progress, most coastal waters have not yet

achieved good ecological status as required by the EU

Water Framework Directive. The same is true for many

rivers and lakes. Nitrogen discharges into coastal waters,

which constitute the main pressure, were reduced by

around 10% between 2005-07 and 2013-15. The presence

of legacy pesticides in groundwater is a concern.

A targeted regulation of nitrogen, based on water

pollution risk, was updated in 2015. This is a step in

the right direction, as it improves cost-effectiveness by

focusing efforts on vulnerable areas.

Figure 3.

The state of natural habitats remains poor,

overall assessment of conservation status of habitats

2007

Favourable

Unknown

Unfavourable/bad

Favourable

Unknown

2013

Unfavourable/

inadequate

Unfavourable/bad

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Source:

Source: EC (2014), National Summary for Article 17 of the Habitats Directive, Report 2007‑12

Next steps

biodiversity and water

Update the 2014 Biodiversity Strategy and set

intermediate targets for protected areas and connectivity.

Provide sufﬁcient public ﬁnancial support to achieve the

goal for “biodiversity forests” on both state‑owned and

private land.

Continue to implement targeted nitrogen regulation and

estimate its side effects on GHG emissions to foster

synergies.

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

HIGHLIGHTS

Environmental

governance

and management

Denmark has a decentralised environmental governance system in which municipalities

have been responsible for most management tasks since 2007. This creates unevenness

in how environmental rules are applied across the country. Governance beneﬁts from a

culture of co-operation between political parties and government and between business

and civil society. Expertise in socio-economic impact assessment (SEIA) is strong, but not

always used systematically.

INSTITUTIONS AND REGULATION

Task forces were set up to help build municipal

capacity following a 2007 governance reform.

Municipalities share expertise and best practices

through the organisation Local Government Denmark.

To enhance policy continuity, governments form

political agreements with other parties. This

governance system has brought positive long-term

change, such as stable investment in renewables.

In 2017, the government revised the SEIA guidelines,

which cover environmental protection. However, SEIA

is not yet mandatory for government decisions or for

regulatory impact assessment of draft laws.

requires cost-effectiveness analysis and could be

supplemented by the mobilisation of private funds.

COMPLIANCE

A risk-based inspection system applies even to small

and medium-sized enterprises, which is good practice.

The system is effective in ﬁnding violations, including by

the most potentially harmful companies.

Municipalities tend to favour different measures to

promote compliance promotion and enforcement,

creating an uneven playing ﬁeld for companies. A new

enforcement strategy includes scaling up guidance

and ensuring transparent and uniform treatment of

companies.

In 2017, a panel of legal experts recommended

simplifying environmental legislation while keeping the

current level of protection.

LAND-USE PLANNING

Municipalities do spatial planning in the form of

municipal and local land-use plans based on national

guidelines.

Farmland occupies more than 60% of the surface

area and puts pressure on certain land of high

environmental value, such as peatlands. In 2018, a

Multifunctional Land Redistribution Fund (MLRF) was

established with a budget of EUR 33 million to buy

land where farming has a signiﬁcant environmental

impact and convert it to natural areas.

Environmental and farming organisations

have recommended raising the budget for land

redistribution. However, scaling up public funding

ENVIRONMENTAL DEMOCRACY

Public participation in environmental policy is high.

The Environmental Information Act, implementing

the UN Convention on Access to Information, Public

Participation in Decision-making and Access to Justice

in Environmental Matters, has a broad scope of

application.

From 2011 to 2015, the average processing time for

complaints against government decisions on the

environment was reduced from 369 to 182 days,

facilitating access to justice.

Next steps

governance

Expand the use of task forces to build capacity in the

areas where municipalities face challenges

Evaluate the cost‑effectiveness of scaling up land

acquisition and redistribution of environmentally valuable

agricultural land

Consider making SEIA mandatory for government

decisions with a signiﬁcant environmental impact

Level the playing ﬁeld for ﬁrms by ensuring that municipalities

apply compliance promotion and enforcement measures

based on similar, well‑established criteria

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

OECD

ENVIRONMENTAL PERFORMANCE REVIEW OF DENMARK

Case studies

WIND ENERGY

Increased electricity generation costs, due to the oil crises

of the 1970s, led to serious consideration of wind energy as

an alternative to fossil fuels. Denmark’s wind energy sector

started to develop in the late 1970s and 80s thanks to public

engagement and support policies. The country became a

major international player in the 1990s.Today, onshore wind

has become more competitive with coal and natural gas for

power generation. Bid prices for offshore wind projects have

meanwhile decreased, from EUR 141/MWh (DKK 1 048/

MWh) at the Anholt tender in 2010 to EUR 50/MWh

(DKK 372/MWh) at the Kriegers Flak tender in 2016. Onshore

and offshore wind turbines met around 40% of Denmark’s

electricity consumption needs in 2016.

Aalb

DENMARK

NORTH SEA

Esbjerg

FORLIG: CROSS-PARTY POLITICAL AGREEMENTS

Agreements between political parties (“forlig” in Danish) are

a particular feature of Denmark. They provide long‑term

continuity in policy implementation, which is essential for

creating a climate of trust for investors, including in renewables.

Parties concluding a political agreement undertake to support

the legislation necessary for its implementation. It is a way for

a minority government to ensure that a parliamentary majority

will support its legislative proposals before it presents them. For

example, a government proposal of April 2018, Energy for a

Green Denmark, was followed by negotiations that led to an

agreement by all parties in the Parliament in June 2018, the

Energy Agreement.

Note: Greenland and the Faroe Islands not pictured

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

HIGHLIGHTS

PESTICIDE TAX

GREEN MAP OF DENMARK

org

Denmark is one of the few countries globally to tax pesticides.

The tax, initially introduced in 1996 as a percentage of the

selling price, was overhauled in 2013. The tax rate is now

differentiated according to the pesticides’ effects on human

health and the environment. Thus products with greater

health effects, persistence, bioaccumulation or leaching

risk in groundwater are subject to higher tax rates. The tax

reform was aimed at reducing pesticide load by 40% by

2015 compared to 2011, a target that was met. Pesticide

sales and, consequently, the pesticide load indicator fell

rapidly as a result of the tax being recast. A concomitant

reduction in farmland tax has made pesticide tax reform

acceptable to farmers. Part of the revenue from the new

pesticide tax is reallocated to support organic farms.

Following amendments to the Planning Act in 2015 and 2017,

municipalities have started to designate areas of special interest

for nature protection when revising their land‑use plans. The

complete designation will make up the Green Map of Denmark.

The Danish EPA has developed a tool to help municipalities

identify these areas in their territory. Preparation of the Green

Map is a key element of Danish nature conservation policy.

Once completed, the map will provide a clearer picture of the

location and extent of protected areas, where to improve them

and where to create new areas and connecting corridors.

Aarhus

Copenhagen

Odense

INDUSTRY PARTICIPATION IN THE PROMOTION OF

CIRCULAR ECONOMY

BALTIC SEA

TARGETED NITROGEN REGULATION

Excess nitrogen from agriculture is the main source of

pressure on water quality in Denmark’s coastal waters and

fjords. The country has been a pioneer in assigning farmers

nitrogen quotas and requiring them to keep a nitrogen

balance at farm level. In 2013, a commission on nature

and agriculture proposed to introduce targeted nitrogen

regulation, a differentiated policy based on the risk of water

pollution (how much each coastal water needs protection),

thus improving cost-effectiveness by focusing nitrogen policy

on vulnerable areas. Targeted regulation was introduced in

2015 and is still being implemented

Denmark has new ambitions in espousing the concept

of circular economy. The 2013 national circular economy

strategy, “Denmark without Waste – Recycle More, Incinerate

Less”, and the complementary strategy of 2015, “Denmark

without Waste II – Strategy for Waste Prevention”, marked

the beginning of a circular approach to waste management.

To further promote circular economy, a circular economy

advisory board of 12 Danish entrepreneurs from companies

of all sizes and sectors was formed in 2016. In 2017, it

recommended increasing resource productivity by 40%,

recycling 80% of total waste and reducing waste generation

by 15%, all by 2030. The recommendations were supported

by the Confederation of Danish Industry, the Danish Chamber

of Commerce, the Danish Construction Association and the

Danish Agriculture and Food Council. In 2018, a political

agreement on circular economy was published on the basis

of the recommendations

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

OECD

ENVIRONMENTAL PERFORMANCE REVIEW OF DENMARK

Towards green growth

Green growth ranks high on Denmark’s political agenda. The country has a small, open

economy in which resolving environmental challenges by promoting clean technologies

and their exports contributes to economic growth. The country has succeeded in

decoupling growth from air pollution and GHG emissions while making some progress

in resource productivity. It is a leader in the use of environmental policy instruments in

areas such as taxation, investment, and research and innovation, although the taxation

of households at higher rates than companies is not justiﬁed from an environmental

standpoint. Denmark was among the ﬁrst countries to conduct a voluntary national review

on progress towards implementation of the United Nations Sustainable Development

Goals. Its ofﬁcial development assistance (ODA), including for the environment and

climate, focuses on private sector engagement and ﬁnance.

GREENING PRICE SIGNALS

Denmark is a pioneer in carbon pricing, with nearly all

energy-related CO

emissions subject to a price signal.

However, as industry and agriculture face a considerably

lower tax burden due to tax reductions and exemptions,

incentives for energy savings and CO

emission

reductions are unequal. Woody biomass for heating is

not taxed, as it is considered carbon neutral. Energy

utilities have put in place a voluntary programme to

ensure that the biomass used comes from sustainably

managed forests.

Environmentally related tax revenue fell to 3.7% of

GDP in 2017, though it remained the highest in the

OECD at twice the OECD average. The fall was mainly

due to reductions in motor vehicle registration tax for

fuel-efﬁcient cars.

Vehicle ownership is heavily taxed, mainly through

a registration tax differentiated by vehicle fuel

consumption. This has led to a relatively low vehicle

ownership rate, but has also discouraged renewal of the

car ﬂeet. Petrol fuel is taxed more than diesel, which

is not justiﬁable from an environmental perspective.

Shifting vehicle taxation from ownership to use would

enhance environmental effectiveness. The taxation

of heavy vehicles fails to internalise the external

environmental costs they cause. A commission has been

asked to develop a strategy on how to achieve the goal

of selling only low- or zero-emission cars from 2030

onwards.

GREEN INVESTMENT

Denmark was one of the ﬁrst countries to implement

a green energy strategy based on a broad political

agreement, creating a climate of trust for investors

and supporting a boom in renewables over the last

decade. Support for renewables has risen sharply since

2012 (Figure 4), most of it ﬁnanced by a public service

obligation (PSO) levied on all electricity consumed in

Denmark. The 2018 Energy Agreement aims to develop

renewables at conditions closer to the market, including

phasing out the PSO levy by 2021.

Public investment in rail infrastructure increased

by more than 50% in real terms between 2005 and

2016, while remaining lower than public spending on

roads. However, the Train Fund, intended to ﬁnance

investment, was later limited in scope.

Most expenditure on waste and wastewater services is

recovered from households through user fees; hence

household spending as a share

of total ﬁnal consumption

expenditure, 1.6% as of 2016,

is the highest in the EU.

Green taxes made up

High user fees may reﬂect

high quality of service

and full cost recovery,

of GDP

in 2017,

but also service provision

the highest share in the

inefﬁciency.

3.7%

OECD

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

Figure 4.

Financial support for renewables has risen sharply since 2012,

support for renewables, 2005‑15, DKK billion

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

1.88

2015

2.76

Onshore wind

Offshore wind

Biofuels

Biogas

Decentralised combine heat and power

Security of energy supply

Compensation for CO tax

R&D

0.52

0.11

2.32

0.52

HIGHLIGHTS

Note:

2005: detailed breakdown not available.

Source:

IEA (2007), Energy Policies of IEA Countries: Denmark – 2017 Review.

ECO-INNOVATION

Denmark is at the forefront of innovation in Europe,

and its patents have the highest level of specialisation

in environmental technology among OECD countries.

Measured per capita, Denmark ranks second for

environment related inventions, after Korea (Figure 5).

The Danish wind power industry is recognised as a

world leader.

Public funds allocated to R&D in the energy sector

were cut in half between 2013 and 2016. However,

the 2018 Energy Agreement plans to return to the

2013 level of DKK 1 billion (EUR 134 million) by 2024.

Business R&D spending is highly concentrated in a few

large companies. Incentives for R&D should be made

available to start-ups, which are often more innovative

than their larger counterparts.

Reducing GHG emissions by 70% in 2030 and achieving

carbon neutrality by 2050 will require developing

low-carbon technology in sectors other than energy,

including agriculture and carbon sequestration.

Denmark is one of the few countries to have achieved

the UN target of allocating at least 0.7% of gross

national income to ODA. The ODA budget was, however,

reduced in 2015, which affected environment and

climate related development ﬁnance. At the same

time, the focus has been on enhancing private sector

engagement and mobilising private investment

Figure 5.

Denmark is a leader in green innovation,

green

patents per capita, top ten OECD best performers, average

2012‑15

Korea

Denmark

Japan

Germany

Finland

Sweden

Austria

Switzerland

United States

TRADE AND DEVELOPMENT

The transition to a low-carbon, circular economy is

seen as an economic opportunity to boost exports of

environmental technology and services. Clean tech has

been the fastest-growing export sector, supported by

Denmark’s international reputation as a front runner in

green solutions, its strong export promotion framework

and its support for internationalisation of innovation

and commercial activities.

Netherlands

OECD

Note:

Data refer to patent applications ﬁled in the inventor’s country of residence according

to the priority date and apply solely to inventions of high potential commercial value for

which protection has been sought in at least two jurisdictions.

Source:

OECD (2018),

“Patents”, OECD Environmental Statistics (database).

Next steps

green growth

Reduce the energy taxation gap between households

and businesses to equalise incentives for energy

savings and CO

reduction.

Improve alignment of transport

transport‑generated externalities.

taxes

with

Continue to gradually phase out subsidies to renewables

technology as it becomes economically competitive,

and ensure that remaining support is technology neutral.

Ensure continuity of R&D in energy and other

environmentally relevant areas, including climate

mitigation options in agriculture and land use.

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

OECD

ENVIRONMENTAL PERFORMANCE REVIEW OF DENMARK

Waste, materials management and the

circular economy

Although levels of domestic material consumption and waste generation are high

compared to other OECD countries, landﬁlling has been almost eradicated and most

waste streams have recorded impressive rates of recycling and recovery. The next step

for Denmark is to accelerate the transition towards a truly circular economy in which more

waste is recycled or reused, fewer resources are used and less waste is generated. A

fragmented waste market and excess capacity in incineration are key challenges on this

path.

CIRCULAR ECONOMY

Denmark has long paved the way for circular economy

approaches by promoting eco-design, clean production,

eco-innovation and sustainable consumption.

The national strategy for a circular economy of 2018,

developed in co-ordination with the private sector,

places a strong emphasis on how business drive

transition and how government can help.

Denmark has managed to nearly eliminate landﬁlling.

It has also achieved impressive results in recycling and

recovery of most waste streams.

Figure 6.

Municipal waste generation per capita is

the highest in the OECD,

municipal waste generation in

kilogrammes per capita, 2017

Denmark

Norway

United States

New Zealand

Switzerland

Iceland

Israel

Germany

Luxembourg

Ireland

Austria

Australia

OECD

Netherlands

France

Finland

Italy

OECD Europe

Portugal

Greece

Slovenia

United Kingdom

Spain

Sweden

Lithuania

Latvia

Turkey

Canada

Chile

Belgium

Estonia

Hungary

Korea

Slovak Republic

Czech Republic

Japan

Poland

200

400

RESOURCE USE AND WASTE

Despite the progress made since 2005, the Danish

economy has low resource productivity. In 2016,

domestic material consumption per unit of GDP was

USD 1.95 per kg, which is well below the OECD average

(USD 2.42). This was mainly driven by the construction

sector in particular large-scale infrastructure projects.

Total waste generation rose by 30% between 2010

and 2016, mainly due to increased generation of

construction and demolition waste.

Denmark had the highest level of municipal waste

per capita in the OECD in 2017 (Figure 6). Municipal

waste generation has grown faster than private ﬁnal

consumption, but has been stable since 2010. More

incentives to prevent waste are needed for waste

generation to decrease.

Municipal solid waste

per capita

Household waste

Notes:

Denmark includes garden waste in municipal waste reporting. Excluding

garden waste, Denmark would rank among the six OECD countries generating the

highest levels of municipal waste per capita as of 2017. OECD aggregates show

municipal solid waste per capita.

Source:

OECD (2019), “Municipal waste”, OECD Environmental Statistics (database).

600

800

1 000

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

HIGHLIGHTS

INSTITUTIONAL FRAMEWORK

The cost of waste management services is among the

highest in OECD Europe.

Municipalities have considerable autonomy in

waste management planning, including deciding on

the treatment of most waste. Heavy investment by

municipalities in incineration plants has created excess

capacity.

A lack of harmonised rules on waste sorting

countrywide limits incentives for investment in

large-scale recycling facilities. Around half of municipal

waste is still being incinerated, although composting is

on the rise (Figure 7).

“Garbage” ﬁsh ‑ Helsingor (Elsinore), Denmark

Only

municipal waste

landﬁlled

Figure 7.

Half of municipal waste is disposed of in incinerators with energy

recovery,

municipal waste treatment 2011‑17

100%

90%

80%

70%

60%

50%

Composting

Landﬁlling

0.8

Incineration

with

energy

recovery

40%

30%

20%

10%

2011

2012

2013

2014

2015

2016

2017

Recycling

Notes:

recycling rates may be underestimated due to lack of reporting.Source: OECD (2019), “Municipal waste”, OECD Environmental Statistics (database).

Source:

OECD (2019), “Municipal waste generation and treatment”, OECD Environment Statistics (database).

Next steps

waste, materials management and the circular economy

Expand pricing of waste management services by

volume or weight to encourage prevention of household

waste.

Develop policies to minimise output of single‑use

products, such as plastics.

Better manage excess incineration capacity

reforming municipal waste management.

Harmonise criteria for sorting and collecting municipal

waste fractions to create economies of scale and

encourage investment in innovation and large‑scale

recycling facilities.

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

OECD

ENVIRONMENTAL PERFORMANCE REVIEW OF DENMARK

Chemicals management

Denmark is a standard setter in many areas of chemicals management and at the

forefront of discussions at the international level. Yet chemicals continue to pose health

and environmental risks. A high prevalence of male reproductive disorders has been

linked to exposure to certain chemicals, such as endocrine disrupters, and groundwater

contamination by pesticides remains a problem. Denmark must balance monitoring

of chemicals released in the environment with the need to continue predictive risk

assessment and management. Given the small size of the country and its chemical

industry, ensuring compliance of high-risk chemicals in imported products is key.

INSTITUTIONS AND REGULATION

Denmark has strong regulatory, institutional and

monitoring frameworks to manage the health and

environmental risks associated with the use of

chemicals and chemicals in consumer products.

Co-operation between public authorities, industry and

NGOs through platforms such as the Danish Chemicals

Forum is exemplary and should be continued.

Multi-year cross-party political agreements on Chemical

Initiatives set Denmark’s national strategies, priorities

and objectives and guarantee a broad commitment and

resources for their implementation.

MONITORING

Denmark’s comprehensive chemical monitoring system

includes the National Monitoring and Assessment

Programme for the Aquatic and Terrestrial Environment

(NOVANA) and its dedicated programmes, for example

on groundwater.

Danish research centres working on endocrine disruptor

risk monitoring and prevention have developed

biomonitoring surveys tracing the presence of chemicals

in humans.

Further increasing monitoring of chemicals in the

environment and in consumer products would help

reduce the health and environmental risk they pose.

However, this should not come at the expense of

predictive risk assessment and management. Denmark

must share budgetary resources efﬁciently between the

two.

RISK ASSESSMENT AND MANAGEMENT

Danish chemical policy focuses on ensuring that

imported chemicals and consumer products are safe

for the environment and health. To this end, Denmark

has developed a high level of expertise in chemical risk

assessment, becoming an international leader.

Denmark’s active role at EU level is evidenced by the

high number of chemicals assessed and the country’s

contribution to regulation and restriction of chemicals

(Figure 8).

A 2013 revamp of the pesticide tax to base it on the

health and environmental effects of individual products

could inspire other OECD countries. The differentiated

tax has reduced the pesticide load by 40% from the

2011 level in terms of sales (Figure 9). To make it more

acceptable to farmers, revenue is returned through a

reduction in land value tax.

of the male population

has

reduced

semen quality

40%

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

Figure 8.

Denmark is an EU leader in the evaluation of endocrine disruptors,

endocrine disruptor assessment under

the REACH or Biocidal Products Regulations, 2013‑19.

HIGHLIGHTS

26%

23%

10%

Denmark

United Kingdom

Sweden

Italy Finland

Germany

Source:

ECHA, Information on chemicals (website), March 2019.

France

Belgium

Austria

Norway

Figure 9.

Differentiated pesticide taxation reduces environmental and health risks,

pesticide sales and consumption

based on pesticide load indicator (PLI), 2010‑16

PLI/ha

5.46

Pesticide sales, load

3.6

3.45

3.92

1.9

Target

1.67

2.06

1.39

2010

2011

2012

2013

2014

2015

2016

Note:

For evaluation of the tax, data were recalculated for all years with an updated database (e.g. new classiﬁcations under the CLP Regulation) and updated data collection ﬁlters,

especially spray journal reports for the ﬁrst years.

Source:

Holze et al. (2018), Evaluering af den differentierede pesticidafgift (Evaluation of the differentiated pesticide tax).

Next steps

chemicals

Further expand risk‑based monitoring of chemicals,

including legacy pesticides in groundwater.

Strengthen biomonitoring to provide better evidence

of exposure to endocrine‑disrupting chemicals and

possible effects on human health while addressing

trade‑offs between monitoring and proactive

identiﬁcation of chemicals requiring regulatory action.

Continue performing an active role at the EU level in

identifying chemicals of concern and in risk assessment

and management of chemicals.

Strengthen efforts at the national and international

levels on compliance assurance for high‑risk chemicals

in products, including imports and e‑commerce.

MOF, Alm.del - 2019-20 - Bilag 136: OECD’s ev aluering af dansk m iljøpolitik

OECD Environmental

Performance Reviews

Denmark 2019

MORE INFORMATION

OECD Environmental Performance Reviews: Denmark 2019

The report and all data are available on

http://oe.cd/epr-denmark

Environmental Performance Review programme

http://oe.cd/epr

CONTACTS

Head of Division

Nathalie Girouard

[email protected]

Review Co-ordinator

Gérard Bonnis

[email protected]

Communications

Natasha Cline-Thomas

[email protected]

IMAGE CREDITS

All images and icons are from Shutterstock.com.

This document, as well as any data and map included herein, are without

prejudice to the status of or sovereignty over any territory, to the delimitation

of international frontiers and boundaries and to the name of any territory,

city or area.

November 2019

http://oe.cd/epr