A blueprint for tomorrow – Denmark’s path to environmental sustainability
Abstract: Denmark has set ambitious environmental sustainability targets and achieved exemplary progress. However, there are challenges arising from external geopolitical and internal demographic issues that may hamper Denmark’s future progress to environmental sustainability. This case studies Denmark’s success in environmental sustainability so far and questions how the country can overcome its challenges to continue its progress.
Keywords: Sustainable development, environmental sustainability, Denmark
Authors:
Nayab Chaudhary, corresponding author, International Business student from Jamk University of Applied Sciences, School of Business, naychaudhary23 (at) gmail.com
Murat Akpinar, Jamk University of Applied Sciences, School of Business, Rajakatu 35, 40200, Jyväskylä, Finland
When Mette Frederiksen was elected as the youngest Prime Minister in Danish history in June 2019 [1], one of her goals was to strengthen Denmark’s position as a pioneer in sustainable development. Her government placed a strong emphasis on environmental sustainability and adopted the Climate Act 2020, which aimed to reduce greenhouse gas emissions by 70% from their level in 1990 until 2030 and to become carbon neutral by 2050 [2]. The Danish government agreed to introduce the world’s first carbon tax on agriculture in 2024, requiring farmers to pay 300 Danish Krone (ca. 40 Euros) per ton of carbon dioxide emissions from 2035 onwards [3]. In addition, Denmark’s Maritime Plan of 2023 allowed up to 30% of the country’s sea territory to be available for offshore wind development [4]. Thanks to policy initiatives, the Climate Programme 2024 report noted that Denmark has been progressing well towards its environmental sustainability goals.
Mette Frederiksen’s Social Democrats were still the leading party in the March 2026 election with 21.9% of the votes, but this was significantly lower than their 27.5% in the 2022 election and 25.9% in the 2019 election, challenging the Social Democrats in forming a majority coalition in the Parliament [5]. Will the Prime Minister be able to pursue the realization of Denmark’s ambitious environmental sustainability goals, or will the continuing geopolitical tensions in Ukraine and the Middle East, together with a possible future tension with the United States about Greenland, hamper Denmark’s progress?
Denmark’s history and economic development
Denmark, with a population of ca. 6 million people and a surface area of 43,094 square kilometres, is part of Scandinavia, surrounded by Germany, Sweden, the North Sea, and the Baltic Sea (see Exhibit 1). Its capital is Copenhagen, and the larger Danish Realm also includes the autonomous territories of the Faroe Islands and Greenland in the Atlantic Ocean (see Exhibit 2).
Denmark has been home to the Vikings for about 250 years, between 800 and 1050. It was also part of the Kalmar Union together with Sweden, Norway, Iceland, and Greenland from its establishment in 1397 until its breakup in 1523 [6]. Having survived World War I and World War II, the Danish economy recovered thanks to the boost in the economy from the Marshall Plan and the exports of design goods, furniture, and agricultural products [7]. Denmark experienced its economic golden age in the late 1950s and the 1960s, whereby foreign trade grew from about 40% of gross domestic product (GDP) in 1948 to about 60% in 1970 [8].
Denmark joined the European Economic Community as of January 1, 1973, further strengthening the country’s position as a small open economy integrated into global markets [9]. Although growth slowed during the two oil crises of the 1970s, it gained momentum during the 1980s and the 1990s with increasing globalization and the creation of the Single Market in the European Union on January 1, 1993. Denmark preserved its currency, the Danish Krone, and thus did not join the Eurozone. The Danish economy’s growth during the first quarter of the 21st Century has been positive overall except in 2009, following the Global Financial Crisis of 2008, and in 2020, following the COVID-19 pandemic (see Exhibit 3). As of 2024, Denmark achieved a GDP per capita of 71.210 USD, which was significantly up from 13.820 USD in 1980, reflecting a cumulative increase of 3.8% per annum over 44 years [10]. Denmark’s GDP per capita in 2024 compares significantly better than Finland’s (53.290 USD) and Sweden’s (57.020) figures, but less than Norway’s (86.590 USD) for the same year.
The Danish economy is predominantly service-oriented, and this sector, which includes business services, finance, insurance, information technology, consulting, retail, real estate, hospitality, and creative industries, made up approximately 75.2% of the national GDP in 2024 [11]. The industrial sector, which includes manufacturing, mining, utilities, and construction, accounted for about 23.7% of GDP, and agriculture, forestry, and fishing contributed approximately 1.1% to GDP [12]. Denmark is well known for its globally competitive positions in the pharmaceuticals and life sciences industry (e.g., Novo Nordisk company), renewable energy industry (especially in wind turbines, e.g., Vestas company), and shipping, logistics, and maritime industries (e.g., Maersk company).
Denmark’s exports totalled 133.7 billion USD in 2024, heading mainly to Europe (ca. 75.0% of Denmark’s total export value), Asia (ca. 13.0%), and North America (ca. 7.7%) [13]. The largest export destinations were Germany (15.9% of Denmark’s total export value), Sweden (9.3%), the Netherlands (6.9%), the United States of America (6.3%), and Norway (6.2%) [14]. In 2024, Denmark’s imports totalled 123.2 billion USD, and they were mainly from Europe (ca. 75.7% of Denmark’s total import value), Asia (ca. 16.2%), and North America (6.3%) [15]. The largest suppliers of imports were Germany (15.7% of Denmark’s total import value), Sweden (11.5%), the Netherlands (6.9%), China (6.3%), and the United States of America (5.7%) [16].
Denmark ranked as the world’s 10th most competitive country in the world, thanks to its excellent performance in the dimensions of macro-economic stability (rank 1), business dynamism (rank 3), skills (rank 3), labour market (rank 3), institutions (rank 7), ICT adoption (rank 9), and innovation capability (rank 11) [17]. It also ranked as the world’s 9th most innovative country [18].
Denmark’s progress to environmental sustainability
Denmark has been a pioneer in adopting green policies and initiatives. From the early 21st century, Denmark was one of the three European countries to adopt wind energy, along with Sweden and Spain [19]. Together with Costa Rica, it launched in 2021 the Beyond Gas and & Oil Alliance, an international coalition of currently 24 member states, aiming to facilitate the managed phase-out of oil and gas production [20]. As of 2024, Denmark’s renewable energy capacity reached 13,539 megawatts, more than tripling from 3,969 megawatts in 2008 [21].
The main renewable energy industry in Denmark is wind. Wind energy production peaked in 2023 with 19.43 terawatt-hours, tripling from 6.72 terawatt-hours in 2009 (see Exhibit 4). Thanks to also increases in production of energy from other renewable sources, such as solar, biofuels, and hydropower, Denmark’s share of energy consumption from renewable sources increased from 20.6% in 2010 to 45.2% in 2023 (see Exhibit 5). Denmark became an expert in wind energy technologies and the leading exporter of wind turbines [22]. In 2023, the Danish wind industry, accommodating companies like Orsted and Vestas, had a turnover of over 6 billion euros [23]. Denmark continues to invest in offshore wind farms to reduce its dependency on fossil fuels and promote sustainable solutions [24].
Urban life in Denmark is vulnerable to the consequences of climate change, including the rise of sea levels, rising temperatures, droughts, and storms [25]. Copenhagen faced the worst rain in Denmark’s history in 2011. In just 30 minutes, the city’s largest hospital was flooded with approximately 200 mm of rain, resulting in the evacuation of the building and causing 1.6 billion euros in damage [26]. To avoid these kinds of losses in the future, the Ministry of Climate supports robust energy and climate governance for urban development under the Climate Act 2020 [27]. In line with this policy, many Danish households and businesses have invested in energy-efficient buildings, and companies such as Rockwool (insulation), Velux (windows), Danfoss (heating applications), and Grundfos (water management) are global leaders in making buildings more energy-efficient [28].
As evidenced in its 2022 – 2025 strategy, the government of Denmark is also committed to spending ca. 0.7% of its GDP as financial aid to promote the use of renewable energy in developing countries [29].
Thanks to these, Denmark had the highest score among all countries in the Climate Change Performance Index in 2026 [30].
Challenges ahead and open questions
Despite its success in adopting policies for environmental sustainability, Denmark needs to address a few underlying challenges that might hinder its progress towards its environmental sustainability goals. One challenge is to continue to develop urban spaces that can support economic and social growth without compromising environmental sustainability [31]. Rapidly growing cities like Copenhagen demand extensive investments for new projects and existing infrastructure upgrades. Rising energy costs and budgetary constraints due to ongoing wars in Ukraine and the Middle East may limit such investments in the near future.
A second related challenge is that Denmark still needs to invest heavily in renewable energy projects to achieve its ambitious environmental sustainability goals [32]. Such investments are also in danger of being postponed under the current geopolitical tensions.
A third challenge is the country’s ageing population [33]. This implies higher demands for healthcare and long-term care services, which are forecasted to increase costs by around 1.1% of GDP by 2050 [34]. It also implies a possible shortage of workforce in the future, which will endanger the realization of Denmark’s sustainability goals.
A fourth potential challenge can arise if the United States insists on acquiring Greenland, an autonomous territory of Denmark. Tensions increased in early 2026 when President Donald Trump mentioned the possible use of military force and the introduction of 25% additional import tax on goods from the European Union, both of which he later reversed during his speech at the Davos Conference [35].
Considering these challenges, there are several questions to answer. First, what should the Danish government do to achieve its sustainability goals such that its climate governance under the Climate Act 2020 will serve as a model for other countries aiming to achieve carbon neutrality? Second, in what ways can Danish cities be developed to mitigate the possible adverse effects of climate change? Third, what are the social implications of Denmark’s climate change initiatives, and how can communities better engage with these efforts in a transition towards a sustainable future?
Exhibits
Exhibit 1. The map of Denmark
Source: Nations online (n.d.). Map of Denmark. https://www.nationsonline.org/oneworld/map/denmark-political-map.htm
Exhibit 2. The map of the larger Danish Realm
Source: Ministry of Foreign Affairs of Denmark (n.d.). The realm. https://kina.um.dk/en/about-denmark/the-realm
Exhibit 3. Denmark’s annual GDP growth rate (2000-2024)
Source: World Bank Group (n.d.). GDP growth (annual %) – Denmark. https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=DK
Exhibit 4. Wind energy production in Denmark from 2009 to 2023
Source: Statista (n.d.). Wind energy production in Denmark from 2009 to 2023. https://www.statista.com/statistics/991065/wind-energy-production-in-denmark/
Exhibit 5. Share of energy from renewable sources in Denmark from 2010 to 2023
Source: Statista (n.d.). Share of energy from renewable sources in gross total energy consumption in Denmark from 2010 to 2023. https://www.statista.com/statistics/1481909/share-of-total-gross-renewable-energy-consumption-denmark/
Endnotes
[1] Copenhagen Democracy Summit (2024). Welcome remarks. https://copenhagendemocracysummit.com/2024/sessions/3179/welcome-remarks.
[2] European Parliamentary Research Service (2024). Roadmap to EU climate neutrality – Scrutiny of Member States: Denmark’s climate action strategy. https://www.europarl.europa.eu/RegData/etudes/BRIE/2024/767173/EPRS_BRI(2024)767173_EN.pdf
[3] The Copenhagen Post. (2024). Overview: Denmark’s climate policies and latest progress to net zero. https://cphpost.dk/2024-10-07/news/climate/overview-denmarks-climate-policies-and-latest-progress-to-net-zero/
[4] Ibid.
[5] CNN World (2026). Denmark’s Frederiksen bruised in election, as voters put Trump’s Greenland ambitions to the side. https://edition.cnn.com/2026/03/24/europe/demark-election-results-latam-intl
[6] The Viking Herald (2024). What was the Kalmar Union, and how did it affect Scandinavia? https://thevikingherald.com/article/what-was-the-kalmar-union-and-how-did-it-affect-scandinavia/456%22
[7] Denmark.dk. (n.d.). The history of Denmark. https://denmark.dk/people-and-culture/history
[8] Aarhus University (n.d.). Open online course in Danish history: 3. Economic growth and the welfare state. https://cas.au.dk/en/danish-history/modules/module-8-the-post-war-era-1945-1973/3-economic-growth-and-the-welfare-state
[9] Denmark.dk. (n.d.). The history of Denmark. https://denmark.dk/people-and-culture/history
[10] Statista (n.d.). Gross domestic product (GDP) per capita in Denmark from 1980 to 2030. https://www.statista.com/statistics/318343/gross-domestic-product-gdp-per-capita-in-denmark/
[11] Statistics Denmark (n.d.). Key figures for the national accounts (GDP). https://www.dst.dk/en/Statistik/emner/oekonomi/nationalregnskab/noegletal-for-nationalregnskabet-bnp
[12] Ibid.
[13] World’s Top Exports. (n.d.). Denmark’s top 10 exports. https://www.worldstopexports.com/denmarks-top-10-exports/
[14] Ibid.
[15] World’s Top Exports. (n.d.). Denmark’s top 10 imports. https://www.worldstopexports.com/denmarks-top-10-imports/
[16] Ibid.
[17] Schwab, K. (2019). The global competitiveness report 2019. World Economic Forum. https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf
[18] WIPO (2025). Global innovation index 2025: GII 2025 results. https://www.wipo.int/web-publications/global-innovation-index-2025/en/gii-2025-results.html
[19] Meyer, N. I. (2007). Learning from wind energy policy in the EU: Lessons from Denmark, Sweden and Spain. Eur. Env., 17, 347-362. https://doi.org/10.1002/eet.463
[20] Beyond Oil and Gas Alliance. (n.d.). Beyond Oil and Gas Alliance. https://beyondoilandgasalliance.org/
[21] Statista (n.d.). Renewable energy capacity in Denmark from 2008 to 2024. https://www.statista.com/statistics/864699/total-renewable-capacity-in-denmark/
[22] Mordor Intelligence (n.d.). Denmark wind energy market: Companies. https://www.mordorintelligence.com/industry-reports/denmark-wind-energy-market/companies
[23] Statista (2025). Sector turnover in the wind industry in Denmark from 2013 to 2023. https://www.statista.com/statistics/749052/turnover-wind-industry-denmark/
[24] European Parliamentary Research Service (2024). Roadmap to EU climate neutrality – Scrutiny of Member States: Denmark’s climate action strategy. https://www.europarl.europa.eu/RegData/etudes/BRIE/2024/767173/EPRS_BRI(2024)767173_EN.pdf
[25] State of Green (n.d.). Climate change adaptation. https://stateofgreen.com/en/focus-areas/water/climate-change-adaptation/
[26] State of Green (2023). Sound of green: The cloudburst that changed Copenhagen and urban water management. https://stateofgreen.com/en/news/the-cloudburst-that-changed-copenhagen-and-urban-water-management/
[27] State of Green (n.d.). Climate change adaptation. https://stateofgreen.com/en/focus-areas/water/climate-change-adaptation/
[28] Denmark.dk. (n.d.). Sustainability. https://denmark.dk/innovation-and-design/sustainability
[29] Klemmensen, R., Andersen, T., & Schoyen, M. A. (2024). Denmark report – Sustainable governance indicators 2024. https://www.sgi-network.org/docs/2024/country/SGI2024_Denmark.pdf
[30] Climate Change Performance Index (n.d.). Denmark. https://ccpi.org/country/dnk/
[31] Denmark.dk. (n.d.). Urban solutions. https://denmark.dk/innovation-and-design/urban-solutions
[32] International Energy Agency (2023). Denmark 2023 – Executive summary. https://www.iea.org/reports/denmark-2023/executive-summary
[33] Organisation for Economic Co-operation and Development (2024). Denmark: Reforms needed to tackle labour shortages, adapt to population ageing and achieve the green transition. https://www.oecd.org/en/about/news/press-releases/2024/01/denmark-reforms-needed-to-tackle-labour-shortages-adapt-to-population-ageing-and-achieve-the-green-transition.html
[34] Ibid.
[35] Global news (2026). Read the full transcript of Donald Trump’s speech at Davos. https://globalnews.ca/news/11623027/read-full-transcript-donald-trump-speech-davos/