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News > Global environmental current affairs > Denmark, the EU's largest oil producer, announced it would halt North Sea oil and gas production and phase out fossil fuels by 2050.

Denmark, the EU's largest oil producer, announced it would halt North Sea oil and gas production and phase out fossil fuels by 2050.

2021-06-21

Climate Home reports that the Danish Parliament signed a groundbreaking agreement on the evening of the 3rd, halting the issuance of new oil and gas exploration licenses and phasing out fossil fuel production by 2050. Middelgrunden offshore wind farm, Denmark. Photo credit: European Wind Energy Association (CC BY-NC-ND 2.0). Denmark makes the world's most proactive climate commitment, becoming a green pioneer in gas production. Denmark has been extracting hydrocarbons in the North Sea for nearly 50 years and is the largest oil producer among countries that have pledged to phase out fossil fuel production. The minority Social Democratic Party government reached an agreement with five other parties to cancel the latest round of licenses and all future tenders. The agreement also includes supporting the development of other economies and job creation in the Esbjerg region, the largest offshore oil-producing area. Climate and Energy Supply Minister Dan Jørgensen said he hopes this decision will inspire other countries to follow suit. He said, "We are now putting an end to the fossil fuel era, and our activities in the North Sea will be aligned with the Climate Act's goal of achieving carbon neutrality by 2050." Greenpeace praised Denmark as a climate role model. “This is a watershed moment,” said Helene Hagel, head of climate and environmental policy at Greenpeace Denmark. “Denmark can undoubtedly be called a green pioneer and inspire other countries to end their dependence on fossil fuels. This is a huge victory for the climate movement and for everyone who has worked on it for years.” Denmark ranked only 39th globally in oil production in 2019, but due to Britain’s exit from the EU, it is now the EU’s largest oil producer, with 20 oil and gas fields in the North Sea. The current Danish government pledged to increase climate activism upon taking office, making green transition a core policy objective. It has committed to reducing emissions by 70% from 1990 levels by 2030 and achieving carbon neutrality by 2050, among the most ambitious climate goals in the world. Denmark is committed to North Sea energy transition, proposing two offshore wind power “energy islands.” In recent years, Denmark has been committed to large-scale offshore wind power projects in the North Sea. Earlier this year, it also proposed two “energy islands” to build a total of 4 GW of offshore wind power to help achieve its climate goals. Former state-owned oil company Dong has transformed into clean energy specialist Ørsted, leading offshore wind power development and developing large-scale green hydrogen facilities to provide clean fuel for ships, trucks, buses, and airplanes. The Danish political agreement also includes investment in research on how to utilize abandoned oil and gas fields for carbon dioxide storage. Jørgensen said the agreement will provide a "stable framework for oil extraction" for companies and investors in the North Sea over the next 30 years. He pledged to help oil industry workers upgrade their skills and find new job opportunities. The agreement endorses the recommendations of the Danish government's independent climate advisory committee, but still needs to be translated into law for formal approval by Danish legislators.

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