Danish cutoff date for oil an gas extraction
A broad majority in the Danish Parliament has reached a deal on the future of fossil extraction in the North Sea, leading to the cancellation of the ongoing 8th licensing round and all future rounds to extract oil and gas.
The deal also establishes a final phase-out date of fossil extraction by 2050 and lays out plans for a just transition of impacted workers.
Denmark is currently the largest oil producer in the EU, and will now become the biggest producer worldwide to establish a final phase-out date so far. Other countries to have done so all produce significantly less oil and gas than Denmark.
The agreement sets the direction towards a climate neutral Denmark and a complete phase-out of fossil fuel production by 2050, while simultaneously nailing down remaining rules to ensure stability and safeguard employment in the impacted regions.
“When the calendar reads 2050, the oil and gas valves will be turned off for good, in line with our commitment to climate neutrality stipulated by the Danish Climate Act. We will cancel all future licensing rounds marking an end to fossil exploration by state invitation in Denmark, effective immediately”, says the Danish Minister for Climate, Energy and Utilities, Dan Jørgensen.
The agreement also nails down remaining rules to ensure stability going forward.
It is the intention to use the new green course in the North Sea as a springboard for an active and targeted role in the global debate on the role and responsibility of oil producing countries in the fight against climate change.
“As a small country our only chance to make a real dent in the global emissions curve is to lead the way by example. We intend to show what an ambitious yet balanced phase-out of fossil fuel production might look like, taking into account both the urgency of climate change and the very real concerns of workers employed in the fossil sector. Just transition has to be part and parcel of any socially balanced approach. Hopefully we can inspire others to follow suit”, says the Danish Minister for Climate, Energy and Utilities, Dan Jørgensen.
Source: Ministry for Climate, Energy and Utilities