Denmark announced it will end all oil and gas exploration by 2050

Denmark has just taken an important step in leading the world in the fight against climate change. The country has announced that it will phase out all North Sea oil and gas exploration contracts by 2050. It is the first major oil-producing country to take such a big step forward.

Following a December 3 vote, the Danish parliament almost completely banned companies from receiving new licenses to hunt and extract oil. The deal will also cancel an eighth licensing round that was scheduled to take place. Licenses issued before the vote will be honored until 2050.

“We are the largest oil producer in the European Union and this decision will therefore have an echo around the world,” Danish Climate Minister Dan Jorgensen said on Thursday.

The decision to end oil and gas contracts by 2050 will not be cheap as it will cost Denmark $ 2.1 billion, but the country seems ready to foot the bill. “It’s a tough decision, it’s a costly decision, but it’s the right decision,” Jorgensen told The Washington Post.

Denmark has been extracting oil and gas from the North Sea since 1972. Tax revenues from oil and gas production have greatly benefited its economy, helping to build a Danish welfare state that takes care of its citizens all the while. throughout their life.

But ending oil and gas extraction and exploration, experts say, is the only way for Denmark to meet the European Union’s climate commitment. In October, the European Union voted to reduce greenhouse gas emissions by 60% from 1990s levels by 2030.

The decision, which was adopted by an overwhelming majority, reinforced the Union’s commitment to the 2016 Paris Agreement, signaling Europe’s serious commitment to end the emergency. climate.

Denmark’s plans bring the country into line with regional goals.

“He is taking a step that is likely to ensure that Denmark can meet this target within the EU of reducing emissions to the point where it can achieve carbon neutrality by 2050”, Wil Burns, professor and co-director of the ‘Institute for Carbon Removal Law & Policy at American University, told me. “And that’s the only way they could do that.”

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The vote also came due to increased pressure at home. Copenhagen, the Danish capital, announced at the end of 2019 its intention to become the world’s first carbon neutral capital, achieving net zero carbon emissions by 2025.

And as Reuters reported in June, the Danish Climate Change Council, an independent body that advises the Danish government, has called for an end to oil and gas activities in order to save Denmark’s credibility as a leader in the fight against climate change.

“A Danish stop for further exploration of the North Sea could send a strong signal in international climate policy and could even encourage other countries to follow suit,” the council said at the time.

The international environmental activist organization Greenpeace expressed its support for the decision on Twitter, announcing the decision as a “historic decision”.

End of oil production by 2050 has been hailed – and criticized

The move was also welcomed by EU government officials, including Finnish Environment and Climate Minister Krista Mikkonen, who applauded the decision via Twitter saying the world needs more leaders on climate change.

Some other environmental groups were also happy. “This is a huge victory for the climate movement,” Helene Hagel of Greenpeace Denmark said in a statement. She added that Denmark has “a moral obligation to end the search for new oil to send a clear signal that the world can and must act to respect the Paris Agreement and alleviate the climate crisis.”

Swedish climate activist Greta Thunberg was far less impressed, however, tweeting that the move means Denmark will continue to extract oil and gas for another 30 years.

Denmark’s decision shows that Paris and regional and national emission reduction commitments are starting to have a real impact – and that’s good.

As the European Union’s largest oil producer, Denmark’s decision is significant, but other oil-producing countries must make a similar commitment if there is any hope of achieving the Agreement’s goal. of Paris to limit warming to 2 degrees Celsius.

“You’re going to need a lot of other countries, especially the big oil and gas producers, to step in,” Burns told me. “Norway and the UK both feel compelled to remain leaders in pursuing the climate agenda.”

While the UK and Norway are both large oil-producing countries and located outside the EU, the desire to take the lead on climate change could push nations to make stronger commitments.

On December 3, the UK announced ambitious plans to cut emissions by 68% from 1990 levels by 2030. A report also calls on UK oil and gas companies to phase out production in the North Sea and switch to renewable energy sources. Peer pressure could also help lead the way.

Neighboring Norway, Burns noted, is a much larger producer of fossil fuels, so a commitment to end oil and gas extraction would be a much more dramatic step for that country.

“If the United States, this year or next, starts to come back as a positive force on climate, that, with measures like this from Denmark, could put pressure on other countries to they do, ”Burns said.