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Country Profile DENMARK LG Action Country Profile Collection DENMARK This document reflects the current status on: • Government levels and departments responsible for / working with local governments (LGs). • Main national climate and energy relevant legislation and strategies that impact / has potential to impact cities and towns (also identifying what is legally not possible or difficult)., • National LG networks / associations’ support for local climate and energy action • Potential opportunities to be explored to improve the roll-out of local climate and energy action • A summary on the LG and their networks / associations’ interest and involvement in the Roadmap and advocacy processes. A. CONTEXT 1. Levels of government and their roles: Basic inter-relationship and impact (potential impact for action) Level: Character: Mandates / responsibilities / roles: National Denmark is unitary parliamentary democracy and 5,557,709 inhabitants (2010) constitutional monarchy. 14 counties ( Amtskommuner ) • The county council represents the decision • The counties competences making body and its members are elected for a are related to health care, four years mandate. In addition, it can establish secondary education, special committees and be assisted by several public transport, land and offices. It also appoints the county president. economic development. • The executive committees are elected by the council. They are responsible for the preparation and implementation county council decisions. The mayor of the county heads the council and the county administration. • The county council is also responsible for both the deputies and mayors elections 269 municipalities ( Kommuner ) • • The municipal council members are elected for The competences of the municipalities four years mandate. This deliberative body municipal organizations appoints members of the executive commissions are related to primary • 17 have signed up to the Covenant and it is responsible for set up the budget. schools, taxation, waste, of Mayors (June 2010) child care, culture, sport, 1 • The executive committees are in charge of local • Typical size: 440 km2 (2008) public services. administration. • In addition, there are also permanent committees which help the municipal council in the preparation of council decisions. The municipal council is obliged to set up a financial committee but may also set up special committees. The chief of the municipal council is the mayor who is elected for four years mandate and is responsible 1 http://www.ccre.org/bases/T_599_28_3524.pdf ; http://www.eumayors.eu/covenant_cities/towns_cities_en.htm; http://www.ccre.org/docs/nuancier_2009_en.pdf LG Action Country Profile - DENMARK 1 for both administration and municipal council. • Financing: The Denmark local government are financed by different local revenue sources: taxes (income tax, property tax and a share of the corporation tax) for 47,44%, 18,04% operating and capital revenue (from supply companies, day care institutions and sale of land), 7% reimbursement (from the state), 10,62% general subsidies (which are mainly state grants for local municipalities), 15,85% net interest, 0,80% net loans and 0,25% financial changes 2. B. NATIONAL / FEDERAL INFORMATION – Climate and Energy Legislation & approach taken by country (name & number of law / regulation together with summary of intent) 2. Main national / federal climate strategies, policy and legislation on climate change 2.1 Climate strategy and policy: - The past years, climate and energy issues have been placed very high on the agenda in Denmark. The interest in this area has been widely shared by the central Government, private businesses, NGOs and also local governments. The Danish Ministry of Climate and Energy states that the vision of the Danish Government is to make Denmark completely independent of fossil fuels. An important step in this context is to reduce the greenhouse gas emissions in Denmark. This is also a target for Denmark under the Kyoto Protocol.3 - In the Kyoto Protocol, the member states collectively committed themselves to reduce their greenhouse gas emissions by 8 per cent for the period 2008-12 compared to 1990. Denmark has also formally agreed to commit itself to two specific obligations in relation to the Kyoto Protocol: • A commitment to reduce the national greenhouse gas emissions by 8 per cent in the period 2008-12 in relation to the base year 1990 (1995 for industrial gases). • A commitment (as a part of the EU’s internal burden-sharing mechanism from 1998) to reduce the national greenhouse gas emissions by 21 per cent in the period 2008-12 in relation to the base year 1990, due to a large import of electricity. - These are the commitments upon which Denmark bases its climate and energy policies. - Denmark’s performance regarding the Kyoto commitments: The Danish effort to reduce GHGs is determined in the Danish allocation plan from 2007 also known as the NAP (National Allocation Plan). 4 The NAP presents the strategy for the initiatives to be implemented in order to satisfy the Danish reduction target at 21 per cent on average in the period 2008-12 compared to the level in 1990. The allocation plan is based on a projection of how Denmark’s greenhouse gas emissions and other influencing factors will develop during the Kyoto period. The Danish Energy Agency is responsible for the surveillance of the development of the accomplishment of the Danish Kyoto commitments. - Establishment of a Climate Commission – November 2007 5: The goal of the Danish Government is that Denmark should free itself completely from fossil fuels by 2050. In connection with the Government’s response to “A Visionary Danish Energy Policy until 2025”, the national Climate Commission with ten experts was established in November 2007 with the aim to suggest climate 22 Ministry of Local Development (MLD) and the German Technical Cooperation (GTZ), Urban Development through Local Efforts Programme Local government taxation systems. A cross-country perspective Recommendations for a future local government taxation system in Nepal, October 2009. 3 The source of the following is the website of the Danish Ministry of Climate and Energy: www.kemin.dk 4 The NAP is available on the website: www.ens.dk/en-US/ClimateAndCO2/national_allocation_plan 5 Climate Commission: www.klimakommissionen.dk/da-DK/Sider/Forside2.aspx LG Action Country Profile - DENMARK 2 policy instruments for the future energy policy and develop proposals for how the Government's long term vision of totally freeing Denmark from its dependence on fossil fuels could be achieved in practice. The Commission will present proposals for new proactive instruments for an energy and climate change policy with global and market-based perspectives that contribute to cost- effective attainment of the long-term vision. The Commission will also assess new fields of technology and the potential for the market-based development of these technologies with the aim of implementing the long-term vision, and furthermore they will assess the extent to which effective implementation requires internationally co-ordinated co-operation. - Danish strategy for adaptation to a changing climate, March 2009: The objective of the strategy is that in the future, climate change should be considered and integrated into planning and development. The strategy contains a number of guidelines to enable authorities, businesses and citizens to react promptly and autonomously to the challenges climate change will pose to the Danish society. By autonomous adaptation it is meant that authorities, businesses and citizens react to the consequences of climate change in a timely manner within the legislative, economic and technological framework. The strategy focuses mainly on the general activities to be undertaken to ensure the process. Initiatives shall mainly be taken within the existing framework and does not entail any financial support for climate initiatives 6. The webportal is anchored in a cross-cutting Co-ordination Forum for Climate Change Adaptation, including representatives from nine ministries, Local Government Denmark and the Association of Danish Regions. It was developed by the Information Centre for Climate Change Adaptation under the Danish Ministry of Climate and Energy in collaboration with an array of other institutions. Work in the individual institutions is co-ordinated by a portal working group set up for the purpose. 2.3 Energy relevant policy and strategy: - Energispareaftale November 2009 – Energy-Savings Agreement 2009 – between the Government and local authorities: From 2010, energy companies are obliged to provide an increased energy-savings yearly. The obligation is equivalent to the annual energy consumption of approx. 67,000 houses or 0.8 per cent per year. This is the result of a savings’ agreement between the Climate and Energy Ministry and the network and distribution companies within electricity, natural gas, district heating and oil. The companies have already committed themselves to deliver energy-savings, but with this agreement the obligations have almost doubled according to the Government. - Energipolitiske redegørelser, energy policy reports to the Danish Parliament from 2003-2010: The energy policy reports focus on the future problems of supply and climate, which is the starting point of the basis for the Government’s future plan for an energy supply independent of fossil fuels. Among the most important milestones in the political process in Denmark regarding climate and energy issues, we
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