Eco-innovation in

EIO Country Profile 2016-2017

Eco-Innovation Observatory

The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation and circular economy information, gathered from across the and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development. The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as: “Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”. To find out more, visit www.eco-innovation.eu and ec.europa.eu/environment/ecoap

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.

Eco-Innovation Observatory

Country Profile 2016-2017: Denmark

Author: Henry Varga

Coordinator of the work package: Technopolis Group

Acknowledgments The document has been prepared with the kind support of: Mr. Niels Henrik Mortensen (Danish Ministry of the Environment - Danish EPA), Ms. Signe Kromann-Rasmussen (Danish Ministry of the Environment - Danish EPA), Mrs. Hanne Juel (/ Midtjylland), Mr. Morten Christensen (Danish Regions), Mr. Christoffer Trojaborg Julian (State of Green) and Mr. Steffen Max Høgh (3R Kontor ApS).

A note to Readers Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Union. A number of companies are presented as illustrative examples of eco-innovation in this report. The EIO does not endorse these companies (Nordregio, n.d.a) The report is based on an updated methodology for calculating the Eco-Innovation Index, which has also been applied retroactively to all previous years, hence the outcome in the Eco-Innovation Scoreboard (Eco-IS) for 2017 presented in this report can be compared with the analysis in the previous reports to a limited extent.

Comments and suggestions on this document can be sent to Asel Doranova [email protected]

This brief is available for download from https://ec.europa.eu/environment/ecoap/country_profiles_en

Table of contents

Summary…… ...... 1 Introduction ...... 2 1 | Eco-innovation performance ...... 3 2 | Selected circular economy and eco-innovation areas and new trends ...... 10 3 | Policy landscape: towards circular economy in Denmark ...... 21 4 | Barriers and drivers to circular economy and eco-innovation in Denmark ...... 14 ANNEX: Policy measures addressing circular economy and eco-innovations in Denmark ………………………………………………………………………………………………………………….42

Summary

Denmark ranks fifth (5th) in the overall 2017 Eco-IS, behind , , and on first place. This is a slightly lower ranking compared to the fourth position in 2016 and third position in 2015. Overall, since the first Eco-innovation scoreboard in 2010, Denmark has never been ranked below fifth place. For the period 2014-2017, Denmark has been in the same cluster of five top scoring countries mentioned above. In terms of eco-innovation output, compared to 2015, Denmark slides down the ranking from third place to fourth (4th) in the scoreboard, while it retains a second (2nd) spot in terms of eco-innovation input, which is also Denmark’s best performing indices. Denmark improves in terms of eco-innovation activities, where it moves up from twenty-first (21st) to eighteenth (18th). As in the previous report, the country does seem not manage to translate the high eco-innovation output into a higher socio- economic output, where it drops from fifteens place (15) to twenty-fourth (24th). Denmark has been promoting eco-innovation since 2006 and has decided to be a low-emission society in 2050, independent of fossil fuels, backed by an ambitious policy framework through a multiple-solutions approach. 2017 saw electricity production with the lowest CO2 emissions in history, reaching for first time below 200 grams CO2 per day and kilowatt hour (Danish Ministry of Energy, Utilities and Climate, 2018d). 2017 was also a record year for Danish wind power, with 43.4% of Denmark's electricity consumption supplied by wind power (Danish Ministry of Energy, Utilities and Climate, 2018a). With the 2007 Danish Local Government Reform (creating five completely new regions), green growth initiatives got off and the regions are today heavily involved in the circular economy transition and there is an increasing positive attitude towards circular economy amongst the population and businesses. Denmark’s pledge to circular economy goes beyond its borders and sees this as an economic opportunity for the country through export of Danish environmental technology and services and has capitalised on its reputation as a frontrunner in green solutions, signing numerous partnership agreements with governments at regional and national level around the world (see StateofGreen.com). Furthermore, Denmark is a long-standing member of the Circular Economy 100 network (CE100), a global platform run by the Ellen MacArthur Foundation1 and in 2015 Denmark was awarded the World Economic Forum’s Young Global Leaders award ‘The Circulars’2 for being a global front-runner in exploiting the potential of circular economy. The current Danish Government is committed to support an ambitious green change in a sustainable and efficient way, where consideration for Danish jobs and competitiveness goes hand in hand with environmental and climate considerations. (Regeringen, 2016). The government sees itself at the forefront of the green change and wants that the life-cycle perspective is more part of the decision-making basis for public investment and procurement. In line with these policies, the Danish government established the Advisory Board for Circular Economy in 2016, consisting of 12 business executives (including representatives from SMEs). This more market-oriented policy may have impacted the indicator governments environmental and energy R&D appropriations and outlays (Share of GDP), where Denmark scores below EU average for the first time.

1 www.ellenmacarthurfoundation.org/ce100 2 https://thecirculars.org

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Introduction

Denmark is a modern economy with high dependence on foreign trade. With high level of material flows, the of Denmark relies almost entirely on human resources, where the service sector makes up the vast amount of the employment and economy. GHG emissions are low and are continuing to decline and there is evidence that a decoupling between growth in GDP and growth in greenhouse gas emissions has taken place. The main factor is that the share of renewable energy in final (gross) energy consumption is increasing and has surpassed the national target of 30% for 2020. Transport sector negatively affects the air and is a major contributor of pollutants. Only a quarter of the Danish rail network is electrified and electrification is a major priority for the rail industry in Denmark. Denmark has pledged to close all its coal fired plants by 2030 and is making good progress towards a low-carbon society independent of fossil fuels by (IEA, 2017). Taking a more market-oriented approach, the current Danish Government places strong emphasis on cost-effectiveness of measure to manage environmental sustainability which permeates almost all new policy documents since mid-2015. While there is no direct national funding to circular economy (CE), the Government established the Advisory Board for Circular Economy and the Energy Commission and it’s still needs to be seen how much of their recommendations will be translated into concrete national policy initiatives in the near future, although there are positive signs like the recent strategy on sharing economy. Local and regional governments are continuing their work and are developing CE strategies as well as intensifying public-public and public-private cooperation. Cooperation across sectors is in general a strong factor in Denmark and the attitude towards CE is very positive and interest in applying CE principles among Danish companies is high. Denmark also cooperates through the Nordic Council of Ministers on Nordic Bio economy, which is about green transition. Danish economy is performing well and the outlooks is promising, with real GDP growth driven by net exports, private consumption and investment. Despite stiff competition in Danish flagship sector of manufacturing, Danish companies are doing very well and interest for Danish environmental technology, services and cooperation is strong. Employment is robust, particularly in services sectors, although there are some clouds in the horizon in terms of capacity constraints and boosting investment, productivity growth and labour supply remain key challenges. The downside of the economic growth is that it puts higher pressure on resources. Denmark has some of the highest governmental spending on education in Europe, it does not translate into high productivity and the green business sector is lacking the right skills and capabilities. This could be explained by the low levels of unemployment Denmark in recent years which leads to higher demand for skilled labour in general. The Danish Government has launched a number of initiatives in 2016 to boost labour supply, improve the business environment and increase productivity and according to the Global Competitiveness Indicator Denmark is among the best performers in the EU in terms of ease of doing business. Furthermore, initiates have been taken to better coordinate higher education and research with industry and business for two reasons: 1) to better match choice of education with the needs of the market; and 2) increase commercialisation of research and innovation.

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1 | Eco-innovation performance

The analysis in this section is based on the EU 28 Eco-innovation Index (EcoI Index) for the year 2017. The Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. EcoI Index is a composite index that is based on 16 indicators which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes With an overall score of 120, the 2017 Danish eco-innovation performance scores a fifth place, down from a third place compared to 2015 (index 131) and a fourth place in 2016 (index 129). Ahead of Denmark is Finland (index 139), Luxembourg (index 139), Germany (index 141) and on first place Sweden (index 143), in the list of EU28 member states (EU average at 100), as illustrated below in Figure 2.1. Denmark has never been ranked below fifth place in the Eco-innovation scoreboard 2010-2017. Figure 2.1 EU27 Eco-innovation Index 2017, composite index

Source: EIO, 2018 Figure 2.2 illustrates the 5 main components behind the Eco-Innovation Scoreboard Index; Eco- Innovation Inputs, Eco-Innovation Activities, Eco-Innovation Outputs, Resource efficiency Outcomes and Socio-Economic Outcomes. Most notably is that for every year 2010-2017 Denmark has constantly been among the top three countries in eco-innovation inputs (scoring first place in 2016) and between third and fifth place

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in eco-innovation outputs. This comes as no surprise considering the broad political consensus across parties to move Denmark towards a green economy to become independent of fossil fuels by 2050, regions and local authorities are progressively incorporating circular economy into their strategies and there is an increasing willingness and interest amongst Danish enterprises to participation and contribute to a paradigm shift from a linear economy to a circular economy. On the other hand, it is interesting to observe that Denmark does not manage to translate the high level of eco-innovation inputs and eco-innovation output into higher socio-economic outcomes. In the latter case there is been a downward trend since 2010. Table below shows the historical ranking (according to the new methodology) for the five indicators 2010-2017.

2010 2011 2012 2013 2014 2015 2016 2017

Eco-innovation inputs 3 2 2 3 2 2 1 2

Eco-innovation activities 5 11 12 3 21 21 19 18

Eco-innovation outputs 3 5 4 4 5 3 4 4

Resource efficiency outcomes 11 11 6 7 6 7 5 8

Socio-economic outcomes 3 13 13 10 20 15 23 24

Figure 2.2 Components of the Eco-innovation index for Denmark 2017

Source: EIO, 2018

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Eco innovation inputs – best performing indicator The eco-innovation inputs are based on Governments environmental and energy R&D appropriations and outlays, total R&D personnel and researchers, and total value of green early stage investments. This is by far Denmark best performing indicator, ranking 2nd in 2017 (index 178), below Finland (index 200) and never below a 3rd position since 2010. Noticeable is that the Finland ranks 1st in seven out of eight years between 2010-2017, Denmark taking first position in 2016 (index 189). Furthermore, four countries are recurring in the top five since 2014: Finland, Denmark, Germany, and Sweden. Both in Total R&D personnel and researchers and Total value of green early stage investments Denmark ranks first place every year since 2014. Total R&D personnel and researchers has never been below 4th position (2010), while for green early stage investments Denmark shared the top spot for 2014 (Ireland, Luxembourg), 2015 (Finland, Ireland, ) and 2016 (Germany, Ireland). The governments environmental and energy R&D appropriations and outlays (per cent of GDP), in 2017 (2016 data) was 0.033% (index 0.51) down from 2015 (2014 data) figures of 0.050% (index 0.53). This ranks Denmark on 8th below EU average of 0.037% (index 0.57) and behind 0.040 % (index 0.62), 0.042% (index 0.66) and Sweden 0.05% (index 0.74). Finland, Germany and sharing first spot with 0.064% (index 1.00). In comparison, total Government Budget Appropriations and Outlays for R&D (per cent of GDP) was 1.01% in 2016 and 1.09% in 2014 (Statistics Denmark, n.d.) respectively. Denmark ranks 1st in R&D personnel and researchers share of total employment with 2.19% (index 1.00) in 2017, ahead of Luxembourg with 2.01% (index 0.90), Finland 1.99% (index 0.89) and Sweden with 1.91% (index 0.85). This is well above EU average of 1.32% and index of 0.52. In comparison to 2015 figures, Denmark had 2.16% (index 1.00) with and EU average of 1.25% (index 0.50). Denmark takes the top position for the amount of total green early stage investments in 2017 (period 2014-2017) with an of USD 121 (index 1.00) per capita, ahead of Finland (USD 113, Index 0.93), Germany (USD 97, Index 0.81) and Sweden (USD 89, Index 74). In comparison Denmark invested USD 159 per capita in 2015 (2012-2015 figures). The EU average for 2017 is USD 38 per capita (index 0.31) and USD 71 (index 0.45) respectively. According to a benchmark analysis done by the state investment fund Danish Growth Fund (Vækstfonden), where the Danish market is compared with 15 other European countries, Denmark is ahead in terms of investment activity as well as at the forefront in terms of early stage investments (Vækstfonden, 2017). However, when it comes to the venture capital, venture companies' ability to attract capital and direct public venture investments, Denmark ranks 9th, 8th and 12th respectively. Notable is that Denmark’s public direct venture investments account only for approximately 5% of total investments. By comparison, in Portugal more than 70% comes from total public investment. In 2016 the Danish Growth Fund and the European Investment Fund (EIF) signed an agreement to launch the Danish compartment of European Angels Fund (EAF Denmark), which will support business angels’ SME financing activities through co-investments (European Investment Fund, 2016). Eco innovation activities – fourth performing indicators Eco innovation activities are based on Firms having implemented innovation activities aiming at a reduction of material input per unit output, Enterprises that introduced an innovation with environmental benefits obtained by the end user and ISO 14001 registered organisations. In 2017 Eco-IS, Denmark ranks 18th (index 58) up from 21st place in 2015. Top three performing countries are Sweden (index 148), Germany (index 151) and Finland (index 155). Note that for two of the

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indicators3 the data dates back to 2008 for all the 2010-2015 Eco-IS. In addition, six countries had no data available for this period, including Denmark. For the 2016 and 2017 Eco-IS there is new data (from 2014), including for Denmark, still there is no data available for six countries: Belgium, , Ireland, , and the UK. This has two consequences: 1) It is not possible to read any trends how Denmark is performing; and 2) missing country data does not mean that these activities do not take place in these countries, hence if data would have been available this could affect the EU average and ranking of Denmark and the overall picture. For Firms having implemented innovation activities aiming at a reduction of energy input per unit output Denmark scores a 15th place with an index of 0.26, below EU average of 0.53. Top three are Portugal (index 0.79), (0.81) and Germany (index 1.00). For Enterprises that introduced an innovation with environmental benefits obtained by the end user, Denmark ranks 13th (index 0.28), below EU average (index 0.50). Top three position are taken by Germany (index 0.95), Austria (index 0.97) and Finland (1.00). In terms of ISO 14001 registered organisations Denmark ranks 17th with an index of 0.24, below EU average 0.30. Top three countries in 2017 are (0.76), (0.79) and (1.00, in 2016 Malta scored only 0.05). The low score for Denmark can be related to that many companies in Denmark apply a strong environmental regulation and have preferred to implement the European Eco Management and Audit Scheme, which set stricter environmental targets and standards for the company performance than ISO14001. For instance, while Denmark has 28 organisations and 203 sites under EMAS, Sweden (which has about 4 million larger population) has only 17 organisations and 17 sites (European Commission, 2017). Danish companies have also been successful in Environmental Technology Verification (ETV), a new tool to help innovative environmental technologies reach the market. Of the 28 verified technologies, eight are from Danish companies or 28.6% of all verified technologies (European Commission, 2018b). Especially in the category ‘Water Treatment & Monitoring’, half of the eight technologies are from Danish companies while in the category ‘Materials, Waste & Resources’ four out of 14 technologies are from Danish companies (there are no Danish companies in the third category – ‘Energy Technologies’). There has been a negative trend in EMAS-registered organisations, down from 120 in 2005 to 46 in 2015 (, 2018d) while EMAS-registered sites have been fluctuating between 229 and 455 (Eurostat, 2018c). The trend in registration could be explained by companies being more attracted to ISO 14001, because 1) it is more internationally known and 2) because EMAS are seen as to bureaucratic (Mortensen, 2018). One reason why Denmark has a lower frequency of ISO14001 certifications could be the high share of products linked to agricultural production, where producers have been more resistant to obtain environmental standards. Although this could change as Denmark has the biggest, proportionally, organic market in in the world, with organic food making up 9.7% of the total food market in 2016 (Research Institute of Organic Agriculture - FiBL, 2018) and there is an increasing in demand, both at home4 and foreign markets, for organic food products. Denmark was the first country in the world that implemented a state control for organic food in 1987 and has also developed the Organic Cuisine Label5, a state guaranteed label that is free and through

3 Firms having implemented innovation activities aiming at a reduction of material input per unit output, and Firms having implemented innovation activities aiming at a reduction of energy input per unit output. 4 http://organicdenmark.com 5 http://en.restaurant.oekologisk-spisemaerke.dk

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a different range of indicators shows the total percentage of organic raw ingredients and beverages used in preparing the entire menu in a kitchen. Furthermore, Denmark is part of the Nordic Swan Ecolabel (established in 1989), which is one of the founders (1994) of the international network for ISO 14024 Type 1 ecolabel (Nordic Ecolabelling, n.d.). The Nordic Swan Ecolabel has 60 product groups and sets strict environmental requirements in all relevant phases of a product's life cycle. Eco innovation outputs – second best performing indicator Based on Eco-innovation related patents, Eco-innovation related academic publications and Eco- innovation related media coverage, Eco innovation outputs is Denmark’s second best performing index on 4th position (index 154), right behind Sweden (index 182), Finland (index 202) and Luxembourg (index 220). The result is on position down from 3rd place in 2015 but the same in 2016. In terms of Eco-innovation related patents, Denmark ranked 4th with 28.55 eco-patents per million inhabitants (EU average of 15.34), behind Finland (34.38), Sweden and Germany both on (35.46). This is one position down from 3rd place with 36.37 (EU average 17.52) in the 2015 Eco- IS, but two positions with 34.18 (EU average 17.44) in the 2016 Eco-IS. Finland, Sweden and German being the same main contenders at the top for those years. The trend looks like other countries are ‘catching up’ with Denmark and seems logical as eco-innovation, and especially circular economy practises and policies, are being developed and applied by more and more governments, organisations and companies. Still, Denmark has twice as many eco-patents than the average EU, which is also reflected in figure 2.2 with a high eco-innovation output. In comparison with the lower environmental outcomes, one could question if the higher number of eco-patents truly is contributing to a decrease in the overall flow of materials and energy. As the Green for Denmark 2015-2016 described, the results are mixed with setbacks in some areas and progress in others. For instance, it states that decoupling of economic growth and greenhouses gases which has taken place, while on the on the other hand there is no indication of decoupling between industrial output and waste generation (Statistics Denmark, 2018). When it comes to Eco-innovation related publications (per million inhabitants) Denmark ranks 7th (index 0.77, EU average 0.32) down from 5th place in 2015 (6th place in 2016 Eco-IS). At the three top spots we find (index 0.93), Sweden (index 0.97) and Finland (index 1.00). With a 21st position and an index of 0.21 (EU average 0.35), Denmark scores surprisingly low for Eco- innovation related media coverage (per number of electronic media), as Danish media coverage of environmental issues, in general, is high. Although this is something that affects four out five top scoring countries for the composite index, except for Luxembourg, which shares the three top spots with and Spain. Resource efficiency outcomes – third best performing indicator The indicator is based on Material productivity (GDP/Domestic Material Consumption), Water productivity (GDP/total fresh water abstraction), Energy productivity (GDP/gross inland energy consumption and GHG emissions intensity (CO2e/GDP). Denmark ranks 8th in 2017, down from 7th in 2015 (5th in 2016 Eco-IS). Overall, Denmark has been ranked between 5th and 8th in 2012 to 2017 compared to the 11th position in 2010 and 2011, which would indicate that Denmark has made some progress. Denmark could have ranked much better if it would not have been for the poorer performance in material productivity (GDP/Domestic Material Consumption) which was the only indicator below EU average on 11th position with an index of index 0.33 (EU average 0.45), up from a 15th position in 2015. This was actually the best result in term of ranking for the

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2010-2017 Eco-IS period. The top three scoring countries are UK (index 0.81), Italy (0.93) and Spain (1.00). Despite improving greenhouse gas emissions per capita (until 2015) and higher share of renewable energy in gross final energy consumption, Denmark is struggling with, domestic material consumption (tonnes per capita) and waste production per capita (Eurostat, 2018e). 30% percent of total waste generation is generated by households (Statistics Denmark, 2018). Some of it can be related to economic growth that has put higher pressure on the environment and natural resources, and, the main factor, increase in building and construction activities (Statistics Denmark, 2018). The latter is related to the many on-going construction projects that were launched during the economic crisis. In terms of Water productivity (GDP/total fresh water abstraction) Denmark ranks 8th (index 0.46, EU average 0.17). The top three countries are Malta (index 0.57) on third, while Sweden (index 1.00) and Luxembourg (index 1.00) share the first position. In 2016 Denmark ranked first, while It ranked 9th in 2015. However, it should be noted that water productivity in the Eco-IS for the years 2010-2015 are all based on the same data set period, 1996-2005. The overall trend for the last 40 years has been that the water consumption in Denmark has been reduced by more than 30% (DANVA, 2017). The more current and future pressing problem in Denmark is the rising groundwater levels (DMI, 2018). In 2017 Denmark ranks 3rd (index 0.84, EU average 0.51) in Energy productivity (GDP/gross inland energy consumption), third year in a row, just behind Malta and Ireland which share the first position. In general Denmark score well over 2010-2017, with a best of second position in 2014 and a sixth position in 2011 and 2012. Although the overall picture is that economic growth and the increase in private consumption were coupled by increasing gross energy consumption in 2015 and 2016. The increase in energy consumption even exceeded economic growth in 2016, which means that energy consumption per unit of GDP also increased. One contributing factor, as mentioned above, was that 2016 was a cold year. (Statistics Denmark, 2018) The overall trend for GHG emissions intensity (CO2e/GDP) has been positive for the period 2010- 2017, with a 4th position in 2016 (index 0.70) and 2017 (index 0.73, EU average 0.56), up from 8th position in 2015 (index 0.68). Top three positions are occupied by France (index (0.77), Malta (index 0.80) and Sweden (1.00). Sweden has been ranked first for all Eco-IS with regard to GHG emissions intensity. Unfortunately, increase in greenhouse gas emissions in 2016 broke the long- term downward, partly due to the fact that 2016 was a cold year with less wind than in 2015, which increased the consumption of coal for heating, and that Danish wind turbines produced less power than in the year before. On the other hand, Danish consumption of renewable energy increased 11% in 2017, while at the same time coal consumption fell sharply (Danish Ministry of Energy, Utilities and Climate, 2018c). Denmark is one of the countries with very high material flows and the material productivity would be rated lower, if it was not due to a high production of renewable energy and efficient recycling systems, which have a positive influence on the above-mentioned indicators. The fact that over 60% of the total land area in Denmark is under heavy agricultural production, and 16% is designated forestry, pushes the score of eco-innovation in a negative direction (Statistics Denmark, n.d.-a). The agricultural activities are extremely resource intensive, in particular in terms of energy, which has a negative impact on the environmental outcome. Another important sector is transportation of cargo, where maritime transportation also contributes a large part of GHG emissions. Even if shipping is not included in the Paris Agreement (hence not part of the

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Danish CO2 obligations), Danish shipping industry is at the forefront of clean shipping initiatives (Danish Shipping, 2016). Overall, Denmark has made progress, while the economic activity in Denmark increased by more than 40% from 1990 to 2007, CO2 emissions decreased by nearly 14% - corrected for fluctuations in weather and electricity exchange with other countries (Danish Ministry of Energy, Utilities and Climate, n.d.). Socio-economic outcomes – worst performing indicator This indicator aggregates statistics on employment in eco-innovation industries, the size of eco- innovation markets, and exports of eco-innovation products are used to measure socio-economic outcomes. The new data ranks Denmark down on 24th place (index 70, EU average 100), pulled down by very low results in employment and turnover in eco-industries. In the best performing indicator Exports of products from eco-industries (% of total exports), Denmark shares 3rd position (index 0.68, EU average 0.60), with UK, behind Luxembourg (index 0.72) and Germany (index 1.00). With 1.15% Employment in eco-industries (of total employment across all companies), Denmark ranks 24th (index 0.15, EU average 0.37), down from 22nd in 2015, but up from 25th in 2016. Top three countries are (index 0.60), Latvia (0.62) and (1.00). According to Statistics Denmark (2017), 71.356 people were employed in environmental goods and services in 2016. If dived by the average number of people employed (2.748.000) in 2016 (Eurostat, 2018a), the figures increases to 2.6%. Interesting observation is that the nine top countries are from Central- and Eastern Europe (CEE), which could indicate an allocation of products and services to these countries out of cost reasons. The only high-cost living country above EU average is Finland on 11th position. The same situation concerns also Turnover in eco- industries (% of total revenue across all companies), where Denmark ranks 26th (index 0.16, EU average 0.44), down from 23rd place in 2015. Romania (index 0.77), (index 0.80) and Slovakia (index 1.00) take the top three positions, and again at top ten all positions are occupied by CEE countries. The discrepancies in figures is related to that the NAICS codes selected for eco- industry and circular economy does exclude a number of industries. For instance, the indicator does not include renewable energy companies, a field that Denmark is particularly strong in, especially in the field of manufacturing, selling, installation and service of wind turbines6. In 2016 the Danish wind turbine industry had a revenue of DKK 118.1 billion (approx. EUR 15.8 bn) and 2.2 % of employees in the Danish private sector worked in the wind turbine industry (Vindmølleindustrien, 2017). Statistics Denmark defines green economy differently, which in turn does not include NAICS codes that are included in the definition of eco-industries: “Environmental goods and services are characterised as goods and services that directly protect [emphasis added] the environment (for example wastewater treatment and remediation of contaminated soil) or their use results in reduced environmental pressure (for example wind turbines)” (Statistics Denmark, 2018, p. 34). In other words, economic activities that indirectly contribute to the environment are not accounted for. In accordance to the definition of ‘Environmental goods and services’ the turnover amounted to DKK 214 billion in 2016 of which 78% was generated in manufacturing and utility services, 20% from other industries, including building and construction and business services and 2% from organic products from agriculture7 (Statistics Denmark, 2018).

6 NAICS: 221115 - Wind electric power generation; and NAICS 33361 - Wind turbines (i.e., windmills), manufacturing, are not included in the ORBIS list of eco-industries. 7 The latter two are not included at all in the definition of eco-industries.

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2 | Selected circular economy and eco- innovation areas and new trends

A positive attitude towards circular economy is spreading more and more in the Danish society. This is manifested, for instance, through the increasing demand for organic food amongst the Danish population, which, together with increased global market for organic food, also has led to an increase in the number of organic farms (Det økologiske erhvervsteam, 2017). Another example is the Advisory Board for Circular Economy Danish Government established in 2016 counting 12 CEO's and firm leaders from big as well as small Danish companies. In June 2017 the Board delivered a report with 27 recommendations for specific efforts Denmark should focus on in order to promote the transformation into a circular economy, which were formulated around four general themes: 1) The circular value chain; 2) Design and production; 3) Consumption; and 4) Recycling (Advisory Board for Circular Economy, 2017). As circular economy touches many different aspects in a value-chain, so is also the need for a wide variety of eco-innovation and circular economy solutions. Hence, there is not a specific trend, rather there are efforts taking place where Denmark’s sees particular societal challenges that need to be addressed coupled with business potential. One area that stands out, is the issue how to implement circular economy in practise. There is a demand for finding tools and methodology to “crack the code of creating value for all stakeholders along a material stream” (Juel, 2018), hence there is a ‘management gap’ (Trojaborg Julian, 2018). With other words it is important to find the drivers that would attract more actors needed to get the necessary critical mass to transition into circular economy. Some work has started and there are an increasing number of supportive tools and organisation addressing this issue (see examples below in chapter 4). New since the last eco-innovation report is the FORSK2025 (RESEARCH2025) catalogue that identifies promising Danish research areas in relation to growth, employment and welfare, based on a number of significant challenges facing society and special Danish conditions. In total 19 research topics are identified within four main areas: I) New technological opportunities; II) Green growth; III) Better health; and IV) People and society. Green growth has seven of the research topics: 1) Efficient, intelligent and integrated energy system; 2) Bioresources - Foods, Ingredients and Other Biological Products; 3) Future Intelligent and Green Transport; 4) Future Buildings, Physical Infrastructure and Cities; 5) Circular Economics and Environmental Technology; 6) Water Resources and Technologies; and 7) Climate Change and Adaptation. (Ministry of Higher Education and Science, 2017) The Danish Eco-Innovation Program (MUDP) lists a number of general focus areas: Water; climate change adaptation; circular economy and recycling of waste; cleaner air; less noise; fewer hazardous chemicals; the industry's environmental performance; and ecological and sustainable construction (Danish EPA, n.d.). According to the latest action plan for 2018, MUDP should promote sustainability and resource efficiency, promote the development and demonstration of sustainable technological solutions that ensure efficient resource utilization and address nature and environmental challenges in Denmark and globally. The Board states that it looks for new innovative solutions in: • Circular economy, including solutions that promote repair, recycling and circular design.

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• Air: e.g. in marine transport, particulate pollution from heating of homes, and NOx and particulate pollutants from urban transport. • Water; for example, where provisions and industry are faced with efficiency requirements. • Climate adaptation; floods and overflows prevention. • Plastic: where possible to support the new National Action Plan against Plastic Pollution and the EU's Plastic Strategy, including promoting the development and demonstration of micro- plastic cleaning technologies and projects that prevent pollution from plastic products. (Danish EPA, 2017d) One particular issue for Denmark is waste and resource management. Denmark only have a few sorting facilities that can handle mixed plastic fractions (RenoNord, n.d.), which is currently exported for sorting or a large part goes disproportionately to incineration (European Commission, 2016). Although there are plans for new facilities (DAKOFA, 2017a). Another large waste stream comes from construction industry, which is estimated contributing 30% of the total waste volume. While Danish construction industry has a high recycling rate, construction waste is often processed into material of lower value (Danish EPA, 2017e). The waste reduction strategy “Danmark uden affald II - Strategi for affaldsforebyggelse” (April 2015) set the objective to avoid and minimize waste among Danish companies and consumers, based on two cross-cutting themes: resource efficient businesses and green consumption, in five areas: Food waste; Building and Construction; Clothing and textiles; Electronics and Packaging (Ministry of Environment and Food of Denmark, n.d.b). The strategy has been evaluated and the main outcome was that it has increased knowledge of waste and recycling among and citizens and companies but very few of the 12 expected effects were achieved (, 2017). A new national waste plan is in the pipeline and is expected to be reviled in 2020 (Danish EPA, 2018a). Several working groups under the Nordic Council of Ministers8 have published a number of reports concerning, textiles reuse and recycling (including a certification system), on circular economy in the Nordic construction sector, and end-of-waste criteria for construction & demolition waste (www.norden.org). The Ellen MacArthur Foundation report (2015) on circular economy highlighted following potential sectors9 in Denmark: Food and Beverage; Construction and Real estate; Machinery; Plastic Packaging and Hospitals. One issue in recycling concerns imported goods, as there is no information what type of materials a product is made of, here development and wider use of a ‘material passport’ could be an idea. As Denmark has a large agriculture sector with a significant environmental impact, there is scope to further develop for more efficient food production in a sustainable way. For instance, the Danish International Centre for Research in Organic Food Systems (ICROFS) announced new funding for projects that provide concrete, practical ecological solutions in relation to climate and environment or animal health and welfare (ICROFS, 2018). Energy is an important area, especially with a long-term goal of becoming a low- emission society based on renewable energy in 2050 and there is still much to do even if trends are positive. In 2017 the Danish Energy Commission presented their recommendations, including a paradigm shift in energy policy, that includes a cost-effective combination of energy-efficiency improvements, renewable energy deployment and electrification of the energy system.

8 Nordic co-operation is one of the world’s most extensive forms of regional collaboration, involving Denmark, Finland, , , Sweden, and the , , and Åland. 9 Based on five selected sectors, covering 25% of the Danish economy.

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60 council flats to be built in Lisbjerg near , Denmark, according to circular economy principles. Once the flats are no longer fit for living anymore, 90 percent of the building materials can be recycled without losing value, e.g. a window from the building can be used as a window in another house. The project, known as Circle House, has received nearly EUR 940.000 in funding from MUDP. Today the construction industry accounts for an estimated 30% of the total amount of waste produced in Denmark. While the Danish construction industry has a high rate of recycling, the waste often is recycled into materials of low quality. Key words: recycling, reuse, construction, resource efficiency Internet links: Danish Environmental Protection Agency (Danish): http://mst.dk/service/nyheder/nyhedsarkiv/2017/nov/nyt-projekt-skaber-60-nye-huse-med- materialer-som-kan-genbruges-i-fremtiden/ State of Green (English): https://stateofgreen.com/en/profiles/state-of-green/news/60-homes-built-from-reusable- materials#/.Wh5a4PZoSFE.linkedin Contact: Miljøstyrelsen (EPA), Haraldsgade 53, 2100 København Ø, Tlf. +45 72 54 40 00, [email protected]

3R Kontor I have been specializing in the reuse of used office furniture in a sustainable manner since 2015. The business concept is based on circular economic thinking, which means that they treat everything as a resource. Activities include environmentally-friendly purchase and selling of used furniture, donation and social hiring. 3R Kontor shows that a viable business is possible by including environmental considerations and social responsibility, and that they even can positively influence each other. 3R Office is owned by Holmris.Designbrokers, Denmark's largest retailer of commercial furniture. Key words: recycling, reuse, office furniture, social responsibility Internet link: www.3xr.dk Contact: Mr. Steffen Høgh (Director, partner), 3R Kontor ApSEngelsholmvej 238940 Randers SV, Tlf. +45 70 70 79 70

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Re-Match Stadiums and sports arenas throughout the world are increasingly using artificial turf and after it is worn-out, 8-10 years, a large amount of artificial turf is sent to landfill. As the first and only in the world, Re-Match has the technology to separate 99% of worn-out artificial turf into raw components, which then can be recycled and manufactured into new artificial turf. Re-Match also offers cut & roll and handling, including transport of the old turf and sale of the finished clean products to be used in other products. Re-Match has all required permits, notifications, and authorisations in place, including permits for transportation of used turf across borders, making disposal of artificial turf very easy for owners of the used turf. Re-Match has obtained the ETV Certification. Key words: recycling, artificial turf Internet link: http://re-match.dk Contact: Re-Match A/S, HI-Park 415, 7400 Herning, Tel.: +45 77 34 67 34, [email protected]

LEGO® plans to launch the first sustainable Lego bricks in 2018. The new sustainable LEGO elements are made from plant-based polyethylene made from ethanol produced from sugarcane. The sugarcane used in the production is sourced sustainably in accordance with guidance from the Bioplastic Feedstock Alliance (BFA) and is certified following global standards for responsibly sourced sugarcane. Picture taken from www.lego.com The plant-based plastic is technically identical to those produced using conventional plastic. The first bricks to be produced of the new material are, suitably, botanical elements such as leaves, bushes and trees. Key words: LEGO, plant-based plastic bricks Internet link: https://www.lego.com/en-us/aboutus/news-room/2018/march/pfp Contact: [email protected]

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3 | Barriers and drivers to circular economy and eco-innovation in Denmark

The single most important driver in Denmark is the increasing positive attitude towards circular economy. In general there is a big movement in society towards circular economy, local and regional governments have or are developing circular economy strategies, more and more Danish enterprises see the value of and opportunities in the circular economy model as way to increase their competitiveness, as well as the Danish population who is becoming more aware of their role as consumers, as the results from a web survey showed in 2017 (Danish EPA, 2017b). According to another survey on circular economy amongst Danish companies (Danish EPA, 2017a), 88% had a positive view of circular economy. On question what they will gain by applying circular economy, 42% of companies believe that they can generally reduce environmental impact by using circular economy and 40% believe that the use of circular economy generally prepares them better for the future. On the other hand, lack of knowledge about circular economy is perceived as the primary barrier to use circular economics as a business model, while (lack of) time was the second most important issue (probably most common amongst SMEs). Important is that 30% find that advice and consulting services are crucial for their business to get started or increase the use of circular economy model. As mentioned previously, such steps have been taken in terms of providing supportive tools. The MATChE (www.matche.dk) programme provides: knowledge on implementing circular economy (with focus on the manufacturing industry), assessment screening how ready (manufacturing) companies are in the transition to circular economy and helps to develop customised transition routes to circular economy. Another new support action is the portal CirkulærVirksomhed.dk (CircularBusiness.dk) which provides SMEs with more knowledge about circular economy. The general economic outlook for Denmark is good. Danish economy enjoying a solid growth of around 2% (2016-2017), where real GDP growth is driven by net exports, private consumption and investment. Employment levels and disposable income growth have been steady, although private consumption went slightly down. On the other hand, Denmark has seen relatively strong increases in food prices and services as well as a continuing increase in energy prices. (European Commission, n.d.a) This could impact purchase of organic food for the more price sensitive consumers as it is often prices higher than non-organic food. Rising house prices, residential investment is forecasted to remain an important driver of investment growth in the near future. With other words, existing buildings and new constructions should be seen as potential driver for eco-innovation and circular economy with energy-efficiency in mind, best supported by legislative and fiscal measures. The positive economic picture also confirmed by an investment survey conducted by the European Investment Bank (EIB) (2017)where the results was that Denmark has the highest share of top performing companies in terms of investment in the EU (European Investment Bank, 2018). Danish firms are generally positive about the economic outlook (similar to the rest of the EU), business prospects and availability of finance, whereas more firms, especially in the manufacturing sector, expect the political and regulatory climate to deteriorate than improve in the next 12 months (no specific reason is given). SMEs are among the most optimistic about the business prospects of their sector, which is positive as many eco-innovations take place in start-

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ups. On a note, on average, just over one third of firms’ building stock in Denmark is perceived to satisfy high energy efficiency standards (36%) (EU average of 39%). This is well in line with recommendations of the Energy Commission of the need to focus on energy-efficiency improvements and should be seen as a potential driver. On the other hand, 81% of Danish companies consider availability of skilled workers as an obstacle to their investment, especially construction and manufacturing sector. This could be even more critical when implementing energy efficiency technology in existing building and new constructions, as they require more specialised training, hence a potential barrier. 72% (same as EU average) also state that skilled staff availability issue is perceived as a long-term barrier to investment. Although, with its medium-term plan Growth and Prosperity 2025, the government has set out a reform programme for that includes initiatives to boost labour supply. One issue is the possibility for foreigners to acquire residence status in Denmark, while there have been efforts to attracts highly skilled researchers (The Post, 2013; Danish Customs and Administration, 2015), rules were changed in 2016 which made the permanent residency rules stricter, which could make it hard to attract highly-skilled workers. On the same time, the ‘Start-up Denmark’ programme, a (foreign) start-up founder will get a 2-year resident and work permanent with an additional 3- year extension if the business is on (Danish Business Authority, n.d.). A strong driver is Danish exports has been green energy technology and services, based on good international reputation in the field, with a strong support framework of export financing and assistance for internationalisation of innovation and commercial activities, both at home and abroad. Exporting Danish green technology and services is not only a way to make business but also part of the Danish Governments’ stand to combat climate change by diffusing green technology and know-how. In 2016 Danish companies exported energy technology for DKK 75.6 bn and services for DKK 8.2 bn (Danish Ministry of Energy, Utilities and Climate, 2017a). Exports of green and other energy technologies rose until 2014 (Danish Ministry of Energy, Utilities and Climate, 2015), which saw the highest level (DKK 78.4 bn) but decreased in 2015 (DKK 76.7bn) and 2016. The main reason is the decline of 2.4% (from DKK 34.0 bn to DKK 33.2 bn) in exports of green energy technology while energy services saw an slight increase. In 2016, the share of green energy technology of total goods exported was 6.7% compared to exports of all energy technology which was 11.8% of total Danish export, higher than from any other country in the EU. Although, the industry, especially wind energy industry, faces stiff competition and only stays ahead thanks to technological development and an export strategy. Also, water technology is doing well, with a value of DKK 19.8 billion exported in 2016, an increase with 0.5% compared to 2015 (Danish EPA, 2017c). The Danish export of clean air technologies was DKK 7,2 billion in 2017. The two sectors goal, is to double the Danish export before 2030. A driver is that Danish exports could be increased by offering complete (green) energy solutions as Denmark gains increased experience in the implementation, transition and use of green energy technology and solutions. Example of this is the wind turbine-coupled hybrid demonstrator that has been installed by in Spain to balance energy supply with grid demand (Vestas, 2018). However, despite increased competition the transition to renewable energy systems and increasing global demand for green technologies for which positions Danish companies well in the fields of energy, climate and environmental technology, hence a good driver. Nonetheless, to stay competitive, there is a need to invest more in research and innovation (R&I). The Global Cleantech Innovation Index (GCII) programme provides an insight into Danish clean tech innovation pros and cons as it “investigates where, relative to GDP, entrepreneurial clean

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technology companies are most likely to emerge from over the next 10 years – and why” (Cleantech Group, 2017). In the latest edition from 2017, Denmark ranks 1st (followed by, Finland and Sweden), up from 5th position in 2014, based on strong scores in both inputs and outputs of innovation (Cleantech Group, 2017). The reason is that Denmark performs strongly in key contributing cleantech specific drivers, which include the amount of capital raised by cleantech funds and the number of cleantech organizations. Although the report warns that the recent cut in public cleantech R&D budget, which is not accounted for in the 2017 Index, will most likely have a negative effect in the future (according to the eco-innovation index ‘Governments environmental and energy R&D appropriations and outlays’ this has already taken place as Denmark is positioned below EU average for the for first time). Denmark is seen as a “relatively inefficient innovator” (Cleantech Group, 2017) mainly due to low performance in emerging cleantech innovation, while ranking high on patent levels, it is pulled down by the low amount of venture capital investment. Commercialised cleantech is Denmark's strong point, where the country is far ahead of the other countries, with the country scoring top marks for cleantech exports, the number of public cleantech companies and the number of renewable energy jobs. OECD ‘Green Growth Indicators 2017’ also ranks Denmark as a leader in environmental technology and innovation and that environmental related technologies reaches 22% share of all inventions (OECD, 2017). On a political level Danish municipalities and regions are playing a key role and are heavily involved in the transition to circular economy. This is of course being a driver as they are well positioned in society in developing public-private relations and have established connections to stakeholders, i.e. they have the experience to develop public-private partnerships, system building and are part of value-chains, all factors necessary in a circular economy. In general, one can say that these relations themselves are drivers as there is a history and willingness to cooperate across sectors in Danish society. Municipalities and regions are also well positioned as many of the areas that concern eco-innovation and circular economy are under their responsibility. For instance, Danish local authorities are responsible for waste disposal and are in have a strong position on the market through public procurement, hence they can disrupt the market by demanding green products or products produced according to circular economy principles. On the other hand, a barrier is that there is no extra budget or finance from the national government to execute activities related to circular economy, which means that municipalities and regions have to plan for activities and project related to circular economy within their given budget. In contrast, to improve the utilization of Denmark’s sustainable energy production, the Danish Government has agreed to spend DKK 130 million (EUR 17.50 million) on large-scale energy storage projects (Copenhagen Capacity, 2018). This could become a barrier if the governments sends an unclear message how much available funding there is for eco- innovation, considering that they recently cut the public cleantech R&D budget. In terms of legal framework, a new national waste plan is in the pipeline and is expected to be presented in 2020 (Danish EPA, 2018a). A new regulation on environment, agriculture, water and biodiversity is being introduced, while new strategies and policy agreements are planned to be revealed in 2018 on climate, energy, transport and agriculture (Mortensen, 2018). Several groups have provided recommendations to the Danish Government related to circular economy and transition to a green society, from: • the Advisory Board for Circular Economy, with 27 points of recommendation.

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• the Energy Commission which recommends a paradigm shift in energy policy. • the Chairmen of the Danish Economic Council of Environmental Economics regarding contains three chapters that focus on Danish climate policy. It needs to be seen how much of these recommendations the Danish Government will take into consideration and produce any action plans accordingly. There are also a number of industry and sectoral associations that also have their own recommendations, e.g. Dansk Energi (Danish Energy - www.danskenergi.dk), Dansk Industri – DI (the Confederation of Danish Industry - www.danskindustri.dk) and the Danish Waste Association (www.danskaffaldsforening.dk). A driver is the willingness to learn by evaluating the different governmental programs as in the case of the Danish resource strategy (Ramboll, 2017) and of MUDP financed projects (DAMVAD Analytics, NIRAS, 2017). For the MUDP evaluation, one of the conclusions was, and can be seen as a barrier, that there are a number of solutions and products that have not been further developed after the project period and, for now, will not have a concrete business or environmental impact. However, some project partners have expressed interest to revisit some of the projects. A driver is also the participation of Denmark in the Nordic Council of Ministers, where cooperation on Nordic bio economy and green growth is taking place10. Activities extends from publication to development of a proposals for a Nordic strategy for the bio economy. Important is the learning from good examples in the different countries, like the ‘Green Growth in Nordic Regions’ project that highlight key characteristics of 50 Nordic green growth cases (Nordregio, n.d.b) and serve as a source of inspiration for practitioners and policy-makers (Nordregio, 2016). While productivity in the Danish economy remains among the highest in the EU, productivity growth, due to the service sector, has been falling since the second half of the 1990s, although this has been similar in other EU member states (European Commission, 2018a; OECD, 2016b). One issues is that the economy is not as well connected to global value chains as similar smaller open economies, and despite relatively high level of investment in knowledge-based capital it does not bring expected outcomes (OECD, 2016b). Limited competition in several domestically oriented services sectors has been identified as the reason. While some measures have been taken by the Danish Government, to strengthen competition and productivity, e.g. through simplification of rules and regulations, there is still room for improvement in some areas according to the Danish Productivity Board (European Commission, 2018a). Better procurement processes in the public sector is another issue. For instance, the use of performance models in procurement for hospitals in circular economy opportunity identified as a solution in the Ellen MacArthur Foundation repot (2015). The Ellen MacArthur Foundation (2015) also lists insufficient competition as a barrier to circular economy. It also states that policy interventions at EU-level is needed to complement national Danish policies in this issue as the value chains of many sectors extend across borders. For instance, product policy and promoting the market for secondary raw materials are areas that could be coordinated at European level in order to simplify and reduce the cost of conducting (circular) business.

10 http://www.norden.org/en/theme/nordic-bioeconomy

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Barriers Drivers

Economic Cuts in funding of environmental and Sound economy and fiscal situation climate activities and initiatives Access of public funding reduced with new Good access to private funding government Low productivity Incentive to better use resources Low amount of venture capital investment Many initiatives for start-ups Small domestic market Strong exports in green energy technology and services, that has even higher potential Nordic cooperation in related areas Insufficient competition in certain sectors Opportunity to increase competition through circular economy

Technological Availability of mature technology at scale Investments and research into new technology and processes Level of commercialisation of research and Well-developed research and innovation innovation results infrastructure, good science base Higher competition in green flagship Selling solutions and offering Danish technologies experience, international cooperation

Scaling up green tech innovations High level of commercialisation of green technology Human Lack of skills and capabilities relevant to High public spending on education circular economy Better use highly skilled immigrants Pool of highly skilled immigrants Social and Business and consumer behaviour, break Increasing positive attitude towards cultural ingrained habits and practises circular economy culture Lack of knowledge how to apply circular Interest in applying circular economy as a economy business model

Natural capital Few natural resources Through high level of consumption, lot of waste that can be used in circular economy practises Better collaboration needed between High level of public-private cooperation research and business

Policy Mixed message and public funding Strong support towards circular economy framework towards circular economy on local and regional level Creation of expert committees on CE and energy transition by the government Regulatory Unintended consequences from existing Opportunity – assess where regulation legislation that could limit circular needs to be adapted to circular economy economy opportunities

Source: based on literature review, interviews and analysis made by the author

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Overall, Denmark has a strong science base and business innovation foundation. Denmark’s R&D intensity (GERD) has been around the EU2020 target of 3% of GDP since 2009 reaching 2.9 % of GDP in 2016, fourth highest (Eurostat, 2018b). The country has the second highest public R&D intensity (GBAORD), with a small contraction in 2016, and the fourth highest BERD intensity in Europe. There is good access to investment and funding, both public and private, although there is room for streamlining public funding programmes further. Spending by the private sector is about twice as high as the public-sector spending (Mortensen, 2018) and more initiatives have taken place to support start-ups and SMEs. Another area that has improved is the cooperation between universities and the business sector to better translate the high public investment in R&D in universities into productivity, employment and economic growth (European Commission, 2018a). Both the Innovation Strategy: ‘Denmark – a nation of solutions (2012-2020)’ (The Danish Government, 2012) and the new Government addresses these issues (Regeringen, 2016). The simplification of the overall research and innovation system by the previous government has taken place which resulted in the Innovation Fund Denmark (Innovationsfonden) in 2014. The Danish Roadmap for Research Infrastructures 2015 presents the Danish Ministry of Higher Education and Science's vision and strategic objectives for the research infrastructures area until 2020 and contains a catalogue of specific proposals for new national research infrastructures to upgrade existing research infrastructure (Danish Agency for Science, Technology and Innovation, 2016). Such measures could help to overcome the barrier of (green)technology not yet fully available at scale (Ellen MacArthur Foundation, 2015). The discussion on commercialisation and cooperation between research and business is important regarding the issue of the availability of mature technology. This is especially important for the more technology dependent circular economy sectors, for instance: 3D printing and design for disassembly in construction; bio-based alternatives to plastics; remanufacturing and waste separation management (Ellen MacArthur Foundation, 2015). Denmark is one of the largest spenders on education in the EU, overall educational outcomes remain above the EU average in terms of performance and equity (European Commission, 2018a). Danish science, technology and industry skills lie in the mid-range of OECD countries (OECD, 2014a; European Commission, 2015; OECD, 2015). One progress that Denmark has made is in tertiary education attainment. The share of the population aged 30-34 which has successfully completed tertiary studies has increased from 39.2 % in 2008 to 48.6 % in 2017 (European Commission, n.d.b; European Commission, 2018a). This should help to increase the share of high- skilled workers in the private sector and choose more demanding jobs (OECD, 2014b). On the other side, in post-secondary non-tertiary education 97% of students in Denmark graduate with a degree in social sciences, business and law (OECD, 2016a). This could become a barrier considering the increased need for technical skills. For instance, in the Netherlands, 69% of graduates earn a degree in engineering, manufacturing and construction, which is more relevant to circular economy. That the right sets of skills were also one of the findings of the Danish case study by the Ellen MacArthur Foundation (2015). The Danish Government, although not explicitly referenced to circular economy, sees a stronger need for alignment between the choice of studies made by students and what skills the labour market needs in general. The issues of labour market inclusion remain a challenge in Denmark and many of the non-EU born immigrants with a tertiary education are over-qualified for their job. This should be seen as a barrier (Aasen, Leszczuk, & Pojar, July 2016), or opportunity, in developing a circular economy in Denmark as there is a lack of capabilities and skills and many are highly skilled workers that could be more productive and help to bridge the gap in terms of skills. Although many of the issues regarding skills and education are addressed in the latest government platform (Regeringen, 2016).

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In the previous report there was a discussion on non-commercial barriers to the Danish market. These included imperfect information on opportunities in circular economy, enterprises in a value chain have different incentives and goals to a transaction (agency problem), and administrative and transaction costs. Many of these have in one way or another, to different degree been addressed. For instance, there is CirkulærVirksomhed.dk (CircularBusiness.dk), a portal by the Danish Environmental Protection Agency 's that provides advice and guidance for SMEs to get started or move on with circular economy, or ‘mitmiljo.dk’ that helps Danish citizens on action-oriented advice on environment and nature in your everyday life. The Danish Government that came into power in June 2015 has also address the issue of regulations and red tape in business and even produced a strategy on sharing economy (Danish Ministry of Industry, Business and Financial Affairs, 2017). Other issues like cost of externalities is difficult to solve as one would need an international agreement on how to reflect the true cost of environmental impact in the final product or service. Overall, despite fierce competition, Denmark has managed to keep its flagship industry on top, manufacturing of wind turbines. A recent trend in large off-shore wind farms and larger turbines has given new life into the industry and in 2016 Vestas cemented its number one position. While Chinees Goldwind sold more turbines over the year, 3656 to Vestas' 3589, Vestas delivered more capacity, 2.5MW vs Goldwind’s 1.8MW (Windpower Monthly, 2017). Another barrier to continued growth in eco-innovation and a reason for low socio-economic impacts could be the high living costs and . This makes it more difficult to attract foreign researchers and scientists to the country, and it has resulted in a decreasing competitiveness, due to high salaries. As a result of high economic activity, several sectors appear to be facing increasing shortages of skilled labour increasing pressure on growth. While currently not an issue, it is higher than in trading partners and ahead of productivity developments, thus there are concerns about losses of external competitiveness (European Commission, 2018a). Finally, probably the most challenging barrier, in Denmark, and in the modern society in general, is the ‘take-make-waste’ economy model we are living according to, are the ingrained customs and habits. To be able to realise the potential and use the opportunities that circular economy and eco-innovation can offer, behavioural changes are necessary both on the part of consumers and businesses.

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4 | Policy landscape in Denmark

Denmark has had a progressive green policy backed by an ambitious policy framework, a multiple- solutions approach and necessary funding (see previous EIO Country Profile from 2015 for a full background). The Danish Government that came into power in June 2015 has taken a more business- and market-oriented approach to sustainability, where cost effectiveness plays a key role while promoting growth and employment at the same time. The global perspective of Danish clean energy technology and services is being emphasised both in terms of dealing with climate change and as way creating jobs and business for Danish companies, which is also visible in the mandate of the EUDP programme. Examples of the global perspective and Danish involvement are P4G11 - a network of world leaders seeking breakthroughs in green economic growth - and Mission Innovation12 - a global initiative of 22 countries and the European Union to dramatically accelerate global clean energy innovation. The picture regarding the commitment to green technology and circular economy is a bit mixed, nonetheless recent trends and government statements are in general positive. While on hand the R&D budget for clean technology has been reduced, the Danish Government seems to have pledged funding to large projects, like the large-scale energy storage projects (Copenhagen Capacity, 2018). The Climate Change Performance Index 2018 Denmark ranks 17th (CCPI 2018) points out that the current government cancelled plans for a coal phase-out as well as the existing reduction targets after taking office, which resulted in a relatively low performance in terms of climate policy. The country still ranks high in terms of renewables and on energy use due to positive trends in both categories (Germanwatch, 2017). It should be noted however, that this report came out before Denmark, as part of a collation called ”Global Alliance to Power Past Coal”, committed itself in 2017 to phase out the use of coal in their electricity supply by 2030 (State of Green, 2017; UNFCCC, 2017; Jones, 2017). Furthermore, in 2018 Denmark ended oil and gas exploration and drilling on land and inland waters (Danish Ministry of Energy, Utilities and Climate, 2018b). While the ‘new’ Danish Government closed the Green Transition Fund (Grøn Omstillingsfond13) in 2015, green transition is included in the 2016 governmental platform (Regeringen, 2016), and it set up the Advisory Board for Circular Economy which has delivered 27 recommendations (June 2017), and appointed the Energy Commission which presented (April 2017) its recommendations laying out an ambitious energy policy to the Danish Government, which is to be included in the process of defining energy policy for the next phase of Denmark’s green transition. Following the recommendations of the Advisory Board for Circular Economy the Danish Government has said that it wants to allocate funding of DKK 20 million (approx. EUR 2.7 million14) annually in 2018- 2019 and DKK 10 million for 2020-2021 for circular economy initiatives. In addition, the Danish Ministry of Environment and Food, and the Danish Ministry of Industry, Business and Financial Affairs wants also to allocate similar amounts to circular economy activities (DAKOFA, 2017b). The Danish Government has launched (October 2017) a comprehensive strategy for growth through

11 https://p4gpartnerships.org 12 http://mission-innovation.net 13 https://groenomstilling.erhvervsstyrelsen.dk/ 14 Exchange rate 11 April 2018

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the sharing economy and includes 22 initiatives that will make it easier to be part of the business economy and more attractive to the consumer while ensuring tax payments (Danish Ministry of Industry, Business and Financial Affairs, 2017). Moreover, through financing from the Danish budget, Statistics Denmark developed between 2015 and 2017 a series of environmental- economic accounts – the Green National Accounts – which resulted in the publication of the report “Green National Accounts for Denmark 2015-2016” (see good practise example below). There is also the independent economic advisory body Chairmen of the Danish Economic Council of Environmental Economics which since 2008 has published yearly reports and the most recent one (2018) focuses on Danish climate policy (Danish Economic Councils, 2018). Furthermore, evaluation of different government programmes has taken place, e.g. the Danish waste strategy (2017), MUDP (2017) and EUDP (2015). The results in the case of EUDP was taken into consideration into the EUDP Strategy for 2017-2019. Local and regional governments are very much the current drivers in the transition to circular economy. Despite no dedicated, for time being, funding for circular economy, local and regional governments are preparing circular economy strategy and position papers that soon will be presented and implemented and building already good cooperation between the two administrative levels on circular economy, the links are being intensified. A number of Danish municipalities and regions, together with one Ministry, are members of ‘Partnership for Green Public Procurement’ (Partnerskab for Offentlige Grønne Indkøb) is a collaboration between public organizations that wish to make environmental efforts through procurement (see good practise example below). Nordic cooperation through the Nordic Council and the Nordic Council of Ministers is important and common policies have an impact on member countries. There is a strong platform for green growth that has emerged between the – Green Growth the Nordic Way (Norden, n.d.).

4.1 Eco-innovation funding The Danish Government has been promoting eco-innovation initiatives since 2006, after a request from a unanimous Danish Parliament (the Folketing) (Ministry of Environment and Food of Denmark, n.d.). Current measures in eco-innovation and circular economy/green economy are presented below. • Funding and activities in the field of environmental technology: 1. Danish Eco-Innovation Program (MUDP) 2. Danish Green Investment Fund 3. Inno-MT • Funding and activities in sector specific environmental technology: 4. Green Development and Demonstration Programme (GUDP) (Food and agriculture) 5. Energy Technology Development and Demonstration Program (EUDP) • Non-thematic funding: 6. Innovation Fund Denmark 7. The Growth Fund 8. The Market Development Fund

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1. Danish Eco-Innovation Program (MUDP) The Danish Eco-Innovation Program (in Danish: MUDP - Miljøteknologisk Udviklings- og Demonstrationsprojekt) – ecoinnovation.dk – dates back to 2007. Last revision took place in 2015 for the period 2015-2018. Objective: to help Danish companies develop, test and demonstrate new environmental technology solutions that, in addition to delivering better and cost effective environmental solutions, and also have the potential to contribute to increased exports and more green production jobs in Denmark (Danish EPA, 2017). Supported sectors: water; climate change adaptation; circular economy and recycling of waste; cleaner air; less noise; fewer hazardous chemicals; the industry's environmental performance; and ecological and sustainable construction (Danish EPA, n.d.). The program rests on three pillars: • The subsidy scheme: Funding for: - developing, testing and / or demonstrating environmental technology - full scale demonstration facilities (lighthouse projects); • Public/private partnerships for innovation: Cooperation and dialogue between private companies, knowledge institutions and authorities on new possibilities to create better and cheaper environmental solutions relating to existing environmental challenges and future national and international regulation. • Environmental cooperation and green exports: Demonstration of Danish companies’ environmental solutions to foreign partners and targeted export promotion. A Board of Directors has been appointed with the mandate to manage and implement the strategy plan laid out under the priorities of the Ministry of Environment and Food. The Board prepares an annual action plan, which is based on the Board's strategy for 2016-2019, as well as priorities under the Ministry of Environment and Food on environmental challenges. For 2018, MUDP has been allocated approximately DKK 86 million. (Danish EPA, 2018b)

2. Danish Green Investment Fund The Danish Green Investment Fund (Danmarks Grønne Investeringsfond) is an independent state loan fund with the purpose of co-financing economically viable projects that facilitate and support the sustainable development in Denmark. The fund seeks to bridge the gap between traditional bank financing and equity capital. The fund was established as part of the agreement ‘Et Grønnere Danmark’ (“A Greener Denmark”) from 2014 (Ministry of Finance) and has a net capital of up to DKK 200 million as well as a state guaranteed lending limit of up to DKK 5 billion in capital to co-finance projects within following areas:, Renewable energy sources, Energy optimization and Resource efficiency The evaluation is based on four funding criteria: green effect; healthy economy; scalability and socio-economic return. Eligible are: privately-held companies; non-profit housing associations; public sector companies and institutions with budgets separated from the municipalities, regions and the state. (The Danish Green Investment Fund, 2015) Link: http://gronfond.dk

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3. Inno-MT Innovation network for environmental technology (Inno-MT) is a partnership that supports projects in waste, air, water and soil. A project may include all forms of technology development, service innovations and similar environmental technology. Funding of DKK 100,000-400,000 can cover covers costs for advice and technical assistance from the network's knowledge partners. Inno-MT was formed in December 2010 with DKK 14 million funding from the Ministry of Science, Innovation and Higher Education. In 2014 Inno-MT received DKK 27.4 million to continue the work until 2018. The network currently has 164 members, divided across GTS institutes, universities, public authorities and private companies. Inno-MT’s secretariat is located at CLEAN in the centre of Copenhagen. The network has four primary focus areas: 1. Soil resources and nutrient cycling 2. Clean air technology 3. Efficient use of resources: 4. Water treatment and water supply Activities funded are: Innovation Projects; Technology Outlooks; Technology Demands and Events. Technology Demands: is a new fund by Inno-MT and provides funding for innovation projects involving small and medium sized companies and universities. Technology Demand is aimed companies with either a demanded technological knowledge or companies with environmental challenges. A Technology Demand is subsidized with DKK 150.000 DKK advise and technological assistance. Link: https://inno-mt.dk/english (Innovationsnetværk for Miljøteknologi, n.d.)

4. Green Development and Demonstration Programme (GUDP) GUDP (Grønt Udviklingsog Demonstrations Program) was established under the Ministry of Food, Agriculture and Fisheries in 2010. GUDP seeks to create better green sustainability in the Danish food sector by solving some of the climate and environmental problems facing society. At the same time, the food sector must continue to create growth and secure jobs in Denmark. The budget in 2018 is DKK 25 million for special ecological efforts. GUDP promotes international cooperation in the projects where it can add value to a project and added knowledge. The funds are earmarked initiatives in organic food production and are served by the board in cooperation with ICROFS (International Center for Research in Organic Agriculture and Food Systems). (Danish Agricultural Agency, 2017)

5. Energy Technology Development and Demonstration Program (EUDP) EUDP or the Energy Technology Development and Demonstration Program (in Danish: Energiteknologisk udvikling og demonstration). The Energy Technology Development and Demonstration Program (EUDP) is a public grant scheme. The scheme supports new technology in the energy field, which can help meet Denmark's energy and climate goals. EUDP growth and job creation, it should increase security of supply and make Denmark independent of fossil fuels. The 2017-2019 strategy (Danish Ministry of Energy, Utilities and Climate, 2017b) focuses on: - Greater, global perspective and commercialization potential - Business effects - jobs, sales, exports, growth - Renewed evaluation criteria for selecting eligible projects - Specific impact targets

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- Profile of EUDP as a program - International cooperation.

6. Innovation Fund Denmark Innovation Fund Denmark (Innovationsfonden) was established in 2014, consolidating the Danish Council for Strategic Research, Danish Council for Technology and Innovation and Danish National Advanced Technology Foundation. The fund invests in new knowledge and technology at an early stage where other funding institutions might not be convinced of its potential without taking any stake in the project nor is there request of repayment. Assessment criteria is based on the projects potential to generate growth and employment. Guided by the three principles: ‘We invest in: your talent, your enterprise, your collaboration - if you have the knowledge and the ideas to create growth and employment’ (Innovation Fund Denmark, n.d.). In 2018, Innovation Fund Denmark will invest DKK 1.4 bn. The programme funds: - Grand Solutions: For substantial investments and long-term projects/partnerships where the focus is on research, technology, experimental development and market development. Read more - InnoBooster: For small enterprises and entrepreneurs with sound development plans. - Talents: For undergraduates, recent graduates or postgraduate researchers aiming to become entrepreneurs or to secure a research career in the private sector.

7. The Danish Growth Fund The Danish Growth Fund (‘Vækstfonden’) is a state investment fund that contributes to the creation of new companies by providing capital and expertise. Since 1992, The Danish Growth Fund has together with private investors co-financed growth in more than 6,600 Danish companies with a total commitment of more than DKK 20 billion. The Danish Growth Fund invests equity and provides loans and guarantees for small and medium-sized enterprises in collaboration with private partners and Danish financial institutions. (www.vf.dk)

8. The Market Development Fund The Market Development Fund (‘Markedsmodningsfonden’) promotes growth, employment and export, particularly for small and medium-sized enterprises in areas where Denmark has particular strengths and potential. The Fund has three primary focus areas: - Market development through co-funding for private enterprises’ innovative solutions - Market development through innovative public procurement - Market development through industry partnerships

A midterm evaluation of effects shows that DKK 1 million in funding from the Market Development Fund generates 8.5 jobs in Danish companies. The evaluation estimates that enterprises that have received co-financing from the Fund collectively will increase turnover by DKK 3.5 billion, exports by DKK 2.7 billion and create 2,000-2,300 jobs by 2018. The Market Development Fund is the result of a reorganization of the Business Innovation Fund. With its commercial focus, the Market Development Fund has a unique position in the Danish innovation system as other subsidy schemes focus on the early developmental phases. The Market Development Fund takes over where R&D and demonstration programmes stop in order to assist in the final market adaptation of enterprises’ innovative new solutions. (The Market Development Fund, n.d.)

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4.2 Other funding

Public innovation centres that act and work similar to venture funds, but invest much earlier: • PreSeed Ventures (preseedventures.dk) is Denmark’s largest innovation incubator and offers also support service free of charge. PreSeed Ventures runs the PreSeed Academy and is a first serious attempt at establishing a Danish start-up school. • CapNova (capnova.dk) is a Danish investment and development company. It runs, amongst, the national accelerator programme, Scale-Up Denmark Bioeconomy, and offers ambitious programmes for enterprises with international ambitions and potential for high growth within the sectors: Bioeconomy, Industrial Symbiosis, Biotech Production and Biomass Use and Optimization • Syddansk Innovation (www.syddanskinnovation.dk) invests risk capital in innovative ideas and provides expert advice, business experience and networking. One of the three sectors of investment is cleantech. • Borean Innovation (www.borean.dk) is an innovation environment. Innovation environments invest risk capital in the early stages of a company's development, where it is not yet certain that the business idea is sustainable. One of the fields of investment is cleantech.

Private funding - there is a wide range of private founds that support green and circular economy projects, hence the mentioned sources below are just a snap-shot: • The Velux Foundations are comprised of two philanthropic foundations VILLUM FONDEN and VELUX FONDEN that provide grants in science, environmental, social and cultural purposes in Denmark and internationally (veluxfoundations.dk). • Realdania (www.realdania.org) is a member-based philanthropic organization that supports projects in the built environment: cities, buildings, and built heritage. There are five focus areas and one of them is innovation in the construction where funded projects should, amongst, secure a better and more sustainable environment. • Danish Maritime Fund (Den Danske Maritime Fond - www.dendanskemaritimefond.dk) aims to strengthen and develop the Danish shipping and shipbuilding industry in order to create jobs and strengthen the competitiveness of the industry within five focus areas and one of them is environment. The funding goes to research, technology and product development, training, recruitment and other types of initiatives with a maritime focus. The Maritime Fund annually provides DKK 50M in support for development of new products and technologies within the Danish maritime industry. Funding is provided to industrial and commercially driven projects, and non-profit projects (non-commercial projects).

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4.3 Advisory bodies and reports

The Advisory Board for Circular Economy

In 2016 the Danish Government established the Advisory Board for Circular Economy consisting of 12 CEO's and firm leaders from big as well as small Danish companies (Ministry of Environment and Food of Denmark, n.d.a). On June 7th 2017 Advisory Board delivered a report (Advisory Board for Circular Economy, 2017) with 27 recommendations for specific efforts Denmark can promote in order to encourage the transition into a circular economy. The Board’s states that: “Our vision is, that by 2030 Danish industry is a global leader within development, implementation and export of circular solutions, and that Denmark is world-renowned as a hub for the circular economy” (Advisory Board for Circular Economy, 2017). The recommendations are formulated in four general themes: 1) The circular value chain; 2) Design and production; 3) Consumption; 4) Recycling.

Green National Accounts As mentioned in this report the Danish Government allocated in the national budget funding for a three-year project ‘the Green National Accounts - for Denmark’ that lasted from 2015-2017. The project developed a full set of environmental-economic accounts for Denmark according to the principles of the international statistical standard System of Environmental-Economic Accounting 2012 – Central Framework. The final outcome was the report - “Green National Accounts for Denmark 2015-2016” (see good practise example below). The publication highlights the relationships between the economy and the environment and comes to the conclusion that a decoupling between growth in GDP and growth in greenhouse gas emissions has taken place in Denmark. (Statistics Denmark, 2018)

The Danish Economic Council of Environmental Economics The Environmental Economic Council was established by law in 2007 and is one of two councils of the Danish Economic Councils (www.dors.dk), which provides independent analysis and policy advice to Danish policy makers. The Environmental Economic Council has 24 members representing unions, employer provide independent analysis and policy advice to Danish policy makers s, NGO's and the Danish Government. The members meet once a year to discuss a report prepared by the Chairmanship. The Environmental Economic Council. Each year Environmental Economic Council produces a report on economy and environment. The 2018 report focuses on 1) Regulation of agricultural emissions of greenhouse gases; 2) Reducing CO2 from passenger cars; and 3) Climate policy towards 2030. The report concludes that “Denmark must reduce emissions of greenhouse gases in non-ETS sectors by 39 per cent in 2030, compared to 2005. In 2015 agriculture and passenger cars accounted for respectively 31 and 21 per cent of total Danish emissions in non-ETS sectors” (Danish Economic Councils, 2018).

4.4 Ecolabeling, environmental certification and standards As previously mentioned in chapter 2 many companies in Denmark apply a strong environmental regulation through the European Eco Management and Audit Scheme, which set stricter environmental targets and standards for the company performance than ISO14001. As mentioned in chapter 1, Danish companies have also been successful in Environmental Technology Verification (ETV), a new tool to help innovative environmental technologies reach

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the market. Of the 28 verified technologies, eight are from Danish companies or 28.6% of all verified technologies (European Commission, 2018b) Data shows that there has been a negative trend in EMAS-registered organisations, while EMAS- registered sites have been fluctuating. One reason why Denmark has a lower frequency of certifications could be the high share of products linked to agricultural production, where producers have been more resistant to obtain environmental standards and use food related eco- labelling, e.g. Danish organic label, and EU organic label which also has an impact on the farmers. Green Building Council Denmark (DK-GBC; www.dk-gbc.dk) is a non-profit member organization that works to promote sustainability in buildings and the built environment in Denmark. The association's goal is to improve sustainability in both the building and the surrounding environment by spreading the Danish DGNB certification scheme. Focusing on both environment, economy and social conditions, DGNB wishes to promote a holistic approach to construction and urban areas. The Danish organic label – the ‘Q’ logo – is an inspection label and shows that the latest preparation of the product has taken place in a Danish company inspected by the public authorities. The logo can be seen on both foods that originate from Danish organic farms and on imported foods that are processed, packed or labelled in Denmark. Denmark was the first country in the world that implemented a state control for organics in 1987. A strong standard is the Nordic Swan Ecolabel (www.nordic-ecolabel.org) which sets strict environmental requirements in all relevant phases of a product's life cycle; sets strict requirements for chemicals used in ecolabel led products; tightens requirements for goods and services continuously to create sustainable development; and certifies and verifies that all requirements are met before a product is approved. It is possible to acquire the Nordic Swan Ecolabel certification within 60 different product groups counting more than 200 different product types, including buildings.

4.5 Public green procurement Since 2006 Denmark has a cooperation in public green procurement called ‘Partnerskab for Offentlige Grønne Indkøb’ (see good practise example below). Membership is voluntary and for free. There is a Nordic co-operation (www.norden.org) under the initiative ‘Green Growth Projects’ called ‘Working together on green procurement in the public sector’. The main objective of this project is to strengthen green growth in the Nordic countries through a common approach to green public procurement - both in terms of policy development and on a more practical level (Nordic Council of Ministers, n.d.) Forum for Bæredygtige Indkøb (Forum for Sustainable Procurement) – www.ansvarligeindkob.dk - is an initiative under the Ministry of Environment and Food. The purpose of the forum is to promote environmentally conscious and responsible procurement among professional buyers in both public and private companies. The forum is a non-profit network that includes the portal www.ansvarligeindkob.dk. The Forum brings together a number of organizations across industries and the public and private sectors about the purpose of disclosing and knowing about sustainable procurement.

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4.6 Local and Regional initiatives Danish Municipalities KL (The federation of Danish municipalities)15 plays a strategic role in the implementation and transition into a circular economy. KL has a prepared an inspiration catalogue, 'The Circular ' (KL, 2017) for the country's municipalities, which describes what circular economy is and how it can be introduced in a local context, including what possibilities there are and what type of initiatives can be undertaken locally. There are also concrete examples and recommendations for how circular economics can be integrated into the work of municipalities. The catalogue is divided into four main themes: Strategy, plan and supply, business Development, Purchase and tender, and Building and Construction. The municipalities are currently preparing circular economy strategies that will have an impact for years to come. A good example of how Danish municipalities work in circular economy is Municipality which won first prize in ‘Circular economy in tendering’ (‘Cirkulær økonomi i udbud’) for including circular economy principles in tendering for school furniture (Udbudsmedia.dk, 2018). Danish Regions The five Danish regions have been crucial to the circular economy movement in Denmark, with first policies initiatives developed back in 200816 by Central Denmark Region (Region Midtjylland), around the cradle-to-cradle idea, with initiatives followed by other Danish regions shortly after (Juel, Project manager at Rethink Business, 2016). Today the five regions are deeply involved and many projects have since then emerged. One such project is ‘Rethink Business’ (http://rethinkbusiness.dk) by Central Denmark Region, which has the objective to increase the share of innovative enterprises in region, to create sustainable projects and products that are in demand in the local and global market. There are many other god examples which can be read in the document ‘Indsatser vedr. cirkulær økonomi i de fem regioner’ (Danish Business Authority, 2017). Currently the five regions are also working together on a common position paper on circular economy within four areas of focus (Juel, Leader of Circular Economy Team (Central Denmark Region), 2018)

Another cross-regional initiative is Scale-Up Denmark (https://scale-updenmark.com) an ambitious training concept for entrepreneurs and small enterprises with the aim to establish an elite of high growth companies in Denmark. Scale-Up Denmark consists of an Advisory Board of 12 members representing the five Danish regions along with various representatives from Danish business and trading institutions. In 2016, the first hubs were established, and in 2017 the second wave of hubs will be established, 12 in total. Two of the hubs are in the fields of clean-tech and energy efficient technologies. Scale-Up Denmark is founded and funded by the five Danish Regions in partnership with the Danish Ministry of Business and Growth. Scale-up Denmark has DKK 165 million from the regions' business development funds, from EU regional funds and from the participating companies themselves.

15 KL is a private interest and membership organization for all 98 municipalities in Denmark - www.kl.dk. 16 For more historical background see previous report from 2015.

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4.7 Supportive tools and initiatives in circular economy There are a number of supportive tools and initiatives to help Danish citizens and companies to become more sustainable in their daily life and transition into circular economy. One such initiative is the MATChE programme carried out by Technical University of Denmark in order to support Danish industry to increase its competitiveness, growth and job creation by demonstrating how to engage in an effective transition towards Circular Economy (see good practise example below). Another is CirkulærVirksomhed.dk (CircularBusiness.dk) by the Danish Environmental Protection Agency's portal providing advice and guidance for SMEs to get started or move on with circular economy (see good practise example below). For citizens there is ‘mitmiljø’ (my environment) a web portal run by the Danish Environmental Protection Agency, that provides articles with tips, videos, quizzes, etc., offering short, action-oriented advice on the environment and nature in daily life. The goal is to make it easy for Danish citizens to think green.

4.8 Other initiatives

Green Labs DK Were launched in support of the Danish Government’s Business Climate Strategy and there are now 10 in total (increased by two in 2014). The main goal is to facilitate the development of Denmark as a green laboratory for technology development to secure competitive framework conditions for enterprises active in the field of clean technology, including research and development, demonstration and marked entrance. The programme primarily focuses on efficient energy use and renewable energy but can also support all technology types which can contribute making Denmark independent of fossil fuels. In 2015 an evaluation (Sekretariatet for Green Labs DK, 2015) was conducted by the Danish Energy Agency with a positive result, fulfilling their objectives and contributed to technology development and to create growth within the technology areas where Denmark has a position of strength. (Danish Energy Agency, n.d.)

FORSK2025 (RESEARCH2025) FORSK2025 provide a consolidated overview of promising research areas of the future as seen from business, organizations, ministries, knowledge institutions and a wide range of other stakeholders. FORSK2025 is guided by the idea that public strategic investment in research must help solve societal challenges and create growth and prosperity and should be source of inspiration and knowledge and as a basis for prioritizing research investments in various contexts such as political negotiations of the distribution of the research reserve, strategic considerations at Danish knowledge institutions and in relation to Danish participation in international research cooperation. FORSK2025 has identified 19 research topics are identified within four main areas: 1) New technological opportunities; 2) Green growth; 3) Better health: and 4) People and society. (Ministry of Higher Education and Science, 2017)

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MATChE is a programme carried out by Technical University of Denmark in order to support Danish industry to increase its competitiveness, growth and job creation by demonstrating how to engage in an effective transition towards Circular Economy, using a readiness assessment and strategic driver identification tool. By enabling an effective transition of Danish industry towards circular economy, it is expected that a long-term systemic and sustainable enhancement of the Danish economy and society will take place, with value maximization and increased resource productivity.

The primary customer of the project is the Danish manufacturing industry, including their upstream and downstream value chains, across numerous sectors. MATChE uses a cross- sectorial approach, which enables for exponential knowledge enhancement and experience sharing among a large variety of companies. Key words: circular economy, readiness assessment, companies Internet link: www.matche.dk Contact: [email protected]

‘Partnerskab for Offentlige Grønne Indkøb’ (Partnership for Green Public Procurement) was established in 2006 and is a collaboration between public organizations that want to do something for the environment through procurement. Currently it has 14 members, including the Ministry of Environment. The partnership is free but binding. One of the commitments is to have a publicly available procurement policy, which shows that environmental considerations are an important parameter in the procurement process. Currently the partnership has procurement targets within: Food, Transportation, Building and Construction, Sustainable wood, Cleaning, Children’s products, IT, Indoor and outdoor lighting, Catering equipment, Transport of food and textiles, Paper and printing. When establishing new targets, the energy use must be included, e.g. through life cycle assessment, assessment of total costs and / or energy consumption in operation. In 2015 17% of Danish public procurement was made by members of the partnership; and 41% of municipal procurement was made by members of the partnership. Key words: public green procurement Internet link: www.gronneindkob.dk Contact: Sekretariat for Grønne Indkøb, c/o NIRAS, Sortemosevej 19, DK-3670 Veksø, www.planmiljoe.dk, Rasmus Nielsen, T +45 60 39 44 89, E [email protected].

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CirkulærVirksomhed.dk (CircularBusiness.dk) is the Danish Environmental Protection Agency's portal providing advice and guidance for SMEs to get started or move on with circular economy. The portal aims to make it easier for particularly Danish SMEs to integrate circular economy thinking in their business for the benefit of both the economy and the environment. The portal contains tools, examples of circular companies, and links to other websites that all help inspire and challenge businesses to become more circular. The tools at CirkulærVirksomhed.dk are a development of Green21.dk, which was produced with support from the EU's LIFE+ program in collaboration between Confederation of Danish Industry (DI), the Danish Environmental Protection Agency (EPA), and Green Cross Denmark with PlanMiljø as a consultant. DI is co-financing CirkulærVirksomhed.dk. Key words: advice, guidance, SME, circular economy Internet link: https://cirkvirk.dk Contact: Miljøstyrelsen (EPA), Haraldsgade 53, 2100 København Ø, Tlf: +45 20 70 12 27, E-mail: [email protected]

DAKOFA Waste and Resource Network Denmark is an independent member-based organisation. Their task is to prepare the Danish waste and resource sector for navigating in a changing society. DAKOFA collects knowledge and experience on waste and resources from both Denmark and abroad. DAKOFA develops, organises and coordinates seminars, conferences, network meetings and workshops where learning, knowledge sharing and innovation are in focus. DAKOFA covers the entire waste and resource chain, including clean technology, product policy, waste prevention and resource efficiency. Key words: waste, resource, network Internet link: https://dakofa.com Contact: Mr. Nikola Kiørboe, International Coordinator, Telephone: +45 32646122, E-mail: [email protected]

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Green National Accounts links the economy and the environment through environmental-economic accounting. The purpose was to identify the importance of nature to the economic activities, how economic activities affect the environment, and how nature is part of Danish national wealth in the broad sense. ‘Green National Accounts for Denmark 2015-2016’ is the final outcome of a three-year project which has developed a full set of environmental- economic accounts for Denmark according to the principles of the international statistical standard System of Environmental-Economic Accounting 2012 – Central Framework. It provides a broad overview of recent Danish developments and the resulting pressures on the environment, as well as describing how stocks of natural resources and land cover/use have developed, and to what degree “green” activities are part of the economy. Key words: environmental-economic accounts Internet link: www.dst.dk/publ/GreenNatUK Contact: Statistics Denmark, Sejrøgade 11, DK-2100 Copenhagen, [email protected], Ole Gravgård Pedersen, Phone: +45 39 17 34 88

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5 References

Aasen, F., Leszczuk, J., & Pojar, S. (July 2016). Tackling Denmark’s post-crisis labour market challenges. European Union. Brussels: Publications Office of the European Union. doi:10.2765/481197 Advisory Board for Circular Economy. (2017). The Advisory Board for Circular Economy - Recommendations for the Danish Government. Copenhagen: Ministry of Environment and Food of Denmark. Retrieved April 12, 2018, from http://en.mfvm.dk/fileadmin/user_upload/MFVM/Miljoe/Cirkulaer_oekonomi/Advisory -Board-for-Circular-Economy-Report-2017-Content_Single_pages_WEB.pdf Cleantech Group. (2017). The Global Cleantech Innovation Index 2017 - Global Cleantech Innovation Programme (GCIP) Country Innovation Profiles. Cleantech Group and WWF. Retrieved April 9, 2018, from https://s3.amazonaws.com/i3.cleantech/uploads/additional_resources_pdf/17/117/GCI I_GCIP_report_2017_20nov.pdf Copenhagen Capacity. (2018, March 28). Denmark ready to fund large-scale energy storage projects. Retrieved from Copenhagen Capacity: http://www.copcap.com/newslist/2018/denmark-ready-to-fund-large-scale-energy- storage-projects DAKOFA. (2017a, February 14). Et stort plastsorteringsanlæg for 40 kommuner - prækvalificeringsmateriale offentliggjort. Retrieved from DAKOFA - Dansk Kompetencecenter for Affald og Ressourcer: https://dakofa.dk/element/plastsorteringsanlaeg-til-40-kommuner- praekvalificeringsmateriale-offentliggjort/ DAKOFA. (2017b, September 1). Regeringsudspil om cirkulær økonomi og deleøkonomi. Retrieved from DAKOFA - Waste and Resource Network Denmark: https://dakofa.dk/element/regeringsudspil-om-cirkulaer-oekonomi-og-deleoekonomi/ DAMVAD Analytics, NIRAS. (2017). Evaluering af Miljøteknologiskgisk Udviklings- og Demonstrationsprogram. Copenhagen K, Allerød: Damvad Analytics A/S, Niras A/S. Retrieved from http://ecoinnovation.dk/media/187290/evaluering-2017-rapport-final- 31-oktober-2017.pdf Danish Agency for Science, Technology and Innovation. (2016). Danish Roadmap for Research Infrastructures 2015. Copenhagen: Danish Agency for Science, Technology and Innovation. Retrieved from https://ufm.dk/en/publications/2016/files/danish-roadmap- for-research-infrastructures-2015-final.pdf Danish Agricultural Agency. (2017, December 12). Grønt Udviklings- og Demonstrationsprogram (GUDP). Retrieved from Danish Agricultural Agency: http://lbst.dk/tvaergaaende/forskning/groent-udviklings-og-demonstrationsprogram- gudp/ Danish Business Authority. (2017, October 3). Cirkulære forretningsmodeller. (M. Christensen, Ed.) Retrieved from Regional Udvikling:

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https://regionalt.erhvervsstyrelsen.dk/sites/default/files/indsatser_vedr._cirkulaer_oek onomi_i_de_fem_regioner.pdf Danish Business Authority. (n.d.). Start-up Denmark. Retrieved April 13, 2018, from Danish Business Authority: https://danishbusinessauthority.dk/start-denmark Danish Customs and Tax Administration. (2015, December 15). Tax scheme for foreign researchers and highly-paid employees. Retrieved April 07, 2015, from skat.dk: http://www.skat.dk/SKAT.aspx?oId=107035&chk=212078 Danish Economic Councils. (2018). ECONOMY AND ENVIRONMENT, 2018 - SUMMARY AND RECOMMANDATIONS. Copenhagen: Danish Economic Councils. Retrieved from https://www.dors.dk/files/media/rapporter/2018/M18/english_summary/m18_english _summary_and_recommendations.pdf Danish Energy Agency. (n.d.). Eksisterende Green Labs. Retrieved April 12, 2018, from Danish Energu Agency: https://ens.dk/ansvarsomraader/forskning-udvikling/green-labs-dk Danish EPA. (2017, February). The Danish Eco-Innovation Program. Retrieved April 11, 2018, from The Danish Eco-Innovation Program: http://eng.ecoinnovation.dk/media/182014/bekendtgoerelse-af-lov-om- mudp_eng_febr2017.pdf Danish EPA. (2017a). CIRKULÆR ØKONOMI: VIRKSOMHEDSUNDERSØGELSE. Copenhagen: Danish Environmental Protection Agency. Retrieved from http://mst.dk/media/139841/rapport- coe-virksomhedsundersoegelse.pdf Danish EPA. (2017b, October 23). Danskerne omfavner cirkulær økonomi. Retrieved from Miljøstyrelsen: http://mst.dk/media/141310/cirkulaer-oekonomi- borgerundersoegelse.pdf Danish EPA. (2017c, September 19). Eksport af vandteknologi - 2016. Retrieved from Danish Environmental Protection Agency: http://mst.dk/media/138051/eksport-af- vandteknologi-2016-6-rapport.pdf Danish EPA. (2017d, December 12). MUDP handlingsplan og årshjul for 2018. Retrieved April 7, 2018, from Ecoinnovation: http://ecoinnovation.dk/nyheder/2017/dec/mudp- handlingsplan-og-aarshjul-for-2018/ Danish EPA. (2017e, November 17). Nyt projekt skaber 60 nye huse med materialer, som kan genbruges i fremtiden. Retrieved from Danish Environmental Protection Agency: http://mst.dk/service/nyheder/nyhedsarkiv/2017/nov/nyt-projekt-skaber-60-nye-huse- med-materialer-som-kan-genbruges-i-fremtiden/ Danish EPA. (2018a, March 23). Ny national affaldsplan kommer i 2020. Retrieved from Danish Environmental Protection Agency: http://mst.dk/service/nyheder/nyhedsarkiv/2018/mar/ny-national-affaldsplan-kommer- i-2020/ Danish EPA. (2018b, January 26). Strategi og handlingsplan. Retrieved from Ecoinnovation - MUDP: http://ecoinnovation.dk/tilskud/soeger-du-tilskud-under-mudp/aktuelle- opslag/mudp-opslag-2018/

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Danish EPA. (n.d.). Ecoinnovation subsidy scheme. Retrieved April 11, 2018, from Ecoinnovation: http://eng.ecoinnovation.dk/the-danish-eco-innovation-program/ecoinnovation- subsidy-scheme/ Danish Ministry of Energy, Utilities and Climate. (2015, April 30). Exports of energy technology reach record high. Retrieved from http://www.efkm.dk/en/news/exports-of-energy- technology-reach-record-high Danish Ministry of Energy, Utilities and Climate. (2017a, April 27). Danmark eksporterede energiteknologi og energiservice for knap 84 mia. kr. i 2016. Copenhagen: Danish Ministry of Energy, Utilities and Climate. Retrieved from Dansk Energi: http://www.efkm.dk/media/8363/analyse-energiteknologieksporten.pdf Danish Ministry of Energy, Utilities and Climate. (2017b, January 26). Ny EUDP-strategi: Danske projekter skal tage afsæt i global efterspørgsel. Retrieved from Danish Ministry of Energy, Utilities and Climate: http://efkm.dk/aktuelt/nyheder/nyheder-2017/januar-2017/ny- eudp-strategi-danske-projekter-skal-tage-afsaet-i-global-efterspoergsel/ Danish Ministry of Energy, Utilities and Climate. (2018a, January 1). New Danish wind power record. Retrieved from Danish Ministry of Energy, Utilities and Climate: http://en.efkm.dk/news/news-archive/2018/jan/new-danish-wind-power-record/ Danish Ministry of Energy, Utilities and Climate. (2018b, February 22). Oil/gas exploration and drilling end on land and inland waters. Retrieved from Danish Ministry of Energy, Utilities and Climate: http://en.efkm.dk/news/news-archive/2018/feb/oil-gas/ Danish Ministry of Energy, Utilities and Climate. (2018c, April 4). Stor stigning i det grønne energiforbrug. Retrieved from Danish Ministry of Energy, Utilities and Climate: http://efkm.dk/aktuelt/nyheder/nyheder-2018/marts-2018/skabelon-til-pm-og- nyheder/ Danish Ministry of Energy, Utilities and Climate. (2018d, April 8). Strømmen i Danmark har aldrig været mere klimavenlig. Retrieved from Danish Ministry of Energy, Utilities and Climate: http://efkm.dk/aktuelt/nyheder/nyheder-2018/april-2018/stroemmen-i-danmark-har- aldrig-vaeret-mere-klimavenlig/ Danish Ministry of Industry, Business and Financial Affairs. (2017, October 9). Ny strategi skal fremme deleøkonomien i Danmark. Retrieved from Danish Ministry of Industry, Business and Financial Affairs: https://em.dk/nyheder/2017/10-09-strategi-for-deleokonomi Danish Shipping. (2016, November 3). Reducing shipping’s CO2 emissions – the Danish Shipowners’ way forward. Retrieved from Danish Shipping: https://www.danishshipping.dk/en/press/news/reducing-shippings-co2-emissions-the- danish-shipowners-way-forward DANVA. (2017). Water in Figures 2017. Danish Water and Wastewater Association (DANVA). Skanderborg: DANVA. Retrieved from https://www.danva.dk/waterinfigures2017 DANVA. (n.d.). Vandvision 2015. Retrieved from Danva: http://www.danva.dk/vandvision Det økologiske erhvervsteam. (2017). Økologi Danmark – Vækst og udvikling i hele Danmark. Copenhagen: Ministry of Environment and Food of Denmark. Retrieved from http://mfvm.dk/fileadmin/user_upload/MFVM/Landbrug/Oekologi/13538_MFVM_Okol ogirapport_A4_Forside_V5_WEB_100dpi.pdf

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DMI. (2018). Fremtidens nedbør i Danmark. (Danish Meteorological Institute (DMI)) Retrieved April 20, 2018, from DMI - Vejr, klima og hav: https://www.dmi.dk/klima/fremtidens- klima/danmark/nedboer/ Ellen MacArthur Foundation. (2015). Potential for Denmark as a circular econom - A case study from: Delivering the circular economy - a toolkit for policy makers. Cowes: Ellen MacArthur Foundation. Retrieved from http://www.ellenmacarthurfoundation.org/assets/downloads/government/20151113_ DenmarkCaseStudy.pdf European Commission. (2015). Country Report Denmark 2015. Brussels: European Commission. Retrieved from http://ec.europa.eu/europe2020/pdf/csr2015/cr2015_denmark_en.pdf European Commission. (2016). The efficient functioning of waste markets in the European Union - Legislative and Policy options. Environment. European Commission. Retrieved from http://ec.europa.eu/environment/waste/studies/pdf/waste_market_study.pdf European Commission. (2017, October). Statistics & graphs. Retrieved from Environment: http://ec.europa.eu/environment/emas/emas_registrations/statistics_graphs_en.htm European Commission. (2018a). Country Report Denmark 2018. Brussels: European Commission. Retrieved from https://ec.europa.eu/info/files/2018-european-semester-country- report-denmark_en European Commission. (2018b, March 19). Verified Technologies. Retrieved April 3, 2018, from European Commission: https://ec.europa.eu/environment/ecoap/etv/verified- technologies_en European Commission. (n.d.a). Economic forecast for Denmark. Retrieved April 10, 2018, from European Commission: https://ec.europa.eu/info/sites/info/files/economy- finance/ecfin_forecast_winter_0718_dk_en.pdf European Commission. (n.d.b). targets: statistics and indicators for Denmark. Retrieved April 13, 2018, from European Commission: https://ec.europa.eu/info/business-economy-/economic-and-fiscal-policy- coordination/eu-economic-governance-monitoring-prevention-correction/european- semester/european-semester-your-country/denmark/europe-2020-targets-statistics- and-indicators-denmark_ European Investment Bank. (2017). EIB Investment Survey 2017 - Denmark overview. Luxembourg: European Investment Bank. doi:10.2867/66002 European Investment Bank. (2018). EIB Investment Survey: Denmark has highest share of top performing companies in the EU. Retrieved April 8, 2018, from European Investment Bank: http://www.eib.org/infocentre/press/releases/all/2017/2017-379-eib- investment-survey-denmark-has-highest-share-of-top-performing-companies-in-the- eu.htm European Investment Fund. (2016, April 29). EIF and The Danish Growth Fund to launch DKK 200m Business Angels Fund in Denmark. Retrieved April 3, 2018, from European Investment Fund: http://www.eif.org/what_we_do/equity/news/2016/eif_danish_growth_fund_business _angels_fund.htm

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Eurostat. (2018a, April 20). Employment and activity by sex and age - annual data. Retrieved from Eurostat: http://ec.europa.eu/eurostat/data/database# Eurostat. (2018b, April 11). Gross domestic expenditure on R&D (GERD). Retrieved from Eurostat: http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&plugin=1&language=en& pcode=t2020_20 Eurostat. (2018c, March 27). Organisations and sites with eco-management and audit scheme (EMAS) registration. Retrieved April 3, 2018, from Eurostat: http://ec.europa.eu/eurostat/data/database Eurostat. (2018d, March 27). Organisations and sites with eco-management and audit scheme (EMAS) registration. Retrieved April 3, 2018, from Eurostat: http://ec.europa.eu/eurostat/data/database Eurostat. (2018e, April 4). Waste generated by households by year and waste category. Retrieved from Eurostat: http://ec.europa.eu/eurostat/data/database Germanwatch. (2017). Climate Change Performance Index - Results 2018. Germanwatch. Retrieved April 9, 2018, from https://germanwatch.org/en/download/20503.pdf Høgh, S. M. (2018, March 13). CEO (3R Kontor). (H. Varga, Interviewer) ICROFS. (2018, March 15). GUDP udbyder 25 mio. kr. til nyt økologisk forskningsprogram. Retrieved from ICROFS - Internationalt Center for Forskning i Økologisk Jordbrug og Fødevaresystemer: http://icrofs.dk/aktuelt/nyheder/nyhed/artikel/gudp-udbyder-25- mio-kr-til-nyt-oekologisk-forskningsprogram/ IEA. (2017). Energy Policies of IEA Countries: Denmark 2017 Review. OECD/IEA (International Energy Agency). Retrieved from http://www.iea.org/publications/freepublications/publication/EnergyPoliciesofIEACount riesDenmark2017Review.pdf Innovation Fund Denmark. (n.d.). About IFD. Retrieved from Innovationsfonden: http://innovationsfonden.dk/en/about-ifd Innovationsnetværk for Miljøteknologi. (n.d.). Innovation Network for Environmental Technologies (Inno-MT). Retrieved from Innovationsnetværk for Miljøteknologi: http://inno-mt.dk/english/ Jones, B. (2017, November 21). Denmark has committed to phasing coal by 2030. Retrieved from World Economic Forum: https://www.weforum.org/agenda/2017/11/denmark-has- committed-to-phasing-coal-by-2030 Juel, H. (2016, April 11). Project manager at Rethink Business. (H. Varga, Interviewer) Juel, H. (2018, February 8). Leader of Circular Economy Team (Central Denmark Region). (H. Varga, Interviewer) Khan, N. (2016, October 14). Denmark is alienating its needed foreign workers. Retrieved from The Local: https://www.thelocal.dk/20161014/denmark-is-shooting-itself-in-the-foot- with-treatment-of-foreign-workers KL. (2017). www.kl.dk/cases. (M. V. Vestergaard, Ed.) Retrieved March 14, 2018, from www.kl.dk: www.kl.dk/ImageVaultFiles/id_82531/cf_202/Case-_og_eksempelsamling.PDF

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Lilleholt, L. (2017, March 22). Denmark sets ambitious targets for climate and energy policy. Retrieved from Open Access Governmen: https://www.openaccessgovernment.org/denmark-targets-energy-policy/32521/ Ministry of Environment and Food of Denmark. (n.d.a). Advisory Board. Retrieved April 12, 2018, from Ministry of Environment and Food of Denmark: http://en.mfvm.dk/focus- on/circular-economy/advisory-board/ Ministry of Environment and Food of Denmark. (n.d.b). Affaldsforebyggelse: Strategi & aktiviteter. Retrieved April 24, 2018, from Miljøstyrelsen: http://mst.dk/affald- jord/affald/affaldsforebyggelse-strategi-aktiviteter/ Ministry of Finance. (2014, Juni 24). Det grønne Danmark et gear op. Retrieved from Finansministeriet: http://www.fm.dk/nyheder/pressemeddelelser/2014/06/det- groenne-danmark-et-gear-op/ Ministry of Higher Education and Science. (2017, November 7). FORSK2025 – fremtidens løfterige forskningsområder. Retrieved from Ministry of Higher Education and Science: https://ufm.dk/publikationer/2017/forsk2025-fremtidens-lofterige-forskningsomrader Mortensen, N. H. (2018, March 9). Head of Section Environmental Technology (Danish Environmental Protection Agency). (H. Varga, Interviewer) Norden. (n.d.). Green Growth the Nordic Way. Retrieved from Nordic Co-operation: http://www.norden.org/en/theme/green-growth Nordic Council of Ministers. (n.d.). Working together on green procurement in the public sector. Retrieved April 12, 2018, from Nordic Co-operation: http://www.norden.org/en/theme/former-themes/themes-2015/green-growth/the- prime-ministers-green-growth-projects/working-together-on-green-procurement-in- the-public-sector Nordic Ecolabelling. (n.d.). Nordic Swan Ecolabel. Retrieved April 3, 2018, from Nordic Ecolabelling: http://www.nordic-ecolabel.org/ Nordregio. (2016, September 25). GREEN GROWTH IN NORDIC REGIONS 50 ways to make it happen. Retrieved from Nordregio: http://www.nordregio.org/publications/green- growth-in-nordic-regions-50-ways-to-make-it-happen/ Nordregio. (n.d.a). Green growth focus areas in the surveyed Nordic regions. (a, Editor) Retrieved March 14, 2018, from Nordregio: http://www.nordregio.se/en/Maps/05-Environment- and-energy/Green-growth-focus-areas-in-the-surveyed-Nordic-regions/ Nordregio. (n.d.b). Nordic Green Growth - Location of the 50 case studies for the project Nordic Green Growth. Retrieved April 24, 2018, from Nordregio: http://www.nordregio.org/maps/nordic-green-growth/ OECD. (2014a). “Denmark”, in OECD Science, Technology and Industry Outlook 2014. Paris: OECD Publishing. doi:10.1787/sti_outlook-2014-en OECD. (2014b). Economic Survey of Denmark 2014. Paris: OECD Publishing. doi:10.1787/eco_surveys-dnk-2013-en OECD. (2015). "Denmark" in Education at a Glance 2015: OECD Indicators. Paris: OECD Publishing. doi:10.1787/eag-2015-en

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The Danish Government. (2012). Denmark – a nation of solutions. Enhanced cooperation and improved frameworks for innovation in enterprises. Copenhagen: Ministry of Science, Innovation and Higher Education. The Danish Green Investment Fund. (2015). About The Danish Green Investment Fund. Retrieved from The Danish Green Investment Fund: http://gronfond.dk/en/ The Market Development Fund. (n.d.). The Market Development Fund. Retrieved April 12, 2016, from Markedsmodningsfonden: http://markedsmodningsfonden.dk/in_english Trojaborg Julian, C. (2018, March 15). (H. Varga, Interviewer) Udbudsmedia.dk. (2018, February 7). Pris for Cirkulær økonomi i udbud. Retrieved from Udbudsmedia.dk: http://www.udbudsmedia.dk/2018/02/07/pris-cirkulaer-oekonomi- udbud/ UNFCCC. (2017, November 17). More than 20 Countries Launch Global Alliance to Phase Out Coal. Retrieved from United Nations Framework Convention on Climate Change (UNFCC): https://unfccc.int/news/more-than-20-countries-launch-global-alliance-to-phase-out- coal Vækstfonden. (2017, September 4). Benchmark 2017. Retrieved from Vækstfonden: http://www.vf.dk/nyheder-og-analyser/analyser/2017/benchmark-2017.aspx Vestas. (2018, March 27). Vestas and EDPR install wind turbine-coupled hybrid demonstrator. Retrieved from Vestas: https://www.vestas.com/en/media/company- news?n=1710929#!grid_0_content_0_Container Vindmølleindustrien. (2017). Branchestatistik 2017. DAMVAD Analytics A/S and Vindmølleindustrien. Retrieved April 5, 2018, from Vindmølleindustrien: http://ipaper.ipapercms.dk/windpower/branchestatistik/branchestatistik2017/ Windpower Monthly. (2017, October 2). Top ten turbine makers of 2017. Retrieved from Windpower Monthly: https://www.windpowermonthly.com/article/1445638/top-ten- turbine-makers-2017

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ANNEX: Policy measures addressing circular economy and eco- innovations in Denmark

Focus of policy measure (tick if relevant) Specific measure Other Group of policy Please provide reference to or brief summary of specific measures Generic Resource Energy Reduction relevant Type of policy measure measures (national, regional) Circular focus on efficiency efficiency of areas (e.g. economy eco- improveme improve emissions renewable add cells if necessary innovation nt ment incl. CO2 energy, etc.)

The Danish Green Investment Fund is an independent state loan fund with X X X X X the purpose of co-financing economically viable projects that facilitate and support the sustainable development in Denmark. The fund seeks to bridge the gap between traditional bank financing and equity capital. The fund was established as part of the agreement ‘Et Grønnere Danmark’ (“A Greener Denmark”) from 2014 (Ministry of Finance) and has a net capital of up to DKK 200 million as well as a state guaranteed lending limit of up to DKK 5 billion in capital to co-finance projects within following areas:

• Environmental • Renewable energy sources • Resource efficiency Equity/business Publicly co-funded venture http://gronfond.dk/en/om-fonden/ support capital funds

Danish Venture Capital and Private Equity Association (DVCA) is the trade X SUPPLYSIDE FOCUS organization for a wide range of investors in Denmark and focuses on Denmark to position itself even more as an attractive investment destination - nationally and globally. http://www.dvca.dk/

Vaekstfonden (The Growth Fund) is a national funding scheme that focus X X X X X on investing in companies, who put innovation and environment high on their agenda. http://vf.dk/det-hjaelper-vi-med/bliv-groennere-og-mere-effektiv.aspx

Innovationsmiljøer (Innovation Environments) provides innovative X entrepreneurs with starting a new business. The Innovation Environments

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act as an incubator for new knowledge-based businesses with origins in public or private research and development. This is done by providing professional advice and on behalf of the state to invest risk capital in the very early stage where normal market investors are reluctant. Link: https://ufm.dk/forskning-og-innovation/samspil-mellem-viden-og- innovation/viden-netvaerk-og-kommercialisering-til-virksomheder/fa- hjaelp-til-kommercialisering/innovationsmiljoer There are four approved innovation environments: Pre-Seed Innovation: http://www.preseedinnovation.dk Syddansk Teknologisk Innovation https://www.sdti.dk CAPNOVA http://www.capnova.dk Borean Innovation http://www.borean.dk/da/om-borean There are also regional initiatives: Region Syddanmark Region Sjælland Region Nordjylland Region Midtjylland Region Hovedstaden Link: https://startvaekst.virk.dk/find-stoette/risikovillig-kapital-til-forskere- og-videnbaserede-ivaerksaettere SEED Capital is an early stage venture fund in Denmark. Their investment X portfolio includes IT, life sciences and cleantech companies at the seed or pre-seed stage from Denmark and southern Sweden. The company should have a highly innovative solution and a scalable business model. SEED Capital has almost DKK two billion under management. An initial investment can range from 50,000 to 500,000 . It can follow a with subsequent rounds with a total commitment of 10 million euros over the lifetime of a company http://www.seedcapital.dk Innovationsfonden (Innovation Fund Denmark): was established as of 1 X April 2014 by bringing together research, technology development and innovation grants from the Danish Council of Strategic Research, the Danish National Advanced Technology Foundation and the Danish Council for Technology and Innovation into one new powerful foundation.

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One of its programmes InnoBooster invests in knowledge-based innovation projects of small and medium businesses, entrepreneurs and researchers. The demand is that the idea has commercial potential and innovation project is well thought out. It can be a new product, a new service or improvement of a process that increases a company's competitiveness. Depending on the needs and potential of InnoBooster project the programme may invest up to DKK 5 million. http://innovationsfonden.dk/da/investeringstype/innobooster

Dansk Vækstkapital invests in unlisted funds with a view to achieving a X competitive and double-digit return for the combined portfolio of funds. The funds must adhere to fundamental social and ethical principles in relation to their investments. For instance, it finances SEED Capital (see above) which focuses on early investments (start-up companies) and is specialised in identifying, financing and developing entrepreneurs in the fields of life science, cleantech and IT. http://www.danskvaekstkapital.dk/en/

Public guarantee funds

Miljøteknologisk Udviklings- og Demonstrationsprogram (MUDP) - The X Danish ECO-innovation Program: In connection with the action plans for eco-efficient technology, the secretariat for eco-innovation under the Danish Ministry of Environment and Food has its own funding scheme, where organizations can apply for co-financing of R&D, pilots, and concrete demonstrations of promising eco-technologies in the field of water, air, and waste, or international projects with focus on water technologies. The budget for 2015-2016 is approximately €151m. www.ecoinnovation.dk

Support for R&D Innovationsfonden (Innovation Fund Denmark): was established as of 1 X in public sector R&D funding April 2014 by bringing together research, technology development and and industry innovation grants from the Danish Council of Strategic Research, the Danish National Advanced Technology Foundation and the Danish Council for Technology and Innovation into one new powerful foundation.

The overall aim of Innovation Fund Denmark is to support the development of knowledge and technology, including advanced technology, in order to strengthen research and innovative solutions that may benefit growth and employment in Denmark. The fund works within the following 6 research areas: - Bio resources, Food and Lifestyle - Trade, Service and Society

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- Energy, Climate and Environment - Production, Materials, Digitisation and ICT - Infrastructure, Transport and Construction - Biotech, Medico and Health The fund offers three programmes: Large-Scale Projects: For substantial investments and long-term projects/partnerships where the focus is on research, technology, experimental development and market development. Innovation Fund Denmark offers co-financing for projects focusing is on research, technology, experimental development and/or market development. The fund has the following requirements for Grand Solution projects: - 2-5 years’ duration - Maximum co-financing of up to 50% (60% for SMEs). Upon successful application projects receive DKK 5-30m in co-funding - Participation from a minimum of one Danish company and one Danish public research institution - The funding from Innovationsfonden – Denmark can account for a maximum of 75% of the total project cost http://innovationsfonden.dk/en http://www.techfunding.eu/innovationsfonden-denmark

Grønt Udviklings- og DemonstrationsProgram (GUDP) - Green X Development and Demonstration Programme - is a Danish funding program, which supports development and production in the Danish food industry through co-funding of Development and Demonstration projects with a view to commercialisation of promising technologies having high market potential as well as positive environmental effects. http://nordicinnovators.com/gudp-program http://naturerhverv.dk/tilskud-selvbetjening/tilskudsguide/groent- udviklings-og-demonstrationsprogram-gudp/

Energiteknologisk Udviklings- og Demonstrationsprogram (EUDP) - The X X X X Energy Technology Development and Demonstration Program: The main objective of the EUDP is to ensure the development and demonstration of new energy technologies, which can reduce dependency on fossil energy, and which can contribute to minimising the CO2 burden and the environmental impact of energy consumption. The EUDP especially encourages submission of innovative projects within energy efficiency (construction, processes, appliances etc.) with significant commercial potential.

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http://www.ens.dk/ny-teknologi/eudp-energiteknologisk-udvikling- demonstration

Energinet.dk – issues each year funding for research into wind power, X X X biogas, fuel cells, solar energy, wave power and Smart Grids. .dk administers funding for external energy research via ForskEL and ForskVE which are both financed by PSOs (Public Service Obligations) to which all electricity consumers contribute to. They promote the development and deployment of environmentally friendly electricity generation technologies and the integration of these for the benefit of a society based on renewable energy. - ForskEL supports the development and integration of environmentally friendly power generation technologies for grid connection. - ForskVE-programme disseminates minor renewable energy technologies like biogas, photovoltaic and wave power. http://www.energinet.dk/EN/FORSKNING/Sider/default.aspx

Groen Omstillingsfond (The Green Transition Fund) supports businesses to X X become more resource efficient, develop environmentally friendly solutions and create green jobs (currently closed): https://groenomstilling.erhvervsstyrelsen.dk/groen-omstillingsfond

Groen Industrisymbiose (The Green Industrial Symbiosis program) is a X X national task force that helps companies to identify economic potentials by exchanging residual resources between two or more companies or via reprocessing companies with the aim to enhance businesses' competitiveness by increasing the utilization of waste products and reduce costs of waste disposal, as well as achieve environmental improvements (currently closed): http://groenomstilling.erhvervsstyrelsen.dk/gronindustrisymbiose

Groenne forreningsmodeller (Green business models). The program X X focusses on enhancing the ability of Danish companies to develop new business models with positive environmental effects throughout the value chain:

http://groenomstilling.erhvervsstyrelsen.dk/groenne-forretningsmodeller

Maritim Omstillingspulje (The Maritime Transition Fund) supports X X X projects, that develop or demonstrate new solutions within shipbuilding with lightweight materials, environmental retrofitting or the use of alternative fuels for ships (status ?):

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http://www.danskemaritime.dk/da/information-og- presse/nyheder/nyheder-2013/791-5-mio-ekstra-i-maritim- omstillingspulje

Markedsmodningsfonden (The Market Development Fund) helps enterprises bring their new products to the market faster. The fund can grant funding to enterprises for the testing and adapting of new products or for guarantees which gives the buyer peace of mind. The Fund is close-to- market-, enterprise-oriented and commercially focused. It seeks to assist Danish enterprises in overcoming the barriers encountered in the market development phase, e.g. by providing co-funding for the testing and adaptation of an enterprise’s innovative prototypes on-site for prospective customers or by providing a guarantee to give peace of mind to the buyer of an innovative new product. http://markedsmodningsfonden.dk/in_english

Collaborative grants

Det groenne ivaerksaetterhus (The House of Green Entrepreneurship) is X X an environment for sharing experience, receive counselling and produce/test new green products. http://dgih.dk/

R&D infrastructure At the Danish Green Labs, companies can test and demonstrate new X X X climate and energy solutions with global marked potential. http://www.ens.dk/en/policy/energy-technology/green-labs

Tax incentives for R&D and High environmental and resource as the main driver. start-ups

25 % Tax Scheme: Taxation of the Salaries of Well-paid Foreigners and Foreign Researchers. In 1992 a special taxation scheme was introduced for researchers and key employees who take up residence in Denmark for a limited period of time. Effective as from 13 May 2000 there has been a Fiscal measures revision of that scheme. The rules are contained in section 48 E of the Tax incentives for R&D Danish Act on Taxation at the Source. The Scheme implies that well-paid personnel employees and researchers recruited abroad have access, subject to a number of conditions, to choose - for a period of not more than 36 months - taxation at the rate of 25% of the remuneration with no deductions - instead of the normal income tax. http://www.taxindenmark.com/article.34.html

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Innovation Management. The course gives an insight into the principles and methods used to implement both incremental and radical changes Tailored training courses for that are necessary for your organization's innovation efforts create value. companies, entrepreneurs http://www.teknologisk.dk/ydelser/ideudvikling-og- innovation/ideudvikling-og-innovation/22709?cms.query=innovation

Startvaekst: is a fast short-cut to comprehensive and useful information and X advice for entrepreneurs and established enterprises with growth potential. This portal is operated by the Danish Business Authority in collaboration with the regional business link centres (“Vaeksthus”). http://startvaekst.dk

Vaekstguiden (Guide to Growth) provides a general view of all public-sector X schemes aimed at generating enterprise growth and development. The website “Vaekstguiden.dk” is the result of a collaborative effort involving Denmark’s state and regional governments and the EU. https://startvaekst.virk.dk/find-stoette

Proof of Concept. The policy measure aims to strengthen the further development and documentation of inventions made by researchers in public research institutions. The funding shall be used to allow these Advise/consulting for start- researchers to concentrate on the further development of their inventions ups, companies, and to reduce the education and research burden for a period. Education, entrepreneurs training and http://fivu.dk/en/research-and-innovation/funding-programmes-for- mobility research-and-innovation/find-danish-funding-programmes/collaboration- between-research-and-innovation/innovation- vouchers?set_language=en&cl=en

Innovationsfonden (Innovation Fund Denmark): The Entrepreneurial Pilot X programme is an opportunity for new graduates wanting to develop their innovative business idea. The scheme is designed to help newly graduated talents inspiring to become innovative entrepreneurs and aims to strengthen knowledge-based entrepreneurship – short and long-term. The programme offers personal mentoring and a monthly grant of 14,473 DKK for up to 12 months. http://innovationsfonden.dk/en/investment/entrepreneurial-pilot

Innovationsfonden (Innovation Fund Denmark). Industrial PhD X programme is a three-year industrially focused research project and PhD education which is carried out in a collaboration between a company, an Placement schemes for Industrial PhD candidate and a university. An Industrial PhD student is students employed in the private sector company and enrolled at the university. The private sector company applies for funding from Innovation Fund Denmark for the project, and the student is hired by the company and receives a wage during the entire Industrial PhD project. The student shares

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her/his working time between the company and the university, and spends all the work time on the Industrial PhD project. http://innovationsfonden.dk/en/application/erhvervsphd

Support for R&D worker’s recruitments

Danish Energy Solutions (DES) is a Danish cluster organisation co-financed X by EU funds and its corporate members. They are the international division of Lean Energy DES facilitates and negotiates tailor-made financial solutions including supplier credits guaranteed by the Danish Export Credit Foundation. Together with its partner companies, they use financial tools to finance energy savings projects in the Denmark. http://energysolutions.dk New Nationalt testcenter for vandteknologi og klimatilpasning (National X X centre for test of water technology and climate adaption) is a network of existing facilities complemented by a mobile testing facility to promote Danish water technology. http://www.teknologisk.dk/ydelser/nyt-nationalt-testcenter-for- vandteknologi-og-klimatilpasning-ser-dagens-lys/33360

CLEAN is Denmark's green energy and environment cluster through projects X X X X X and collaborations create green growth and innovation, both nationally and Competence centres, internationally. CLEAN is the focal point that provides knowledge, talent and Networks and clusters, science-technology collaboration between large and small businesses, government and partnerships parks institutions - and here sounds sector's collective voice nationally and globally. http://cleancluster.dk Scion DTU – Science and Technology Park offers high-tech facilities, X business support and network and innovation. It has something called the “Green Entrepreneur House” which includes physical facilities, such as incubation, access to the prototype workshop (the FabLab) and to testing- and demonstration-facilities. In also offers guidance and competency- development, access to knowledge resources, mentors and the opportunity to work together with established and successful companies. Scion DTU also has an innovation cluster in cooperation with Medico Innovation and Cleantech Innovation. Part of the networks’ objective is to create specific public-private innovation cooperation and international exposure. http://www.sciondtu.com/

CAPNOVA – is an investment and development company that provides X capital (state, regional and private), business expertise and a network, to

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turn innovates ideas into successful businesses. Amongst companies supported are also in the field of cleantech. http://www.capnova.dk/

Energy Cluster Fionia - is a business development initiative by the X X development agency for the Danish sub-region of Fyn – Udvikling Odense. It offers general cluster support and services and project development support to companies and other partners within the energy sector – primarily in the region of Southern Denmark. Special thematic focus areas are: and CHP; energy systems / smart grid / integrated resource planning for energy production and supply; energy efficiency especial in production systems (i.e. green-house production), phasing in energy from biomass and other sustainable sources (wind, sun). http://www.lorc.dk/affiliation/energy-cluster-fionia

LORC is a non-profit and independent commercial foundation that was X founded in 2009 by the major players in the offshore renewables sector. The aim is to improve product reliability and consequently lower the Cost of Energy extracted from green offshore sources. http://www.lorc.dk/

Lean energy cluster is a national cluster organisation. We support Cleantech X business development in the field of energy and climate technology. We work to promote energy efficiency based on sustainability throughout the value chain of the entire energy system. Our focus is therefore on developing technologies and solutions in the fields of energy efficiency and intelligent energy systems. http://energysolutions.dk/lean-energy-cluster/

The Alliance for Offshore - Renewables: Focus areas for Offshoreenergy.dk X – Renewable - is offshore wind, the offshore maritime area and wave energy. http://www.offshoreenergy.dk/renewables/renewables.aspx

Green Tech Park - is an energy park with integrated micro energy X infrastructure for electricity, district heating and gas. The park has test and demonstration facilities for products and services for the future Smart Grid system with all platforms connected to the Green Tech Lab. http://www.greentechcenter.dk/uk.aspx

Centres of Excellence is an initiative of the Danish National Research X Foundation (DNRF) and supports Danish basic research regardless of subject. The activities of the Foundation are regulated by law, and the

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purpose of the Foundation is to support the development of unique Danish research. It is the position of the board that the best Danish basic research environments should have a possibility for extra support when and if expertise, creativity and the right constellation of people is present in combination. http://www.tekniq.dk/Medlemsraadgivning/El-%20og%20vvs- uddannelserne/Laerlingeuddannelserne/CentreOfExcellence.aspx

Nationalt Vandtestcenter. The platform identifies needs, opportunities and X X challenges for Danish research, innovation and technology development in the water sector. http://vandtestcenter.dk/viden-om-vandtest/organisationer-i- vandsektoren/

BioRefining Alliance recommends that bio-economy be made a new priority X X X area for Denmark and that a political action plan be adopted on the basis of 19 recommendations in the areas of markets, bioresources, demonstration and R&D. http://biorefiningalliance.com/

Inno-MT is a triple helix partnership with the participation of private X X X X companies and organizations, research, training and knowledge institutions as well as public authorities, public undertakings and other public organizations Inno-MT focuses on technologies, which help solve key social challenges in Technology platforms and the field of environmental technology. The network has four primary focus innovation networks areas: 1. Soil resources and nutrient cycling 2. Clean air technology 3. Efficient use of resources: 4. Water treatment and water supply http://inno-mt.dk/english/

TEST - The programme supports market maturation of sustainable solutions X X in construction that are technically fully developed or almost fully developed, but need be approval and documentation. The program is temporarily closed but is expected to start up again in the spring/summer 2016. TEST is a Realdania initiative. www.test-din-baeredygtige-loesning.dk www.realdania.org

Godkendt Teknologisk Service (GTS) – Advanced Technology Group. The X GTS institutes offer knowledge, technology and consultancy, co-operation on technological and market-related innovation, testing, optimisation,

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quality assurance, certifications and benchmarking - all of which are intended to contribute to enhancing the international competitiveness of the business sector and benefit society in general. http://gts-net.dk

Innovationsfonden (Innovation Fund Denmark): Co-financed projects with X several participating countries. Innovation Fund Denmark participates in several international programmes, where evaluation is done by international expert panels. The final investment, however, must be approved by Innovation Fund Denmark within the budget limits allocated to joint projects. Examples of this are the EU-based ERA-NETs, JPIs, JTIs or the Eurostars and the BONUS programme. International networks and bilateral Co-operations with emerging countries. Innovation Fund Denmark is engaged in several bilateral and multilateral collaborations with other countries. Examples of this can be bilateral collaborations with emerging countries about joined calls within prioritised areas or about international networks such as EUREKA. Foreign partners in projects financed by Innovation Fund Denmark Foreign partners can be invited to participate in projects funded by Innovation Fund Denmark. Investment from Innovation Fund Denmark may be used to finance both Danish and foreign partners in a project if the foreign partner contributes with new knowledge and thereby ensure increased growth and employment in Denmark. Special rules are set up for Innovation Fund Denmark’s financing of foreign partner I Danish projects. http://innovationsfonden.dk/en/investment/international-collaborationst

Ministry of Environment and Food - Partnerships in Environmental X Technology Included in Program. The authorities support the establishment of partnerships, by e.g. identifying areas in which the partnership model could have particular potential, by bringing relevant actors into play, and by providing financial support for the partnerships' secretariats. Moreover, as participants in partnerships, authorities contribute with knowledge about the future need for environmental technology solutions. Foresight and common http://eng.ecoinnovation.dk/the-danish-eco-innovation- vision building program/publicprivate-partnerships/

Innovation Packages (international cooperation). It is offered to small and medium sized Danish companies wishing to seek new knowledge, technology or business partners in leading foreign innovation environments. Innovation Package offered by the Danish Innovation Centres providing tailored advice to the individual company. Innovation Package includes 25 hours of counselling in a selected market and provides

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50% subsidy to do so. There is a limit of grants to four innovation packages per market. https://indberet.virk.dk/myndigheder/stat/TC/Innovationspakke-0

Danish Water Forum (DWF) is a network of Danish water organizations aiming at highlighting Danish water expertise and knowledge and facilitating concerted actions. DWF represents: contractors and manufacturers; water companies and consultants; research institutions; and government authorities and NGOs. The activities of DWF are: to promote export of innovative Danish solutions for the water sector, to strengthening cooperation in the Danish water sector, to enhance the visibility of Danish water expertise linking water networks in North and South. http://www.danishwaterforum.dk/

Regional Innovation Agents. Experts from nine regional centres offer innovation checks to SMEs of the regions in question. http://www.innovationstjek.dk/

State of Green is a public-private partnership founded by the Danish X Government, the Confederation of Danish Industry, the Danish Energy Market intelligence and Association, the Danish Agriculture & Food Council and the Danish Wind other forms of information Industry Association. As the official green brand for Denmark, State of Green sharing gathers all leading players in the fields of energy, climate, water and environment and fosters relations with international stakeholders interested in learning from the Danish experience. http://www.stateofgreen.com/en

Nordic Innovation Centre. Analysis and overview of Nordic venture capital X and innovation. http://www.nordicinnovation.org/

Overview of Environmental Laws in DK. The Danish Environmental X

Protection Agency provides an overview of laws and regulations connected to the environmental, including areas like production and consumption http://mst.dk/service/lovstof/danske-miljoelove/ Regulations and Regulations, targets, cap & standards trade schemes Danish Industries. The association of Danish Industries, which supports X promotion of Danish exports, identification of trade, and counselling to

Danish companies. DEMAND SIDE FOCUS DEMAND http://di.dk/VIRKSOMHED/MILJOE/Pages/miljoe%20og%20energi.aspx

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Fees and labels on recyclable materials. Management and overview of fees X and labels on products that needs to be recycles, such as plastic and glass materials. https://www.dansk-retursystem.dk/dk/

Danish Standards provides advice and consultancy in the use of Danish and X international standards. Based on your company's profile and needs, Danish Standards can be an active partner throughout the process - from analysis to implementation and follow-up. http://www.ds.dk/en/

Performance standards, Eco-label Denmark. Management of the official eco-labels in Denmark, X labelling, certification e.g. “blomsten” and “svanen”, with information to producers and consumers on how to get or react to labels, as well as an overview of labelled products. http://www.ecolabel.dk/

Green Building Council Denmark has established a Danish certification X X within sustainability: DGNB Denmark. A sustainable certification scheme provides the necessary framework and criteria for the construction and property industry concerning new construction, rebuilding and improvement of existing properties in a sustainable manner. http://www.dk-gbc.dk/english.aspx

Forum for Bæredygtige Indkøb (Forum for Sustainable Procurement) – X www.ansvarligeindkob.dk - is an initiative under the Ministry of Environment and Food. The purpose of the forum is to promote environmentally conscious and responsible procurement among professional buyers in both public and private companies. http://www.ansvarligeindkob.dk/

Public “Green“ public procurement Partnerskab for Offentlige Grønne Indkøb’ (Partnership for Green Public X procurement of goods and services Procurement) was established in 2006 and is a collaboration between public organizations that want to do something for the environment through procurement. Currently it has 14 members, including the Ministry of Environment. The partnership is free but binding. http://www.gronneindkob.dk

Markedsmodningsfonden (The Market Development Fund) helps X enterprises bring their new products to the market faster and makes it

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easier for public-sector institutions to obtain innovative solutions. http://markedsmodningsfonden.dk/in_english

R&D procurement

Pre-commercial procurement

Act on technology transfer on Public Research Institutions. The act allows X X for universities and sectorial research institutes to establish a limited company responsible for the transfer of knowledge/technology to the private sector. These companies shall support commercialisation of intellectual property rights and they shall be co-owners of science parks, incubators and spin-off companies. http://ufm.dk/lovstof/gaeldende-love-og-regler Universities play an important role in adaptation of new technologies Advisory support for through research, identification, and testing. A few links on the area are technology adopters http://www.au.dk/om/profil/strategi/

http://www.dtu.dk/english/Collaboration/Industrial_Collaboration/Resear Technology ch-collaboration-with-businesses Transfer http://dkuni.dk/english http://www.regionh.dk/menu/Forskning/Raadgivning_til_forskere/

Food processing. Support for technologies improving the processing of X Financial or fiscal support for food, including quality and efficiency. technology adopters http://www.dtu.dk/english/Collaboration/Industrial_Collaboration/Resear (e.g. grants for purchasing ch-collaboration-with-businesses new technology) http://www.skm.dk/skattetal/statistik/generel-skattestatistik/skattetryk- for-groenne-afgifter-1970-2014

Greening Private Houses. Danish houses may now be more environmentally X X and climate friendly thanks to “BoligJobordning”, which makes it possible to Tax incentives for consumers implement green roofs solar panels, creating combo heaters, geothermal Support of (e.g. for purchasing heat, air to water heating and photovoltaic - all with a tax deduction on private demand environmentally efficient expenses for . products) http://www.bolig-job-ordning.dk/Green tax on Automobiles. Higher tax is applied on cars consumption of fuel.

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http://www.skm.dk/skattetal/satser/satser-og- beloebsgraenser/braendstofforbrugsafgiftsloven/ Progressive income taxes to the government have decreased over the years while the tax basis has widened and labour market contributions and green taxes on environmentally harmful consumption have become more important. http://www.skm.dk/english/facts-and-figures/the-tax-structure/

Green tax on Automobiles. Higher tax is applied on cars consumption of Tax reductions for products fuel. and services (e.g. VAT http://www.skm.dk/skattetal/satser/satser-og- reductions) beloebsgraenser/braendstofforbrugsafgiftsloven/

Support to install solar cell panels. On 11 February 2015 a new legislation on increased support for PV came into force after being approved by the EU Commission. Energinet.dk, approves or rejects the application. Demand subsidies (e.g. eco- vouchers, consumer http://www.ens.dk/undergrund-forsyning/el-naturgas- subsidies) varmeforsyning/elforsyning/elproduktion/stotte-vedvarende-energi-3 http://solcelleforening.dk/en/legislation/

Information on environmental laws and standards for public citizens: X “borger”, or in English “citizen”, is the national website where the public can seek information on laws and regulations, and adjust their own public obligations. This website includes information on environmental awareness. https://www.borger.dk/Sider/default.aspx

Awareness raising and Bedreinnovation.dk (Better Innovation). A comprehensive approach to the X information provision development of new technological services for the benefit of Danish industry and Danish society, which is concluded by the Council for Technology and Innovation and the 9 Approved Technological Service Institutes for the period 2013-2015 with a total budget of DKK 850 million. There are currently 67 activities amongst the nine service institutes. http://www.bedreinnovation.dk/

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About the Eco-Innovation Observatory (EIO)

The Eco-Innovation Observatory (EIO) is the initiative financed by the European Commission’s Directorate- General for the Environment. The Observatory is developing an integrated information source and a series of analyses on eco-innovation trends and markets, targeting business, innovation service providers, policy makers as well as researchers and analysts.

Visit EIO and DG ENV EcoAP website and register to get access to more information and to access all EIO resources. www.eco-innovation.eu ec.europa.eu/environment/ecoap