From the moment Denmark's new Prime Minister Helle Thorning-Schmidt published her government's policy programme and presented her cabinet, Danes have been discussing whether the new government is red, pink or light blue. Since the narrow victory on 15 September, the Social Democrats (S) and the Socialist People's Party (SF) in particular have had to make solid concessions to the third party in government, the Social Liberal Party (R), on economic policies.

The debate about the two parties' shift off course has given the government the popular nickname "breach of promise government" and resulted in a downturn for S and SF in the opinion polls.

When historians pass sentence one day, they may show that the government is actually green. In climate and energy policies their critics cannot complain about breach of promise. On the contrary, all three of the parties in government are determined to live up to their election campaign promises and write history with a major green transition.

Sky-high ambitions

That the goals were ambitious was made clear at the presentation of the government policy programme - "One Denmark, standing together" - at the beginning of October. (Find the document on www.stm.dk).

From day one the Social Democrats, Socialist People's Party and the Social Liberals were stalwart in their belief that Denmark should take a quantum leap to become a green pioneering country. In the government document it was made clear that Denmark must free itself from fossil fuels, invest heavily in the expansion of sustainable energy and ensure high energy efficiency.

On Friday 25 November these ambitions became concrete. The Minister of Climate, Energy and Building, Martin Lidegaard, presented “Our Energy”, which describes in more detail the way towards a green growth economy and a fundamental change of the energy system to 100 per cent sustainable energy by 2050.

Global lead

The plan is based on the former right-wing government's initiative: “Energy Strategy 2050”. But the bar has been raised significantly.

The goal is that by 2020 the initiatives will lead to extensive reductions in energy consumption, making it possible for half of the country’s electricity consumption to be covered by wind power. At the same time Denmark will be well on the way to phasing out coal from Danish power plants by 2030. And by 2035, all electricity and heating will be generated using renewable sources.

At the presentation Martin Lidegaard said that with this plan the government will help to solve three of the world's major crises - namely the economic crisis, the climate crisis and the resource crisis - which would mean, amongst other things, that the huge demand for oil would hit the Danish economy hard in a few years if there is no change.

The Minister stressed that investing in green energy can position Denmark as a global leader in developing climate-friendly technology. If Danish companies can capitalise on these opportunities, the country will benefit in the long run, he reaffirmed.

Finally he noted that the International Energy Agency has just published a report warning that without a change in national energy policies, the global temperature will rise by six degrees by the end of this century. With dramatic consequences for the planet.  

"The initiatives in the government’s strategy will slash Denmark’s greenhouse gas emissions by 35 per cent by 2020, compared with 1990 levels. This would send a strong signal to the world that establishing a green energy network is realistic and affordable in the long term," said Lidegaard in his press release for the launch of the new energy strategy.

New taxes

At the press conference the Minister had to admit that a transition to a green economy will be expensive. But he compared this price to paying an insurance policy.

"These are costly investments, but compared with the cost of what we’re insuring ourselves against, the amount is relatively minimal. It’s a good investment if energy prices increase more than we forecast – and there is a significant risk of that happening," said the Minister.

"Our Energy” calls for spending 5.6 billion kroner by 2020. New expenses will cover, amongst other things, investments in improved energy efficiency and expanding the generation of renewable energy. Not included in that figure are the billions of kroner businesses and households are projected to invest in renewable energy and new and more efficient technologies.

The decreased consumption that results from these investments will lead to lower overall fuel costs. By 2020, the savings are projected to amount to 6.9 billion kroner, but could be even larger if the cost of fossil fuels increases.

The strategy is expected to create 900 additional jobs in 2012, and 5,500 more in 2013. (Read more about this strategy on the Ministry of Climate, Energy and Building's website www.kemin.dk and on the Danish Energy Agency's website www.ens.dk)

Complex negotiations

Based on this proposal the government has invited the parliamentary parties to negotiations on a new energy agreement which will run until 2020. The parties are agreed on the direction - but there will be fights about the costs of the transition.

The government is already under pressure for having raised taxes on unhealthy and fatty foods, cigarettes and spirits. Even though Danish voters are generally "green", they are feeling the credit crunch, and many will be sceptical about it being even more expensive to turn on the light and turn up the radiator.

For Danish households, the additional costs for the strategy, according to calculations, will be on average 1,700 kroner in 2020 and the debate on the increased costs will trouble the government. In addition, industry is worried about the increased costs.

Denmark's largest business organisation, the Confederation of Danish Industry (DI), has initially reacted favourably to the strategy, because DI believes that green transition is necessary and sees great growth potential. However, Director of DI Tine Roed underlines that the high ambitions must go hand in hand with consideration for Denmark's competitiveness.

"We must find a course that does not weaken our competitive position further and thus cost growth and jobs in Denmark", says DI.

It is crucial for business that there is broad political agreement which creates a long-term framework. But the negotiations will be complex. The right-wing opposition parties fear that the transition will be too expensive.

"We are not ready for more taxes, so there will be a fight about money", says Thomas Danielsen from the largest right-wing opposition party, Venstre. "

The Energy spokesman for Liberal Alliance, Villum Christensen, is even more critical.

"With this plan the government has set up expensive dream goals. It feels good and is politically correct, but it won't help the climate of our planet one bit and will give a competitive advantage to foreign countries."

Despite opposition, the government will not deviate from the new line, which points backwards and forwards at the same time. Back to when the forceful Social Democratic Minister for the Environment and Energy, Svend Auken, put Denmark on the world map as a green nation and forward to a time when the countries of the world will be competing fiercely for new green technology.

The views expressed are those of the author.