EIFO is an independent public company under the Danish Ministry of Industry, Business and Financial Affairs (EM). It must therefore follow the political guidelines of the Danish government, e.g. regarding climate policy. In 2020, Denmark passed key pieces of climate legislation: i) the Climate Act, committing to 70% emission reductions by 2030 (compared to 1990; KEFM, 2021a); ii) the North Sea Agreement, pledging to end O&G production in the North Sea by 2050 (KEFM, 2020) and iii) the long-term strategy for global climate action (UM, 2020). These legislative measures underscore Denmark's climate ambitions and its international pioneering role in the green transition.
Overarching national climate policies and strategies have implications for EIFO, offering guidance and indicating needed ambition. The Climate Act does not mention exports explicitly but emphasises that Denmark must be a pioneer in international climate action and mandates reporting on the international effects of Denmark’s climate efforts. The Climate Act requires the Danish Government to prepare an annual climate programme – including an assessment of whether current policies are consistent with official targets. The Climate Act further mandates setting a new national climate target with a 10-year perspective every five years. In 2021, the Act was updated with targets for 2025, mandating 50–54% reductions (KEFM, 2021a). In 2023, the Danish Government brought forward its net-zero target to 2045 (UM, 2023). This data is also EIFO’s company- and portfolio-wide target to achieve climate neutrality.
In contrast to the Danish Climate Act, the Danish Government’s Long-Term Strategy for Global Climate Action (UM, 2020) demonstrates a stronger understanding of the role of ‘green’ exports due to its focus on global emission reductions. Among others, the strategy highlights Bilateral Strategic Sector Cooperation with public authorities in other countries and export promotion initiatives as a crucial, future-oriented opportunity. Although the strategy highlights Denmark’s ambition to shift ‘brown’ to ‘green’ financial flows, in line with Article 2.1.c of the Paris Agreement, it does not mention any quantitative target – a key shortcoming. EIFO, as a state-owned enterprise (SOE), plays a crucial role in promoting green exports as envisioned in the strategy, even though it is not explicitly mentioned (UM, 2020).
Text Box 2 lists further climate-related commitments and legislation relevant to EIFO. The list demonstrates Denmark’s holistic policy landscape underlining export support and internationalisation efforts for climate action. However, the policy statements on 'green' export promotion efforts (including those for climate adaptation and resilience) lack specificity, as there are nearly no quantitative targets (UM, 2020).