US/DK: Renewed commitment provides green export opportunities

Strong bilateral ties and a renewed commitment to combat climate change

The US and Denmark have a strong trade relationship and a common interest in combating climate change. With renewed commitment from the Biden administration to tackle climate change, the US aims to achieve a 50% GHG reduction from 2005 levels in 2030. In addition, the US aims for net zero emissions by 2050.

Second largest GHG emitter with a long way to net zero

Currently, the United States is the second most polluting nation in the world, and historically it has been the world’s largest emitter of GHG. Additionally, the green transition in the US is less broad-based than in Denmark. It will therefore be necessary for the US to quickly accelerate efforts in mitigating climate change to achieve the set goals. However, as part of the recently approved Inflation Reduction Act, 368 billion USD will be devoted to climate investments.

Partnerships on climate change and energy technology

Denmark and the US have already signed several collaboration agreements on climate change mitigation. The agreements focus on co-operation on offshore wind power, energy efficiency, energy systems, knowledge exchanges within CCS, green hydrogen, and Power-to-X.

The US is Denmark's biggest export market and one of the biggest importers of Danish energy technology

The US is Denmark's biggest export market. In recent years, the US has been the third largest export market for Danish energy technology with an average annual export of 6.2 bill. DKK (approx. 1 bill. USD). The US is hereby already a major importer of Danish energy technology, and it is likely to become even bigger in the future. Danish firms also have a high level of engagement in the US, making investments and manufacturing locally.