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DI’s 2030 plan – Together we create green growth

DI’s 2030 Plan – Together we create green growth

DI’s 2030 Plan – Together we create green growth – will accelerate the green transition and increase growth for the benefit of all Danes.

If politicians and policy makers follow all the proposals in DI’s plan, we can:

Increase Denmark’s wealth by at least 110 billion DKK in 2030
Create an additional 120,000 jobs in private companies
Reduce Denmark’s CO₂ emissions by at least 65 percent

DI shares the government’s ambition to reduce CO₂ emissions by 70 percent in 2030. Achieving this goal requires massive investments in research and development of new solutions that are yet to be identified. DI’s plan is the first comprehensive plan for how to achieve a reduction of at least 65 percent.

The plan includes more than 150 specific policy initiatives, all of which are fully financed. Together they will increase the projected average economic growth from 2019 to 2030 from 1.3 percent to 1.7 percent – and ensure a balanced government budget in 2030.

Priorities in DI’s 2030 Plan

DI’s 2030 Plan is fully funded and balances public budgets by 2030. The plan almost doubles the fiscal leeway and allows us to invest more in our common future.

The largest challenge the world is facing is the climate crisis. Solving it is a fundamental task, and Denmark must lead the way for other countries. DI therefore devotes 16 billion DKK to initiatives that reduce greenhouse gas emissions.

DI also devotes 12 billion DKK to future investments consisting of public investments in more research, better education, digitalization and infrastructure.

In addition, DI devotes 26 billion DKK to make the companies more competitive. This corresponds to a reduction of the tax burden from 44.7 to 42.7 percent of GDP. Denmark will still be one of the countries in the world where we pay the most in taxes.

At the same time, DI’s 2030 Plan devotes 36 billion DKK to public welfare. The money can ensure that spending in all parts of the public sector at least follows the demographic trend.

A large share of the funding in DI’s plan comes from the fiscal leeway, which is estimated to 49 billion DKK.

In addition, getting more people into work through labour market reforms as well as reforms of the study benefit scheme (SU) will contribute 22 billion DKK. Furthermore, more effective solutions in the public sector will add 20 billion DKK.

Priorities in DI’s 2030 Plan. Effect on the government primary balance in 2030. Billion DKK, 2019-level

Note:

1) Including more funding in green R&D.
2) Increased spending on R&D (not including the climate funding), education, infrastructure and digitization.
3) Not including a fund reserved to national defence until 2025.
4) More foreign labour, less on public benefits and effect of SU proposal and a small amount from increased productivity.

Source: Ministry of Finance and DI

Strategies strands of action

We must trade with the world and make it more sustainable

Denmark gains from trade and cooperation with other countries.

We need a strong EU that facilitates well-regulated global free trade and takes the lead in fighting climate change.

Danish companies should provide the best solutions to global challenges stemming from climate change, urbanization, scarcity of foods and resources, growing demands for healthcare services, and the increasing number of elderly people in the global population.

DI has set the following specific targets for 2030:

Exports as a share of GDP must be increased by at least 5 percentage points via new initiatives.
Denmark must recycle 60 percent of household waste and 80 percent of industrial waste.

We must invest in the future and collaborate on welfare

Innovative companies and employees form the basis of the wealth of all Danes, as well as for our common welfare.

Therefore, Denmark shall invest more in research, education, digitalization and infrastructure. And we shall create the future public sector in a cooperation between public and private companies.

DI has set the following specific targets for 2030:

Public expenditure on research, education and investment in infrastructure and digitalization must be at least 18½ percent of the primary expenses.
Modernization, optimization and digitalization of the public sector must release up to at least 20 billion. DKK.
There must be at least 10,000 additional people who have completed a STEM education than today.

We must have the best labour market of the world

In Denmark, we have an exceptionally well-working and flexible labour market in which employees and employers take an extensive common responsibility and have a high degree of confidence in each other.

For the benefit of both the individual and the society, we shall continue the development of the Danish Model, we shall educate our young and adults for good jobs and we shall include even more people in the job market community.

DI has set the following specific targets for 2030:

Reforms and political initiatives must increase the supply of at least 85,000 full-time workers.

We must be competitive

Denmark should be the best country in the world to operate a business in.

One precondition for that is that we keep our taxes and other politically determined costs on a par with those of our competitors.

DI has set the following specific targets for 2030:

Reforms and political initiatives must boost productivity and thus prosperity by at least 40 billion DKK.
Public consumption expenditure must amount to a maximum of 23½ percent of GDP.
Tax policy measures must reduce the tax burden by at least 2 percent of GDP.