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Denmark´s second National Communication on Climate Change

9.1 Financial resources and transfer of technology and know-how

As a consequence of the increasingly global nature of environmental problems, Denmark has intensified action at the international level in recent years in order to meet global challenges.

At the regional level, the EU is the most important forum addressing global environmental issues. One of the overall objectives of the Maastricht Treaty is to promote sustainable and non-inflationary growth while according due consideration to the environment. To complement cooperation in the environmental field within the EU an international dimension has been added to facilitate active involvement by the Union in addressing and solving the environmental problems.

At the Nordic level, cooperation has been long standing based on shared objectives and visions. The Nordic countries are actively involved in solving regional and global environmental problems.

The climate problem is to be seen in the context of a broader global challenge. The populations use of the earth's store of natural resources is still increasing. Curbing these trends will require a coordinated international strategy.

The awareness of this global challenge and the transboundary nature of the environment problems were reflected in the Danish Government's 1988 Plan of Action for Environment and Development in Denmarks development assistance. As a consequence, a number of environmental sector strategies have been developed covering fisheries, energy, agriculture, forestry, agroforestry, water, health and industry.

The United Nations target of 0.7% of GNP in Overseas Development Aid (ODA) has long been fulfilled by Denmark and the Danish Government has maintained ODA at 1% of GNP since 1992.

Efforts to incorporate environmental objectives into the development assistance administered by DANIDA - the Danish International Development Assistance - were further strengthened during preparation for and follow-up on the 1992 United Nations Conference on Environment and Development in Rio de Janeiro (UNCED). Guidelines have been issued for environmental impact assessment of projects in all sectors. Following a parliamentary resolution in 1992, the Danish Environment and Disaster Relief Facility (EDRF) was established as an additional budgetary allocation to supplement Danish development assistance. This allocation will increase gradually to 0.5% of GNP by 2002. Half of the EDRF is allocated evenly between environmental assistance to Central and to Eastern Europe and developing countries, the assistance to the latter being administered jointly by DANIDA and DANCED - the Danish Cooperation for Environment and Development.

Development assistance (DANIDA)

Denmark's environment-related assistance efforts are expressed primarily by the incorporation of environmental concerns as one of the crosscutting themes of Danish bilateral assistance on par with Women in Development and Human Rights and Democratisation. In addition, a DKK 135 million (USD 24.1 million) multilateral budgetary allocation is devoted to global environmental activities. UNEP and GEF are major recipients. Other recipients include a considerable number of innovative and catalytic pilot activities, a large number of which focus on implementing measures dealing with the Climate Change Convention, the Convention on Biodiversity and the recent UN Convention to Combat Desertification.

Apart from those programmes and projects in bilateral development assistance in which the prime objective is the environment, it is difficult to quantify the resources devoted to environmental protection and environmentally sustainable development. A broad assessment indicates that 15 - 20% of total bilateral development assistance aims at important environmental objectives in the areas of 1) sustainable management of natural resources, 2) containment of water, air and soil pollution, and 3) sustainable energy use. Environmental strategies have been prepared for six thematic sectors and five main recipient countries.

Total bilateral development aid in the years 1994, 1995 and 1996 is summarized in Table 9.1.

Table 9.1. Total danish bilateral development Aid.

Environment-related development activities in developing countries supported by Denmark include sustainable utilisation of land and natural resources and the protection of water catchment areas. Other measures cover the development of environmental expertise and administrative capacity, reducing air and water pollution, forest management, renewable energy, and making energy production and waste treatment more efficient. In conjunction with aid to the private sector, support has been offered for the transfer of relevant environmental technology to small companies.

Denmarks total contributions to multilateral institutions in the years 1994, 1995 and 1996 are summarized in the Table 9.2. The amounts quoted include "new and additional" financial contributions as it is not possible to separate these contributions.

Table 9.2. Financial contributions to the operating entity or entities of the financial mechanism, regional and other multilateral institutions and programmes.

In addition to the contributions shown in Table 9.2 DANIDA has provided financial support for issues related to Climate Change as shown in Table 9.3.

As with Table 9.2, it is not possible to single out "new and additional financial contributions" and these are therefore included in the amounts shown.

EDRF Environmental assistance (DANCED and DANIDA)

DANCED was established under the Ministry of Environment and Energy in 1994 to provide Danish environmental assistance to middle income developing countries funded under the EDRF. This assistance is provided in cooperation with DANIDA's EDRF-funded environmental assistance to least developed countries, and is directed towards two regions: Southeast Asia and Southern Africa. The overall objective of Danish environmental assistance is to contribute to restoring the global environment in accordance with the recommendations of the 1992 UNCED conference in Rio de Janeiro. Initiatives are directed towards:

• Promotion of environmentally sustainable utilisation of natural resources
• Prevention and limitation of air, water and soil pollution
• Promotion of sustainable energy.

DANCED initiated activities in Thailand and Malaysia in 1994. In 1995, activities were extended to the Republic of South Africa and Namibia, and in 1996 to Botswana, Swaziland and Lesotho.

Table 9.3. Danish financial contributions to the Framework Convention on Climate Change Process.

DANIDA started its EDRF-activities in the above mentioned two regions in 1996.

In relation to the issue of climate change, EDRF projects include two important activities:

• Carbon sequestration through reforestation of depleted lands
• Reduction of CO₂ emissions through promotion of energy conservation and renewable energy

Protection and rehabilitation of forests has been a priority issue for DANCED since the start of the programme. In Malaysia, support is provided on sustainable management of peat swamp forests and mangroves, and in Thailand, a number of projects address the issue of social forestry and the interaction between people and forests. In Namibia, DANCED is providing support to rehabilitate the wood land in Owampoland. Special efforts are directed towards public participation and awareness raising.

Sustainable energy was only included as a separate issue in the EDRF policy in 1996. Accordingly, many activities are still under preparation. Energy conservation projects have been implemented in Thailand as a follow-up of the new Energy Conservation Act. Energy conservation is also integrated into several cleaner technology projects in both Thailand and Malaysia. Activities related to energy conservation in the housing sector are under preparation in South Africa. Renewable energy projects are under preparation in Thailand, South Africa, Lesotho and Swaziland. Support has also been provided to strengthen energy administrations and to awareness raising through NGOs addressing energy issues.

Table 9.4. Bilateral EDRF contributions in 1997 related to implementation of the Rio-Convention, USD(million).

Capacity building and training.

In addition to the DANCED programmes, the Danish Environmental Protection Agency has supplied expert assistance and training to foreign environmental authorities and organisations since 1980s. The basic strategy has hitherto been to build up or extend a central environmental administration or similar central state organisation to control environmental conditions right from the start of specific development projects.

As such the programmes are not specifically directed towards Climate Change issues. However, as sustainable development is one of the guiding principles, in the long term the outcome of the programmes will also have an impact on issues related to Climate Change.

Through these programmes Danish environmental administration, monitoring systems and consultancy have been transferred and adjusted to the culture, traditions and special environmental problems of individual countries. This form of know-how transfer is a relatively long-term process and the direct Danish effort is therefore supplemented by local training and education by national experts.

The Danish EPA's export of know-how and expertise has included support for the reorganisation of national environmental protection agencies (e.g. the People's Republic of China) and support for environmental administrations (e.g. Gaza/Jericho and Egypt). These activities take place on a commercial basis, i.e. on a contract basis with an international financing institution (IFI) or as sub-contractor to one or several private consultancy companies.

Cooperation with small island developing states

In continuation of the 1992 Rio Conference, the 1994 Barbados Conference and the ongoing climate negotiations, the Danish Government is in the process of strengthening cooperation with small island developing states. Danish NGOs are also involved in this process.

The cooperation aims at strengthening the capacity of relevant regions with regard to renewable energy, climate change issues and information dissemination.

9.2 Cooperation with Central and Eastern Europe

The Danish Environmental Support Fund

The Danish Environmental Support Fund for Eastern Europe (DESF) was established by the Danish Government in April 1991. In 1993, the Fund was incorporated into the new Danish programme for Global Support for the Environment and Disaster Areas, which was initiated after the Rio Conference held in 1992. The DESF is administered by the Danish Environmental Protection Agency. In terms of contribution per habitant, the Danish bilateral environmental support to the CEEC is significant.

The objectives of the DESF are:

• to contribute as much as possible to the protection of nature and the environment in the CEEC and to limit regional as well as global pollution, including cross-border pollution affecting Denmark;
• to contribute towards political and economic development in an environmentally friendly manner, specifically to support democratic and market-based economic development in such a way that the environment is protected as much as possible; and
• to promote the transfer of knowledge about the environment and environmental protection technology from Denmark to the CEEC to the benefit of both the CEEC and Denmark.

The Danish environmental assistance and environmentally related assistance are primarily targeted at the eastern European countries which are situated close to Denmark, including Poland, the Baltic States and the Baltic areas of Russia. The point of departure of the environmental efforts is Denmark's leading role in the fields of environment and energy. The efforts are primarily related to the fields of environment and energy but are also related closely to most of the major sectors, for instance agriculture, industry etc.

Results in CEEC

Up to and including 1996, the DESF has allocated USD 0.21 billion of which USD 0.18 billion has been allocated to direct environmental investments or the preparation hereof. Danish investments are connected to other investments of approx. USD 0.71 billion. Thus total investments in this field are approx. USD 0.89 billion. The major part of these funds originate from the recipient countries themselves but international banks have also contributed to the funds.

A number of positive environmental effects which have already been achieved or will be achieved when investments are made should be mentioned even though these effects only indirectly and to an uncertain extent affect the climate:

SO₂

With a future 135 Gg per year reduction in SO₂ emissions, a significant reduction in the cross-border air pollution from desulphurization projects at Polish power plants can be achieved. This reduction corresponds to 90 per cent of the total Danish yearly SO₂ emissions. Other examples of important investment fields related to reduction in air pollution are reduction in airborne particles, nitrogen oxides, organic solvents etc. The efforts are closely linked to the countries' compliance with the Convention on long-range air pollution (LRTAP 1979) and its protocols.

Substances with the potentiel of harming the ozone layer

As regards protecting the ozone layer, considerable efforts have primarily been targeted at Russia. Russia contributes approx. 20 per cent to world consumption and production. A limited effort of USD 1.8 million has succeeded in preparing for the allocation of a USD 125 million grant from the Global Environmental Facility (GEF). In this field the best known effect has been Danish export of new district heating pipes which do not harm the ozone layer. These efforts are closely linked to the efforts related to energy.

A considerable number of other investments have been made in waste treatment plants and substitution of nuclear sources. Institutional strengthening has been given priority, too. An example is the bilateral cooperation related to approximation to EU environmental legislation by the countries.

Danish efforts through the environmentally related sectoral programmes in the energy field cover overall assistance to energy planning, establishment of organisations, planning of district heating, investments in wood-fired burners, energy efficiency and conservation schemes. These efforts have established the basis for an environmentally sustainable energy sector in the Baltic countries.

CO₂

Apart from implementing the national Danish strategy for CO₂ reduction, Denmark is implementing a similar strategy in Eastern Europe by granting assistance to projects targeted at reducing CO₂ emissions.

Already implemented projects targeted at reducing CO₂ emissions are shown in Table 9.5.

Table 9.5. Implemented projects targeted at reducing CO₂ emissions.

Projects under implementation are shown in Table 9.6.

Table 9.6 Projects under implementation targeted at reducing CO₂ emissions.

Furthermore, a considerable number of projects with a smaller reduction have been implemented. The accumulated reduction as a result of the projects is estimated at more than 800 Gg CO₂ per year. Add to this, considerable energy conservation originating from projects whose effects have not yet been calculated. The total Danish assistance is estimated to have lead to a reduction in CO₂ emissions of more than 1,000 Gg per year.

Presently none of the Danish bilateral projects participate in the pilot phase for Activities Implemented Jointly of the Climate Change Convention.

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