3.7.   Danish environmental support schemes



In line with other well-off countries, Denmark has been providing both multilateral and bilateral development aid to developing countries for many years. This aid, which is administered by the aid organization DANIDA, at present amounts to DKK 9,000 million annually. The political decision has been taken that aid should increase from the current level of 1% of the GDP to 1.5% by the year 2002.

It is therefore expected that in a few years time total aid will amount to over DKK 16,000 million annually. The intention is that this aid be shared such that developing countries will receive DKK 10,000 million while DKK 3,000 million will be earmarked for environmental support - DKK 1,500 million for developing countries over the poverty level (per capita GDP of USD 1,795) and DKK 1,500 for Eastern Europe - with the remaining DKK 3,000 million being earmarked for refugee aid.

Aid to Eastern and Central Europe is determined by a 1991 Act and the funds set aside for the purpose each year by Parliament. The aim of this aid is to promote the transfer of environmental know-how and technology from Denmark to the recipient countries in the interest of both parties. Emphasis is therefore placed on subject areas where Danish environmental know-how and technology are conducive to being able to provide qualified assistance. In 1995 DKK 350 million is available, apportioned partly to proper environmental projects, partly to environment-related sector programmes (energy, nuclear safety, etc.). The scheme is administered by a special division of the Danish EPA.

The aid is based on the principle of private initiative and help to self-help. Project proposals have to derive from the private sector, normally from a Danish enterprise that has found a partner (private or public) in the recipient country who wants the project to be undertaken. The greater the financial input from the recipient country, the greater the priority given to the project. It is considered especially positive if the aid can limit transboundary pollution of Denmark or the Baltic, but the main objective of the aid is economic and political.

Projects in Poland have hitherto received the greatest part of the aid (40-50%), although high priority is also given to the Baltic countries and Baltic areas of Russia (St Petersburg and Kaliningrad). In addition, the Czech Republic, Slovakia and Hungary have high priority as far as concerns air pollution. The projects can comprise both consultancy (hitherto approx. 60%) and pollution abatement equipment (hitherto approx. 40%). The majority of aid has been assigned to projects concerning air pollution abatement, nuclear safety, water purification and waste management.

Environmental aid to developing countries over the poverty level was initiated in 1994. It is administered by a special division of the Danish EPA and is commonly referred to as DANCED (Danish Cooperation for Environment and Development). The inspiration for this scheme comes from the fact that it is in exactly this group of developing countries that environmental problems are most conspicuous. From the Danish point of view the objective is once again economic and political. The aid shall promote the transfer of environmental know-how and technology from Denmark to the recipient countries in the interest of both parties. In 1995 DANCED has at its disposal DKK 300 million.

DANCED initially selected Thailand and Malaysia as programme countries. At the same time DANIDA decided to make a special effort in Vietnam, Cambodia and Laos, which are poor developing countries. The approach taken by DANCED is basically the same as that taken by DANIDA and other aid organizations: In cooperation with the developing country in question DANCED defines what projects are needed. Thereafter a call for tenders is made whereby interested parties can tender for the work. - The first year the aid was equally divided between Thailand and Malaysia. Projects concerning urban areas and industry dominated, although projects concerning forestry and biodiversity also played an important role.

In 1995 southern Africa (South Africa, Namibia and Botswana) were also included under the remit of DANCED.

Finally, it should be mentioned that DANIDA expects environmental aspects to play a more prominent role in their future projects in the poor developing countries.