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Danish government to help municipalities and regions finance green projects

Danish government to help municipalities and regions finance green projects

It has set aside nearly EUR 40 million for projects that will reduce the energy use of public buildings

From Monday 1 November, municipalities and regions in Denmark can apply to receive grants for green projects that will optimise the energy consumption of public buildings. On 27 October, the Danish Ministry of Climate, Energy and Utilities revealed this news, noting that it will allocate DKK 295 million (over EUR 39.6 million) to help co-finance these projects.

According to the ministry, it is estimated that up to 70% of Denmark’s buildings are at the low end of the energy labelling scale (D, E, F, and G). Thus, the grants will mostly target projects that seek to reduce the energy use of such buildings.

Essentially, the government will allocate funds for energy renovation projects and digital solutions or software that can monitor and optimise energy consumption. Giving concrete examples of such projects, the ministry shared that it would help finance the re-insulation of libraries and the conversion to heat pumps, among others.

"It makes sense all the way around when the leaky windows in the local school are replaced with new ones. The indoor climate is improving, and there are savings to be made on both the heating bill and CO2 emissions.

Using less energy is also about using energy correctly, and therefore it is also important that the municipalities and regions also get better tools for digitally monitoring and optimising energy consumption,” Minister of Climate Dan Jørgensen commented.

Apply until 8 November

Municipalities and regions can apply for the first DKK 150 million (over EUR 20 million) from 1 November until 8 November. If their applications are successful, they can receive grants corresponding to 30% of the cost of the approved projects. Grants cannot exceed DKK 5 million (EUR 672,070).

The second call for applications will open in 2022 – when municipalities and regions will be able to receive grants from the remaining DKK 145 million (over EUR 19 million).

Minister Jørgensen emphasised that the government’s grants will not only help improve the lives of citizens but also contribute to the fight against the climate crisis.

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