A climate law that stipulates a 70% reduction in greenhouse gas emissions by 2030, compared to 1990, and carbon neutrality by 2050. In addition, the initiative to end the use of oil and gas and admission of the need to increase climate finance. Welcome to the reality of Denmark, which, despite these goals, is the largest oil producer in the European Union.
“Oil and gas are not part of our future,” says Nicolai Prytz, Danish ambassador to Brazil, in an interview with sheet.
“The world will need oil and gas for a while. But decisions have to be made now. We want to create this alliance of countries that share the ambition that oil and gas must end.”
Prytz’ speech is materialized in the Beyond Oil and Gas Alliance (alliance to overcome oil and gas), launched recently, before COP26, the United Nations Conference on Climate Change, and headed by Denmark and Costa Rica.
The idea is to attract members and make a stand on the subject. Denmark has already declared the end of auctions for new oil exploration and has set a date to end the activity: 2050.
Joining the alliance doesn’t mean doing exactly what Denmark does, but some degree of commitment is needed to move towards the end of oil, says Prytz.
In 2020, with the support of eight of the ten parties in its Parliament, the Nordic country passed a climate law, which requires annual verification of efforts to reduce emissions.
“I would say it is the most ambitious climate law in the world,” he says. “Those who didn’t support wanted even stricter rules.”
According to the ambassador, this was only possible because climate change is the country’s main concern, as shown by opinion polls. But he also understands that this won’t necessarily be the first thought for everyone.
“I know that many Brazilians have challenges such as employment, economy, health and education. I understand that the climate is not the main issue when father and mother wake up and the concern is how the family will eat today.”
In the Brazilian climate issue, in his view, one of the central problems is deforestation, something that can be contained (as it was previously) with State policies.
Read the interview with the Danish ambassador below.
How did Denmark manage to pass the climate law? What did it take for the nation and politicians to embark on the idea? A key to understanding this is that Denmark has a history of the climate issue. One thing has changed a lot in the last elections, in 2019, in surveys on which issues concern voters the most.
For a long time, it was immigration, economic growth, health. Climate change was a high priority, but not at the top. Now the climate crisis is up there. That’s what worries the Danes most. It’s a trend you’ll see across Europe. It is a very strong signal from the electorate that politicians cannot ignore.
In less than a year, in 2020, we achieved what I would say is the most ambitious climate law in the world. And it has firm support from Parliament. Having political support makes it last.
Another key feature is that we establish partnerships with different sectors of the economy. They should make suggestions on how to achieve industry goals. Companies also feel ownership of the process.
A recent example, from a few weeks ago: the agricultural sector, which pollutes a lot, made a plan on how to reach the goals that came with an amount that needs to be invested in technology, development and research.
At what point did the population of Denmark wake up to the climate issue? It was in the oil crisis in 1973. We noticed that we were too dependent on fossil energy and that we would have to diversify. It had a serious impact on GDP. We were investing in new technologies that we would own.
The problem with oil and gas is that we depended on other countries, which were even in very conflicting regions. We are very vulnerable. But we have the wind and we own it. Also, the cleanest and cheapest energy is the one you don’t use. So, we also started to invest a lot in energy efficiency.
We are now the first significant oil producer in the world to put a deadline on production. We’re done with auctions. We respect the contracts that exist, we have more than 50 platforms operating in the North Sea, you cannot close overnight. But in 2050, there won’t be any more.
Oil and gas are not part of our future. It’s better to start now. The world will need oil and gas for some time to come, but decisions have to be made now. We want to set ourselves as an example.
What is Denmark’s plan for COP26? One thing we bring to Glasgow is implementation. We need to be careful that it doesn’t turn into a beauty contest where everyone puts up updated NDC numbers [sigla em inglês para Contribuição Nacionalmente Determinada, ou seja, a meta climática de cada paÃs para o Acordo de Paris]. But how are we going to track this?
We have model at least. I’m not saying it’s the only one. But every year the government has to go to Parliament to present how it intends to act next year. This is an annual budget thing, it’s a mechanism to ensure that we’re actually following up, year by year.
It is important to establish a mechanism that is a consensus. This is how we will continue our commitment each year, regardless of which government is in power.
One of the COP’s central themes is financing, which Denmark also has plans about. Of the famous $100 billion annually, Denmark will put 1%. It’s way above our natural share, considering that our GDP and our population don’t add up to 1% among rich countries.
We accept that developed countries have a very big responsibility in this regard. We remember well, it was a commitment that was born at COP15, in Denmark [em 2009]. We want to send a strong signal not only to developing countries, but to put pressure on other developed countries.
Is the Bolsonaro government doing its part to help contain the climate crisis? Obviously the main problem is deforestation. Something has to happen. Numbers don’t lie, it’s science. Everyone expects the numbers to be continuously reduced. What is missing is a coherent multi-year plan.
Denmark is also concerned about the origin of imported products. In terms of the European market, how much does Brazil need to worry about? It is a theme that will be much more present in the European Union going forward. They will have mechanisms to thoroughly assess the production chain to see if their product is clean.
I see the first, let’s say, “threats” to Brazilian exports. It’s not just political decisions. We have consumers who are very concerned about the climate. Follow the numbers of Indonesia, Brazil, countries that have important forests. Also, no surprise to anyone, the numbers [de desmatamento] in recent years they have received a lot of attention in Europe in the media and among companies and investors. Many sectors are concerned. It’s a topic to take very seriously.
Brazil has a very important story to tell the world in the energy matrix area, one of the cleanest in the world. Brazil must be a leader in every way in this debate on climate change. Unfortunately, the issue of deforestation, a recognized challenge, has greatly harmed Brazil’s image, and the first one interested in changing this must be Brazil.
You mentioned COP15, for which there were many expectations, but the final result was hindered by the participants. The aftertaste was too bitter, what could have been and what actually happened at the conference? As a host country, you have a lot of expectations. We wanted it to be a huge hit, but it obviously wasn’t. But it had results: we are talking today about financing, an idea that was pursued there. There were results, but not the spectacular ones everyone wanted.
Of course it hurt a little. I will not parallel the World Cup in Brazil [risadas]. It doesn’t mean it was a bad Cup, there were several interesting games. But you want a result that will be remembered.
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Nicolai Prytz, 55
Danish Ambassador to Brazil since September 2018. He has a Masters in Law and an MBA in Foreign Trade and Business. In 1998, he worked at the Ministry of Foreign Affairs, as section head at the European Union Policy Coordination Department. Between 2001 and 2002, he was deputy head of mission at the Embassy in Buenos Aires and, from 2002 to 2004, at the Embassy in BrasÃlia. From 2007 to 2013, he was consul general at the Consulate in São Paulo. Before his current position in Brazil, he was consul general in Shanghai.
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