Investing in the green transition
Danish politicians have set ambitious decarbonisation targets, aiming for a 100% reduction in emissions by 2050. However, turning these ambitions into reality poses a significant challenge. Achieving this goal will require investments exceeding €215 billion by 2050—equivalent to the cost of constructing 50 metro city-rings. These investments are especially critical in areas like the expansion of renewable energy production, grid expansions, and investments in biogas, hydrogen and CCS.
Building the path to decarbonisation
Large-scale construction projects are particularly central to advancing the green energy transition. For these projects to come to life, project developers must prepare high quality business cases before making investment decisions to ensure that they deliver true value. This is a complex and resource-intensive process, that will lay the foundation for the work ahead.
If the Danish Government wishes to realise these investments, action is necessary. However, it must be considered whether the necessary conditions are in place to make this transition a success.
Morten Eskerod
Partner, Transformation & Sustainability Advisory
KPMG in Denmark
To achieve the goals, we are going to need capital, raw materials, and labour. While international resources can play a role, the competition will be intense. For instance, components essential to the green transition are not readily available on demand.
This highlights the importance of addressing supply chain challenges. But it is also important that we ensure resources within the authorities that will handle environmental approvals for these large-scale construction projects.
At KPMG, we see project developers increasingly prioritising risk management. Understanding and mitigating risks is essential to realising their investments. There are many ways to achieve this, and in this Thought Leadership KPMG proposes a five-step approach to excel in risk management in budgeting and scheduling.
