Denmark's plan for an oil-free future

denmark.gi.top.jpgThe Danes are considering a plan to completely cast off their dependence from fossil fuels. By Aaron Smith, staff writer


NEW YORK (CNNMoney.com) -- Danish scientists have outlined how their country could phase out its use of fossil fuels by 2050.

Denmark currently derives about 80% of its power from fossil fuels, using wind farms and other sources to fill the gap. A government-appointed committee has unveiled a plan on how the nation of 5.5 million people could throw off the oil yoke and convert completely to renewable power, mostly from wind and biomass.

"It is realistic to assume that the transition to an energy system independent of fossil fuels can be achieved by 2050," read a report by the Klimakommissionen, the Danish Commission on Climate Change Policy. "Most of the necessary technology is already known today, and the present energy system will, in any case, have been replaced by 2050."

As part of this plan, the Danish government would have to increase its tax on fossil fuel ten-fold by 2030 in order to dissuade people from its use.

Commission spokesman Lars Georg Jensen told CNNMoney.com, "It is now up to the government and parliament to decide whether they will follow the advice of the commission."

President Obama also has a plan to reduce American's dependence on oil, but nothing so ambitious as the Danes. The Danish plan is even more ambitious than the European Union's goal to reduce dependence on fossil fuels by 60% to 80% by 2050.

The Danish plan acknowledges that total rejection of oil and gas power would be difficult in the transportation sector, and nearly impossible overall. Denmark exports wind-generated power when it is plentiful but imports power during the doldrums. Often the power it imports is derived from fossil fuels.

American analysts said this plan might work in a European country the size of Massachusetts, but it would be tough, if not impossible, to implement in a nation as massive and populous as the U.S.

"The difference is that our consumption of energy is so much larger than it is in Denmark," said Chris Lafakis, an economist specializing in energy at Moody's Analytics, noting that the U.S. consumes about 20 million barrels of oil per day. "It's much more difficult for us to completely wean ourselves off of that," he said.

Lafakis added that unlike Denmark, the U.S. supplies about a quarter of its own oil needs.

"What we can do is increase the amount of renewable energy that we do consume." To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.12%4.18%
15 yr fixed3.25%3.21%
5/1 ARM3.48%3.32%
30 yr refi4.18%4.17%
15 yr refi3.30%3.21%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,042.90 -28.32 -0.17%
Nasdaq 4,493.39 -12.46 -0.28%
S&P 500 1,972.29 -5.51 -0.28%
Treasuries 2.51 0.02 0.68%
Data as of 7:59pm ET
Company Price Change % Change
Ford Motor Co 14.79 -0.32 -2.12%
Bank of America Corp... 17.05 0.04 0.24%
eBay Inc 56.63 3.97 7.54%
Apple Inc 100.75 0.64 0.64%
General Electric Co 25.62 0.20 0.79%
Data as of 4:00pm ET

Sections

CNNMoney's Italian-American investing correspondents did a taste test of Olive Garden's food. They agree with hedge fund Starboard: It's not very appetizing. More

Even limited air operations could cost up to $4 billion a year, says a think tank, while large ground forces could cost $1.8 billion a month. More

Microsoft showed off the new Windows 10 at an event for business customers Tuesday. More

On Wednesday, 17% of First Green Bank's 66 employees will get a raise under the company's new "living wage" program. The guarantee: At least about $30,000 a year. More

This mom of four only makes $29,000 a year and is losing $400 a month because the state is garnishing her paycheck over a debt. Now she is about to be evicted from her apartment. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.