From national ban to global climate policy renewal: Denmark’s path to leading on oil extraction phase out

Abstract

Denmark is the first major oil-producing state—the largest oil producer in the European Union to date—to withdraw from future oil production. In 2020, the Danish Parliament passed the North Sea Agreement (NSA), which established 2050 as the end date for all offshore oil and gas production and, at the same time, cancelled the eighth licensing round and all future tender rounds for hydrocarbon exploration and extraction. While essential in Denmark’s ambitious domestic climate commitments, this national ban is also a keystone in a vital turn in global supply side climate policy as Denmark endeavours to encourage other states to curtail fossil fuel production via its lead role in the Beyond Oil and Gas Alliance (BOGA). This paper explores the origins and development of Denmark’s NSA. Focusing on specific conditions that enabled the development of the national ban, this case study examines how Denmark’s national climate policy reinforces burgeoning global anti-fossil fuel norms (AFFN) and serves as a model for other states seeking to implement supply side climate policies. It concludes with an analysis of opportunities for extending Danish leadership in aligning oil production with the imperative for a net-zero world.