#52 - Business news from the Economic Mission of the French Embassy in Denmark [fr]

Business news from the Economic Mission – 04.02.2021

Disclaimer - The Economic Mission strives to provide accurate and up-to-date information and will correct, to the extent possible, any errors that are brought to our attention. However, it cannot be held responsible for the use and interpretation of the information contained in this publication.

ECONOMY AND RECOVERY

The consequences of the winter lockdown on the Danish economy are less severe than those of the spring 2020 restrictions. This trend can be seen, among other things, in the data on private consumption, employment and road traffic. While at the end of March 2020, private consumption by Danes was 40% lower than at the end of March 2019, consumption in the first two weeks of 2021 fell by only 15 and 20% compared to the same weeks in 2019. Moreover, unemployment figures had risen sharply in the spring of 2020; on the contrary, the development of unemployment at the beginning of 2021 follows seasonal fluctuations. The trend in employment is confirmed by the data on the number of job advertisements: while there were 50% fewer job advertisements than expected during the spring lockdown on JobIndex, the number of new job advertisements hardly deviates from the normal trend at the beginning of the year. Finally, the number of cars on the road decreased by only 30% at the beginning of 2021 compared to the beginning of 2019, compared to a decrease of 50% at the end of March 2020. Børsen

The coronavirus crisis is having a mixed impact on employment in Denmark: while 32,598 private jobs were lost in the first ten months of 2020, more than 11,600 new civil service jobs were created. The November employment increase of 3,107 people is also marked by an increase in public employment (2,455 jobs created in the public sector compared to only 649 in the private sector). Such a trend had not been observed since the 2008 financial crisis. While some explain this simply by the additional staff needed for testing, health care and administration of compensation schemes, others, such as the Danish Employers’ Association, are concerned about this development once the crisis has passed. Berlingske

The government has reached an agreement on compensation for mink farmers, the maximum amount of which will be DKK 18.8 billion (€2.53 billion). This amount corresponds on the one hand to the compensation for mink farmers for mink slaughtered in 2020 (including the slaughter speed premium) and for the loss of future income from 2022 to 2030, and on the other hand to the compensation for the rest of the industry and the industries dependent on mink farming. In reaction to the government’s announcement of the amount of this compensation, various opposition parties have denounced the excessive compensation of mink farmers. The Ministry of Industry estimates, however, that the debt of mink farmers amounts to about DKK 8.5 billion (€ 1.14 billion), and that a significant part of this financial assistance will be used to repay creditors, including banks. Finans, Finans, Børsen

BREXIT

Denmark is expected to receive DKK 1.74 billion (€233 million) in 2021 to amortize Brexit, according to a proposal from the European Commission. Denmark would thus be the sixth largest beneficiary of the Reserve Fund (which this year amounts to €4.2 billion), behind Ireland, the Netherlands, Germany, France and Belgium. DKK 1.1 billion (€147 million) of the support that Denmark should receive is intended to compensate fishermen. Finans

GREEN TRANSITION - ENERGY

Danish companies are maintaining their green ambitions despite the crisis. A November survey among members of the Danish Chamber of Commerce (Dansk Erhverv) shows that 45% of companies had financed green investments in the last three months. At the same time, the Erhvervslivet Klimalliance (Erhvervslivet Klimalliance), a collaboration of industry and energy trade organizations (Dansk Industri and Dansk Energi), warns that there is a risk that climate partnerships will lose momentum and that the green transition of Danish companies will lag behind other countries due to slow political efforts. The alliance, composed of 24 companies, will deliver 10 recommendations for policymakers in February. Børsen, Børsen

Five Danish companies are in the global ranking of the 100 most sustainable companies. The ranking by the Canadian firm Corporate Knights, which for the 17th consecutive year assesses the sustainability of more than 8,000 companies with revenues over $1 billion, includes Ørsted (2nd place), Vestas (21st), Chr Hansen (24th), Novozymes (36th) and Novo Nordisk (98th). Various parameters are taken into account in this ranking, such as energy efficiency, CO₂ emissions, water consumption and waste management. With the exception of Vestas, which improved its ranking compared to the previous year, the Danish companies in the ranking fell back, with Ørsted losing 1st place to Schneider Electric. Finans

44% of Danish public tenders subject to EU rules contain sustainability elements. This is the "not very impressive" result, according to Kenneth Skov Jensen, head of department at the Danish Competition and Consumer Authority (Konkurrence- og Forbrugerstyrelsen), of a census that examined nearly 2,000 tenders from July 2019 to March 2020. This mapping is part of the government’s new public procurement strategy, which was presented in October 2020 and which plans to use public tenders, worth DKK 380 billion (€51 billion) per year, to accelerate the ecological transition.Børsen

Six players have pre-qualified to participate in the tender for the Thor offshore wind farm in the North Sea. The wind farm will supply 800,000 Danish households with electricity and is expected to be operational by the end of 2027 at the latest. It is the first of the three offshore wind farms included in the 2018 Energy Plan. Among the companies and consortia approved by the Energy Agency are the consortium of Total (FR) and Iberdrola (ES). The other bidders are the Danish giant Ørsted; Sweden’s Vattenfall; Thor Wind Farm (owned by Germany’s RWE); a joint venture between SSE Renewables (UK) and the Thor OFW consortium (owned by Copenhagen Infrastructure IV Thor OFW and the Danish energy company Andel); Swan Wind (a consortium of the Dutch Eneco and the Danish European Energy). The winner is expected to be announced at the end of 2021. L’Agence danoise de l’Energie, Berlingske

New partnership to accelerate the decarbonization of maritime transport. The SOFC4 Maritime initiative will examine the potential for the use of solid oxide fuel cells in connection with green (Power-to-X) fuels, such as ammonia, in the marine transportation sector. Alfa Laval will lead the project, which also includes Haldor Topsøe, DTU Energy, Svitzer and Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. The project is expected to run for two years and can be considered an essential part of the design of a carbon-neutral ship, according to Alfa Laval’s director in Denmark, Søren Hjort Krarup. Børsen

Dernière modification : 04/02/2021

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