DENMARK Law and Practice Contributed by: Jakob Østervang, Peter Østergaard Nielsen, Anders Hørlyck Jensen and Tejs Degn Leth Ernst, Accura Advokatpartnerselskab
The act sets legally binding targets for reducing green- house gas emissions by 70% by 2030 compared to 1990 levels for Denmark and mandates the Danish government to publish an annual report on the status and outlook of climate efforts, ensuring transparency and accountability. The act includes specific measures for various sec- tors, including energy and infrastructure, to ensure they contribute to the overall climate goals. Impact on M&A M&A transactions in the energy and infrastructure sec- tors have not been directly impacted by the act, but targets set in the act and incentives created to facili- tate the targets being met are affecting the interests and possibilities of investors. Resulting from the act is among other things an increased focus and activity in carbon capture and storage (CCS), which is par- tially driven by multiple new CCS tenders and state aid being available. 6.2 Key Developments in Renewable Energy and Cutting Emissions The most significant legal developments in Denmark related to renewable energy over the past three years centre around three transformative initiatives: the Cli- mate Act, the Power-to-X (PtX) Strategy the Grid Tariff Reform. These developments reflect Denmark’s ambi- tion to become a global leader in green energy and carbon neutrality. Climate Act and Emissions Targets Denmark’s Climate Act, passed in 2020 and updated in recent years, legally mandates: • a 70% reduction in greenhouse gas emissions by 2030 (compared to 1990 levels); and • a revised target of climate neutrality by 2045, brought forward from 2050. Denmark’s PtX Strategy, published in 2021, is a legal and policy framework to support: • production of green hydrogen via electrolysis pow- ered by renewable energy; • conversion of hydrogen into fuels like ammonia and methanol for transport and industry; and
• a target of 4–6 GW of electrolysis capacity by 2030. Recent legal developments include: • a PtX Agreement (2022) with DKK125 billion in sup- port; • a guarantee of origin for hydrogen (2023), enabling market trading; and • infrastructure planning for a hydrogen backbone from Esbjerg to Germany, backed by DKK15.7 bil- lion in loans and subsidies. Grid Tariff Reform and Market Integration From January 2023, Denmark introduced a new tariff model requiring renewable energy producers to pay geographically differentiated grid connection fees, a move aimed at balancing infrastructure costs and encouraging strategic siting of projects. 7. Due Diligence/Data Privacy 7.1 Energy and Infrastructure Company Due Diligence In Denmark, the listed target company is not obliged to give the offeror access to due diligence. However, as most takeover offer processes in Denmark are completed as “friendly” takeovers, the target com- pany usually allows the offeror to conduct limited due diligence, typically carried out in connection with the negotiation of transaction documents and prior to the publication of the offeror’s decision to make a takeover offer. Accordingly, the board of directors has significant discretion in determining the level of due diligence information to be provided. The target company can provide a range of due dili- gence information to offerors, including financial state- ments, business plans, legal documents, and opera- tional data. However, the level of detail and type of information shared can vary depending on the nature of the transaction and the company’s policies. The board of directors must balance the need to provide sufficient information for offerors to make informed offers with the need to protect sensitive company information.
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