Circular economy outlook in Denmark: New fund to speed up circular business models
Circular economy outlook in Denmark: New fund to speed up circular business models

Insight

Circular economy outlook in Denmark: New fund to speed up circular business models

Insight

Circular economy outlook in Denmark: New fund to speed up circular business models

Denmark, known for its ambitious climate policies, is taking further steps toward sustainability through its Action Plan for Circular Economy. This plan includes 129 initiatives designed to transform the country's waste sector, aiming for climate neutrality by 2030 and an 80% reduction in incinerated plastic waste by the same year. Additionally, Denmark has committed to EU targets to increase recycling rates of municipal waste to 55% by 2025, 60% by 2030, and 65% by 2035. A new DKK 125 million initiative by the Danish Industry Foundation aims to kick-start the transition in Danish companies and ensure that Denmark becomes an international knowledge hub for circular production.

When

Turning Waste Challenges into Opportunities

Denmark holds the European record when it comes to municipal waste per capita – approximately 800 kg per year, according to Statista. As outlined in the Action Plan for Circular Economy, it is the Danish Government's target to ensure less waste and better use of natural resources. This high level of waste per capita presents significant opportunities for innovation and investment in waste reduction technologies and circular business models, positioning Denmark as a promising market for foreign investors within the industry.

Circular Economy in the EU: Progressing Towards 2026 and Beyond

The new EU Circular Economy Act, expected to be published in 2026, will reshape how industries use resources, reduce waste, and create competitive advantages globally. This ambitious legislation aims to tackle resource shortages, waste problems, and global competition, directly supporting sectors like renewable energy, sustainable packaging, and green manufacturing.

At its core, the EU Circular Economy Act is not just about compliance - it’s about seising opportunities. From stimulating innovation in electric vehicles and reusable packaging to boosting the production of solar panels, sustainable fuels, and wind turbines, the Act will ripple across every sector striving to achieve CO2 neutrality by 2050.

For investors, the Act will create a favourable regulatory environment that incentivises businesses to innovate and adopt circular practices. Denmark, with its supportive policies and advanced infrastructure, is poised to be a key beneficiary of these changes, making it an attractive destination for circular economy investments.

Denmark's well established value chain in waste infrastructure and proactive circular policies will enable businesses operating with cost-effective and innovative solutions.

Use case

Viridor Quantafuel supporting Denmark’s transition to a circular economy

Viridor Quantafuel is taking big strides toward making Denmark a leader in the circular economy. With new investments, and a clear vision for the future, Viridor is helping to build a sustainable waste management system that benefits both the environment and the economy.

A Game-Changer for Plastic Recycling in Denmark

In 2024, Resource Denmark (RD) – 50% owned by Viridor Quantafuel – successfully kicked off operations capable of sorting 100% of Denmark’s household plastic output. With the recent award of a critical Extended Producer Responsibility (EPR) contract under VANA, RD is set to spark the creation of a broader plastic recycling ecosystem in Jutland and across Denmark. This milestone reinforces Denmark’s leadership in sustainability and innovative waste solutions. 

Progress in Skive: Tackling the Toughest Plastics

Viridor Quantafuel has developed a technology that makes it possible to recycle the waste plastic that today ends up in waste incineration

At its Skive facility, Viridor Quantafuel has been focusing on recycling contaminated films. The team has tested a range of feedstocks originating from Danish and British households at laboratory, pilot, and plant scales, proving the feasibility of recycling materials that were previously considered non-recyclable.

Today, Viridor Quantafuel is sending its certified pyrolysis oil from chemically recycled plastic waste at European sites to produce virgin-grade recycled plastic. This plastic is suitable for food, medical and automotive appliances.

Investing in the Future: Commercial Scale-Up 

To take recycling to the next level, Viridor Quantafuel is preparing to scale up operations in Esbjerg. This planned investment supports technological advancements and strengthens Denmark’s position as a global leader in the circular economy.

 

Funding opportunities

The Danish funding landscape is highly targeted towards sustainable measures and practices in the industry, with various schemes open, including several programs specifically focused on circular economy.

Most recently, the Danish Industry Foundation has announced a historically large fund of 125 million DKK, aimed at accelerating the transition to circular production in Danish companies. The new scheme supports Denmark’s ambition to become an international knowledge hub for the circular economy and aligns with the country’s broader sustainability goals, including waste reduction and increased recycling rates.

The scheme supports 10 large-scale projects aimed at accelerating circular production in Denmark, with Aalborg University, The Technical University of Denmark, The Technological Institute of Denmark, and other leading institutions spearheading the initiative. Over the course of the programme, 400 to 500 companies will receive direct support to implement circular production models, reducing dependence on scarce raw materials and increasing resilience against global supply chain disruptions.

Invest in Denmark can assist in understanding, navigating and connecting to EU and national grant schemes, including programmes supporting research, innovation, and development in the circular economy.

 

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Want to learn more about circular economy opportunities in Denmark?

We provide free-of-charge confidential and tailor-made solutions for foreign companies looking to set up a new business in Denmark or expand an existing one. Please contact one of our experts here:

Copenhagen

  • Sarina Lohmann

    Title: Special Advisor – Maritime and transport – Analysis & Partnerships

    Area: Copenhagen

    Phone: +4533920423

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