Be part of Denmark’s green transition

30.11.2020

One of the major themes for Danish companies as well as consumers continues to be the one of sustainability and green transition. It is a common understanding that with the pandemic crisis the importance of being “Green” “Renewable” “Sustainable” “Circular” becomes even more crucial. Danish companies of all sizes here have a focus on building sustainable businesses, contributing to Denmark’s goal of 70% emissions reductions by 2030, and integrating the UN Sustainable Development Goals into their business models. Furthermore, several major industry players like Rockwool and Aalborg Portland have formed climate partnerships with the Danish government where they officially commit to substantially contribute to emission reduction.

This commitment to sustainability undoubtedly drives market demand for Estonian products and services, which in turn delivers solutions and innovation in areas such as renewable energy, electrification and energy efficiency. Danish companies look for partners who help them keep refining their approach and to continue the transition to a more sustainable, low-carbon and resource-efficient society. Thus, Estonian firms can engage in various partnerships with Danish counterparts to help accelerate the green transition and sustainable development of Denmark.

The Danish market holds exceptional business opportunities for suppliers of a sustainable technology, producers of goods and services with favorable environmental impact and solutions with potential for both transition and growth in the green area. Indeed, there is an evident spillover effect and major market opportunities exist also for subsuppliers to the green sectors and producers of sustainable solutions.

A most recent example and a success story of an Estonian company tapping into the market potential comes from the area of waste management and recycling. Earlier this year a new agreement between the political parties have been made that from July next year 10 different waste types need to be sorted. An export opportunity here was well spotted by Sortaider, a producers of sorting stations for waste management, made from natural material and shipped flat packed. Need to note here that top quality and design are a necessity for any successful export to Denmark and Sortaider was able to offer that as well. Sortaider approached potential Danish cooperation partners during the summer, presented their products at a design festival in Copenhagen in September, and the first order was shipped to Denmark already in October.

Major focus on green solutions is also evident in the construction and building material sector, which represents 30- 40 % of Danish emissions.  The emphasis is on increasing energy efficiency of new building, energy renovation of old buildings, replacing concrete elements with wood and building in wood in general. In this relation, various subsidies and grant schemes are available to companies to develop and demonstrate new technologies as well as to private house owners to help them convert to using heat pumps, replace windows, install mechanical ventilation with heat recovery through a heat exchanger, etc. This represents a great export opportunity for Estonian suppliers.

To this end, to successfully find new customers in Denmark, it is not an overstatement to say that it is a must to have a green element in your business concept, no matter in which industry sector your company is active within, be it IT, food processing, furniture, fashion, or other. This can be done in many ways, for example by obtaining relevant sustainability certification and documentation, cooperation with only certified suppliers, higher material efficiency and better recycling, or ensuring that your products leave as small of an ecological footprint as possible. Your Danish partners will demand it, maybe even see it as a matter of course.  

Business in the context of Covid-19

There is no denying that the pandemic has caused a lot of disruption to industry across the globe and in every sector and Denmark is no exception. However, despite a full lockdown in the spring, and new strict restriction being imposed these days when the virus is getting stronger again, Denmark has remained open to business and the supply chain between Estonia and Denmark has been and is operational.

Nevertheless, Estonian companies working with Denmark have been affected in some ways. The limited possibly for travel has hindered Estonian companies' ability to meet customers, or potential customers, in person. However, this issue is being addressed as firms in both countries have ramped up their digital presence and recognized the possibility to connect and work in new ways.

It obviously varies how various industry sectors are hit by the pandemic crisis. Besides the aforementioned green industries, also pharmaceutical industry, MedTech, food industry and construction industry show good results, just to name a few. On the other hand, of course tourism and hospitality have been hit hard, next to for example fashion retail, maritime and oil industry.

Another observation is that competition to find new customers in Denmark, especially in the B2B segment has become fiercer. Many Danish companies say that they experience an increase interest from new potential suppliers.  At the same time, the majority declares that they focus on working with their existing network of suppliers and for many buying local is more important than ever. As a result, when deciding where to find new suppliers, the parameter of closeness, which equals minimizing vulnerability, receives even higher weight.

In closing, there are a number of Estonian companies which have successfully secured contracts in Denmark in recent months and many new partnerships are being currently discussed, so the future does look bright for the Danish-Estonian trade relations.

Support to Estonian exporters
Should you need support with your export effort targeting the Danish market, you are very welcome to contact EAS export advisor in Denmark, Lucie Fallesen. She has many years of experience assisting existing as well as new Estonian exporters to expand on the Danish market. Provided services include sector analysis, overview of potential partners, screening of market potential, and scheduling meetings with potential customers. Please direct your inquiries at lucie.fallesen@eas.ee or +45 6064 3304.

 

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