The regulatory framework for the Danish climate related policies including the energy efficiency sector is laid out in an ambitious and binding Danish Climate Act that was adopted in year 2019 by the Danish Government led by the Social Democrats) and supported by a majority of the other political parties with the perspective it will stay robust for political changes.

The Climate Act entails a climate target of 70 percent CO2 reduction in 2030 compared to the level in 1990 and aim to ensure that Denmark takes the lead in the green transition, raises ambitions for the climate and inspires the whole world to climate action. The long-term target is to reach CO2 neutrality by 2050.

The Climate Act obliges the Minister of Climate, Energy and Supply to present a climate program, which will be the key tool for a continuous assessment and adjustment of Danish climate efforts. The Danish Council on Climate Change was established in 2015 and has the role to monitor and give guidance on the implementation process of the climate policies. Hence at the beginning of each year, the Climate Council must provide a professional assessment of whether the government is on the right path towards the goals of the Climate Act.