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Green recovery for Denmark: a new renovation scheme for the social housing sector

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The government proposes to allocate DKK 30 billion (4 billion €) for green renovations in the social housing sector as a first step towards a green recovery of Denmark.

On the 1st of May, Denmark's Social Democratic Prime Minister, Mette Frederiksen, made a crucial announcement that relieved many public housing companies in Denmark: a proposal to activate 30 billion DKK from the Landsbyggefonden (the National Building Fund) to renovation of social housing during 2020-2026. Of these, 18.4 billion DKK (2.4 billion €) will be used to renovate the 72,000-social housing in the fund's support queue. The remaining 11.6 billion DKK (1.5 billion €) will serve future renovations until 2026, with the focus on the green transition.


The public housing sector is a cornerstone of Danish society. According to the Danish Ministry of Transport and Housing, there are about 540,000 public housing units and approximately 1 million Danes live in a public housing. The renovation of the housing stock has become a latent need in Denmark. A total of 453 approved renovation projects spread across the country are currently on the waiting list at the Landsbyggefonden - 72,000 public homes that are outdated, harmful to residents’ health and heavy on the energy barometer.


The announcement also comes in a time when Denmark, like many other European countries, is facing a hit in the economy due to the COVID19 pandemic. Many thousands of construction workers have lost their jobs because of the corona crisis and are now unemployed.


Now, a major and sustainable modernisation of the country's public housing must be seriously pushed to simultaneously push the economy in after the corona crisis and ensure a social energy transition.


Read the full news here.