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The Tyra East and Tyra West oil and gas processing platforms sit in the port of Frederikshavn in Denmark on Sept. 15, 2020, where they're being scrapped and recycled.

HENNING BAGGER/AFP/Getty Images

Denmark has decided to end all oil and gas activities in the North Sea by 2050 and has cancelled its latest licensing round, saying the country is “now putting an end to the fossil fuel era.”

The Danish Parliament voted late Thursday to end offshore gas and oil extraction, which had started in 1972 and made the country the largest producer in the European Union. Non EU-members Norway and Britain are larger producers, with a bigger presence in the North Sea.

Denmark is this year estimated to pump a bit more than 100,000 barrels of crude oil and oil equivalents a day, according to the government.

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That is relatively little in a global context. The United Kingdom produces about ten times that amount while the United States, the world’s largest producer, pumped more than 19 million barrels of oil a day last year. Environmental activists nevertheless said the move was significant as it shows the way forward in the fight against climate change.

Greenpeace called it “a landmark decision toward the necessary phase-out of fossil fuels.”

“This is a huge victory for the climate movement,” said Helene Hagel of Greenpeace Denmark. Wealthy Denmark has “a moral obligation to end the search for new oil to send a clear signal that the world can and must act to meet the Paris Agreement and mitigate the climate crisis.”

The 2015 landmark Paris climate deal asks both rich and poor countries to take action to curb the rise in global temperatures that is melting glaciers, raising sea levels and shifting rainfall patterns. It requires governments to present national plans to reduce emissions to limit global temperature rise to well below 2 degrees Celsius (3.6 degrees Fahrenheit).

Denmark has been an early adopter of wind power, with more than a third of its electricity production deriving from wind turbines. They are considered key in the transformation of the energy system and should enable Denmark to no longer be dependent on fossil fuels in 2050 for electricity production.

The agreement to end oil and gas extraction means that a planned eighth licensing round and any future tenders have been cancelled and makes 2050 the last year in which to extract fossil fuels in the North Sea.

It was backed by both the left-leaning parties as well as the centre-right opposition, suggesting the policy is unlikely to be reversed.

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“It is incredibly important that we now have a broad majority behind the agreement, so that there is no longer any doubt about the possibilities and conditions in the North Sea,” said Climate Minister Dan Joergensen, a Social Democrat.

According to official figures, the move would mean an estimated total loss for Denmark of 13 billion kroner ($2.7 billion). The industry has earned the small Scandinavian country more than 500 billion kroner ($104.2-billion) since the 1970s.

In October, energy group Total SE pulled out of the latest tender process leaving only one applicant, Ardent Oil, according to authorities.

In June, the Danish Council on Climate Change – an independent body that advises the government – recommended ending any future exploration in the North Sea, saying a continuation would hurt the country’s ambitions as a front-runner on fighting climate change.

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