Member State report / Art8esa / 2018 / Denmark

Report type Member State report to Commission
MSFD Article Art. 8.1c Economic and social analysis
Report due 2018-10-15
Member State Denmark
Reported by Danish Environmental Protection Agency
Report date 2019-08-30
Report access DK_ART8_ESA_20190829.xml

Baltic Sea

Marine reporting unit
  • BAL-DK-TOTAL
  • BAL-DK-TOTAL
  • BAL-DK-TOTAL
  • BAL-DK-TOTAL
  • BAL-DK-TOTAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
  • DK-TOTAL-part-BAL
Feature
Aquaculture - marine, including infrastructure
Fish and shellfish harvesting (professional, recreational)
All activities related to tourism and leisure
Transport infrastructure
Eutrophication
Fish and shellfish processing
Hunting and collecting for other purposes
Marine plant harvesting
Extraction of minerals (rock, metal ores, gravel, sand, shell)
Military operations (subject to Article 2(2))
Transmission of electricity and communications (cables)
Renewable energy generation (wind, wave and tidal power), including infrastructure
Research, survey and educational activities
Coastal defence and flood protection
Land claim
Restructuring of seabed morphology, including dredging and depositing of materials
All activities related to tourism and leisure
Transport - shipping
NACE codes
  • 0000
  • 0000
  • Processing and preserving of fish, crustaceans and molluscs
Related GES component
  • D5; D6/D1
  • D1.1; D1.2; D1.4; D10; D3; D4/D1; D6/D1
  • D11; D6/D1; D7
  • D5
  • D1-B
  • D11; D6/D1
  • D11
  • D6
  • D11; D6/D1; D7
  • D6
  • D6/D1; D8
  • D10
  • D11; D2; D8
Description
Aquaculture activities take place in both the North Sea and Baltic Sea areas, but the type of production differs between the two marine areas. In the North Sea area all aquaculture facilities produce mussels, while all aquaculture facilities in the Baltic Sea area produce fish. All Danish fish producing aquaculture facilities, which are located in the Baltic Sea area, produce rainbow trout. In 2014 there were 7 aquaculture businesses operating at 21 different sites. There assessed effects does not include infrastructure related effects. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019). NACE code 5.02 is applied
In 2014 there were registered 1,956 fishing vessels, of which 1,438 were active. 576 of the active fishery vessels were registered as commercial vessels. The commercial fishery vessels accounted for 98% of total turnover form fishery. Total commercial landings amounted to 741,900 ton in 2014; 318.9 ton of these constituted fish used for consumption, while the remaining 423,000 ton constituted trash fish. Commercial fishery takes place in both the Baltic Sea and North Sea, but the economically most significant share of total fisheries takes place in North/Western part of Jutland, i.e. the North Sea. Some commercial fishery also takes place in the Northeast Atlantic and Arctic marine areas; the employment effect, production value and value added associated with commercial fishery in these areas is not included in the reporting. The reported employment effect, production value and value added refers solely to commercial fishery. Based on existing data, it is not possible to assess the economic value of recreational fisheries attributable to marine areas. Annual turnover related to recreational fisheries is estimated to be approximately 390 million EUR, and the employment effect of recreational fisheries is estimated to be 2,473 jobs; there are no estimated of the value-added related to recreational fisheries. The estimates includes both direct and indirect effects, and encompass all recreational fisheries independent of whether it takes place in marine or fresh waters. Consequently, the estimates cannot be used in an assessment of the economic effects of recreational fisheries in marine waters, and the estimated value is not included in the reporting. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019). NACE code 5.01 is applied
Ports constitute a component of marine transport infrastructure. In 2014 the number of ports in the Baltic Sea part of the Danish marine area was 43.The assessment includes ports with an annual minimum cargo handeling of 50,000 ton. The total amount of cargo going through the Danish Baltic Sea ports was 60,694,000 ton, and in terms of passenger transport, there were 17,854 passengers embarking/disembarking in the 43 Baltic Sea ports. Data is not available for assessing the employment effect, production value and value added related to marine transport infrastructure.
In 2014 there were 100 fish processing businesses, and the majority of these was located in the vicinity of larger fishing ports in the northern/western part of Jutland. Total production in 2014 was 418,000 ton, of which 170,000 ton represented fish for consumption, while 248,000 ton was fish for industrial use. The Danish fish processing industry process and resell fish and fish products to both the Danish and international market. Danish fish import and export has traditionally be large, and only a share of the fish processed in the Danish fish processing industry originates from the Danish marine areas. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
Hunting for birds, eg. ducks and geese, is the predominant hunting activity in Danish marine waters. There is no hunting after marine mammals in Danish marine areas. Data is not available for assessing the employment effect, production value and value added related to hunting and collection for other purposes.
The Ministry of Environment and Food has registered a seaweed production of 10 ton in 2014 and 1 ton in 2015; the registered production taking place to compensate for nitrogen and phosphorous emissions from aquaculture. Statistics Denmark has not registered any businesses related to seaweed production, but several businesses has been granted permission to establish seaweed production. Several applications regarding establishment of seaweed production is being reviewed; all related to the establishment of marine gardens for recreative use. The current extent of seaweed production in Danish marine areas is negligible, and data is not available for assessing the employment effect, production value and value added related to marine plant harvesting.
In 2014 a total of 6.8 mio. m3 of sand, gravel, pebble etc. was extracted from the Danish marine areas. 4.5 mio. m3 was extracted in the North Sea area, while the remaining 2.3 mio. m3 was extracted in the Baltic Sea area. Data is not available for assessing the production value and value added of activities related to extraction of sand, gravel, pebble etc. from the Danish Marine areas. The extracted amounts of resources are assessed separately for the North Sea and Baltic Sea areas, but the employment effect is assessed on a national level. Accordingly, the Marine reporting unit is DK-Total.
The Navy and the Marine Home Guard undertake a number of activities in the Danish marine areas, eg. rescue operations and environmental surveillance, but they also engage in activities taking place outside Danish waters. Accordingly, only part of the value related to Navy and Marine Home Guard activities can be ascribed to Danish marine areas. Data is not available for assessing the employment effect, production value and value added of security and defence related activities.
Cables for transmission of electricity and for telecommunication represents important infrastructure component. Energinet has produced a map over electricity cables in Danish marine areas, but no such official map exists for communications cables. Cables affect other uses of the marine territory as there is a 200 m protection zone around cables. Data is not available for assessing the employment effect, production value and value added related to transmission of electricity and communications (cables).
Total off-shore wind energy production capacity in 2014 was 1,271 MW, equivalent to approximately 25% of total wind energy production capacity in Denmark. Production capacity in the North Sea was 794 MW, and the capacity in the Baltic Sea area was 477 MW. Off-shore wind farms account for approximately 40% of total wind energy production. Capacity expansions through the establishment of new large scale off-shore wind farms are planned. Data is not available for assessing the value added of renewable energy generation. The data regarding employment and production value pertains to 2012, and includes off-shore wind and wave energy production. The estimated employment and production value refer to the value-chain for off-shore wind and wave energy, indicating that indirect effects are included. This means that the values are not directly comparable to values restricted to encompass direct effects. Production capacity is assessed separately for the North Sea and the Baltic Sea areas, but the economic effects are only assessed at the national level, implying that DK-Total is the relevant Marine Reporting Unit. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
Marine areas are assumed to represent significant value in terms of research and education due to the position that the marine environment and maritime industries assume as scientific disciplines and research areas. Data is not available for assessing the employment effect, production value and value added of education and research activities related to marine areas.
In an analysis commissioned jointly by the Ministry of Food and Environment and the Ministry of Energy, Utilities and Climate it is concluded that flood and erosion protection has been established in the areas where the demand is greatest, but it remains to be assessed whether the level of protection is sufficient. The most cost-efficient measure is identified to be nourishment with sand. A hedonic house price study suggests that sand nourishment has a positive effect on house prices. Data for assessing the employment effect, production value and value added of coastal defence and flood protection related activities is not available.
In the past, there are numerous examples of land claim projects. Land claim continues to take place, and a recent example is a project in the Copenhagen Harbour area, where 100 ha was claimed; 60% of the soil used here constituted contaminated soil, which had to be encapsulated. Data for assessing the employment effect, production value and value added of land claim activities is not avilable.
Approximately 4,500,000 m3 of marine sediment is being dredged and deposited in Denmark every year. Data is not available for assessing the employment effect, production value and value added of dredging and depositing activities.
In the Danish context coastal tourism is defined as tourism activities taking place outside the 4 largest cities in Denmark. Not all coastal tourism activities takes place in marine areas. Coastal tourism account for approximately 30% of total tourism spending as well as tourism related value-added in Denmark. The reported employment effect of coastal tourism include both direct and indirect effects. Data is not available for assessing the employment effect, production value and value added related to recreational use of marine areas. Accordingly, the reported numbers solely refer to the economic effects of coastal tourism. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
The shipping industry is the most important export sector in Denmark. The shipping industry is international, implying that a large share of the activities in the industry takes place outside the Danish marine areas. Based on existing data it is not possible to determine the share of activities, which can be ascribed specifically to Danish marine areas, but presumably it is only a minor share of the assessed value that can be ascribed to Danish marine areas. The intensity of shipping is quite high in the Danish marine areas, particularly in Kattegat, which belongs to the Baltic Sea. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
Employment (direct *1000 FTE)
0.103
0.28
3.028
0.34
11.0
39.8
12.623
Production value (€ million)
60.9
32.8
2290.4
4286.0
3777.1
27055.6
Value added (€ million)
9.0
12.6
321.5
1165.3
4862.0
Related pressures
Related indicators
Related ecosystem services
Cost of degradation: description
Cost of degradation: approach
Ecosystem services
Thematic
Cost of degradation: type
Cost of degradation: results
Currently, limited availability of data and lack of baseline scenario calculations (i.e. “Business as usual (BAU)”) implies that it is not possible to assess the value of changes in the provision of marine ecosystem services between the BAU and the Good Ecological Status (GES) scenarios. Knowledge on how to link non-market valuation results to MSFD descriptors is also limited in most cases, implying that the value cannot be assessed using more thematic approaches where costs of degradation are assessed with reference to environmental themes. Accordingly, it is currently not possible to conduct a comprehensive assessment of the cost of marine degradation. Two previous studies conclude that a relatively high amount of ecosystem service valuation studies have been conducted in the context of recreation, and several of these refer to the Danish context. One of the studies is a Travel Cost study conducted throughout all the countries around the Baltic Sea, assessing the value of recreational visits to coastal areas. For Denmark the value of a visit to the coast is estimated to 31 EUR, but as it only reflects the recreational value of coastal areas in their current state it cannot be used to assess the value of changes in the quality of the marine environment. One of the other studies focus more generally on recreation, and while it includes coastal areas it cannot be used to assess the value of changes in the marine environment as the model does not reflect differences in water quality changes. None of the conducted studies can be used to assess the costs of degradation in terms of recreation, but they serve to indicate that the recreational values associated with marine areas are significant.
Currently, limited availability of data and lack of baseline scenario calculations (i.e. “Business as usual (BAU)”) implies that it is not possible to assess the value of changes in the provision of marine ecosystem services between the BAU and the Good Ecological Status (GES) scenarios. Knowledge on how to link non-market valuation results to MSFD descriptors is also limited in most cases, implying that the value cannot be assessed using more thematic approaches where costs of degradation are assessed with reference to environmental themes. Accordingly, it is currently not possible to conduct a comprehensive assessment of the cost of marine degradation. Two previous studies has concluded that the best basis for linking valuation results to descriptors is found for the theme Eutrophication. For Denmark, one study has been identified which may be relevant in relation to assessing the cost of degradation in the context of eutrophication. The study is a stated preference valuation study conducted in all countries around the Baltic Sea, and it assess peoples Willingness-to-pay (WTP) for improving the environmental status of the Baltic Sea to GES by 2040. For Denmark, the WTP is estimated to be in the interval 29-37 EUR (2015) per person per year. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019). One study is considered to represent a too fragile foundation for assessment costs of degradation, but it may serve as an indicator of the magnitude of the eutrophication related costs associated with not attaining GES.
Related indicators

NE Atlantic: Greater North Sea

Marine reporting unit
  • ANS-DK-TOTAL
  • ANS-DK-TOTAL
  • ANS-DK-TOTAL
  • ANS-DK-TOTAL
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
  • DK-TOTAL-part-ANS
Feature
Aquaculture - marine, including infrastructure
Fish and shellfish harvesting (professional, recreational)
Extraction of oil and gas, including infrastructure
Transport infrastructure
Fish and shellfish processing
Hunting and collecting for other purposes
Marine plant harvesting
Extraction of minerals (rock, metal ores, gravel, sand, shell)
Military operations (subject to Article 2(2))
Transmission of electricity and communications (cables)
Renewable energy generation (wind, wave and tidal power), including infrastructure
Research, survey and educational activities
Coastal defence and flood protection
Land claim
Restructuring of seabed morphology, including dredging and depositing of materials
All activities related to tourism and leisure
Transport - shipping
NACE codes
  • 0000
  • 0000
  • Processing and preserving of fish, crustaceans and molluscs
Related GES component
  • D5; D6/D1
  • D1.1; D1.2; D1.4; D10; D3; D4/D1; D6/D1
  • D11; D8
  • D11; D6/D1; D7
  • D1-B
  • D11; D6/D1
  • D11
  • D6
  • D11; D6/D1; D7
  • D6
  • D6/D1; D8
  • D10
  • D11; D2; D8
Description
Aquaculture activities take place in both the North Sea and Baltic Sea areas, but the type of production differs between the two marine areas. In the North Sea area all aquaculture facilities produce mussels, while all aquaculture facilities in the Baltic Sea area produce fish. There are 11 mussel production facilities in the Danish part of the North Sea area; all placed in the Limfjord. The production primarily consists of blue-mussels. The production of mussels have been developed over the past 10-15 years, and there is potential for increasing the production. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 24 June 2019). NACE code 5.02 is applied
In 2014 there were registered 1,956 fishing vessels, of which 1,438 were active. 576 of the active fishery vessels were registered as commercial vessels. The commercial fishery vessels accounted for 98% of total turnover form fishery. Total commercial landings amounted to 741,900 ton in 2014; 318.9 ton of these constituted fish used for consumption, while the remaining 423,000 ton constituted trash fish. Commercial fishery takes place in both the Baltic Sea and North Sea, but the economically most significant share of total fisheries takes place in North/Western part of Jutland, i.e. the North Sea. Some commercial fishery also takes place in the Northeast Atlantic and Arctic marine areas; the employment effect, production value and value added asso1.289ciated with commercial fishery in these areas is not included in the reporting. The reported employment effect, production value and value added refers solely to commercial fishery. Based on existing data, it is not possible to assess the economic value of recreational fisheries attributable to marine areas. Annual turnover related to recreational fisheries is estimated to be approximately 390 million EUR, and the employment effect of recreational fisheries is estimated to be 2,473 jobs; there are no estimated of the value-added related to recreational fisheries. The estimates includes both direct and indirect effects, and encompass all recreational fisheries independent of whether it takes place in marine or fresh waters. Consequently, the estimates cannot be used in an assessment of the economic effects of recreational fisheries in marine waters, and the estimated value is not included in the reporting. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019). NACE code 5.01 is applied
All activities related to extraction of oil and natural gas takes place in the North Sea, where there are 19 different oil and gas fields with a total of 55 offshore installations. The extraction of oil and gas in the North Sea began in 1972, and production peaked in 2004. Since 2004 production has been about halved. In 2014 the extraction of oil amounted to 9.6 million m3, and the amount of extracted gas was 4.5 million Nm3. The production of oil as well as gas is expected to decline in the upcoming years due to renovation of existing facilities and postponed commissioning of a new field. After that production is expected to increase again and stabilise around the current level. In the period 2020-2032 Denmark is expected to be a net exporter of oil, and there is also expected to be a net-export of natural gas in the period 2021-2035. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
Ports constitute a component of marine transport infrastructure. In 2014 the number of ports in the North Sea area was 30. The assessment includes ports with an annual minimum cargo handeling of 50,000 ton. The total amount of cargo going through the Danish North Sea ports was 31,043,000 ton. In terms of passenger transport, there were 18,428 passengers embarking/disembarking in the 30 Norths Sea ports. Data is not available for assessing the employment effect, production value and value added related to marine transport infrastructure.
In 2014 there were 100 fish processing businesses, and the majority of these was located in the vicinity of larger fishing ports in the northern/western part of Jutland. Total production in 2014 was 418,000 ton, of which 170,000 ton represented fish for consumption, while 248,000 ton was fish for industrial use. The Danish fish processing industry process and resell fish and fish products to both the Danish and international market. Danish fish import and export has traditionally be large, and only a share of the fish processed in the Danish fish processing industry originates from the Danish marine areas. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
Hunting for birds, eg. ducks and geese, is the predominant hunting activity in Danish marine waters. There is no hunting after marine mammals in Danish marine areas. Data is not available for assessing the employment effect, production value and value added related to hunting and collection for other purposes.
The Ministry of Environment and Food has registered a seaweed production of 10 ton in 2014 and 1 ton in 2015; the registered production taking place to compensate for nitrogen and phosphorous emissions from aquaculture. Statistics Denmark has not registered any businesses related to seaweed production, but several businesses has been granted permission to establish seaweed production. Several applications regarding establishment of seaweed production is being reviewed; all related to the establishment of marine gardens for recreative use. The current extent of seaweed production in Danish marine areas is negligible, and data is not available for assessing the employment effect, production value and value added related to marine plant harvesting.
In 2014 a total of 6.8 mio. m3 of sand, gravel, pebble etc. was extracted from the Danish marine areas. 4.5 mio. m3 was extracted in the North Sea area, while the remaining 2.3 mio. m3 was extracted in the Baltic Sea area. Data is not available for assessing the production value and value added of activities related to extraction of sand, gravel, pebble etc. from the Danish Marine areas. The extracted amounts of resources are assessed separately for the North Sea and Baltic Sea areas, but the employment effect is assessed on a national level. Accordingly, the Marine reporting unit is DK-Total.
The Navy and the Marine Home Guard undertake a number of activities in the Danish marine areas, eg. rescue operations and environmental surveillance, but they also engage in activities taking place outside Danish waters. Accordingly, only part of the value related to Navy and Marine Home Guard activities can be ascribed to Danish marine areas. Data is not available for assessing the employment effect, production value and value added of security and defence related activities.
Cables for transmission of electricity and for telecommunication represents important infrastructure component. Energinet has produced a map over electricity cables in Danish marine areas, but no such official map exists for communications cables. Cables affect other uses of the marine territory as there is a 200 m protection zone around cables. Data is not available for assessing the employment effect, production value and value added related to transmission of electricity and communications (cables).
Total off-shore wind energy production capacity in 2014 was 1,271 MW, equivalent to approximately 25% of total wind energy production capacity in Denmark. Production capacity in the North Sea was 794 MW, and the capacity in the Baltic Sea area was 477 MW. Off-shore wind farms account for approximately 40% of total wind energy production. Capacity expansions through the establishment of new large scale off-shore wind farms are planned. Data is not available for assessing the value added of renewable energy generation. The data regarding employment and production value pertains to 2012, and includes off-shore wind and wave energy production. The estimated employment and production value refer to the value-chain for off-shore wind and wave energy, indicating that indirect effects are included. This means that the values are not directly comparable to values restricted to encompass direct effects. Production capacity is assessed separately for the North Sea and the Baltic Sea areas, but the economic effects are only assessed at the national level, implying that DK-Total is the relevant Marine Reporting Unit. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
Marine areas are assumed to represent significant value in terms of research and education due to the position that the marine environment and maritime industries assume as scientific disciplines and research areas. Data is not available for assessing the employment effect, production value and value added of education and research activities related to marine areas.
In an analysis commissioned jointly by the Ministry of Food and Environment and the Ministry of Energy, Utilities and Climate it is concluded that flood and erosion protection has been established in the areas where the demand is greatest, but it remains to be assessed whether the level of protection is sufficient. The most cost-efficient measure is identified to be nourishment with sand. A hedonic house price study suggests that sand nourishment has a positive effect on house prices. Data for assessing the employment effect, production value and value added of coastal defence and flood protection related activities is not available.
In the past, there are numerous examples of land claim projects. Land claim continues to take place, and a recent example is a project in the Copenhagen Harbour area, where 100 ha was claimed; 60% of the soil used here constituted contaminated soil, which had to be encapsulated. Data for assessing the employment effect, production value and value added of land claim activities is not avilable.
Approximately 4,500,000 m3 of marine sediment is being dredged and deposited in Denmark every year. Data is not available for assessing the employment effect, production value and value added of dredging and depositing activities.
In the Danish context coastal tourism is defined as tourism activities taking place outside the 4 largest cities in Denmark. Not all coastal tourism activities takes place in marine areas. Coastal tourism account for approximately 30% of total tourism spending as well as tourism related value-added in Denmark. The reported employment effect of coastal tourism include both direct and indirect effects. Data is not available for assessing the employment effect, production value and value added related to recreational use of marine areas. Accordingly, the reported numbers solely refer to the economic effects of coastal tourism. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
The shipping industry is the most important export sector in Denmark. The shipping industry is international, implying that a large share of the activities in the industry takes place outside the Danish marine areas. Based on existing data it is not possible to determine the share of activities, which can be ascribed specifically to Danish marine areas, but presumably it is only a minor share of the assessed value that can be ascribed to Danish marine areas. The intensity of shipping is quite high in the Danish marine areas, particularly in Kattegat, which belongs to the Baltic Sea. The conversion between DKK and EUR is based on an exchange rate of 746.6 (Danmarks Nationalbank, 20 June 2019).
Employment (direct *1000 FTE)
0.0035
1.289
1.872
3.028
0.34
11.0
39.8
12.623
Production value (€ million)
1.3
297.2
5531.7
2290.4
4286.0
3777.1
27055.6
Value added (€ million)
0.9
184.7
4902.2
321.5
1165.3
4862.0
Related pressures
Related indicators
Related ecosystem services
Cost of degradation: description
Cost of degradation: approach
Cost of degradation: type
Cost of degradation: results
Related indicators