In just a few years, Europe and Denmark have lost decisive ground in the global competition for the green technologies of the future, while China has taken over the leading position in a number of key areas. This is evident from the analysis A free and secure Denmark in a strong Europe, which Danish Business Council published in connection with the Green Summit 2026 this week. The report warns of consequences for both the economy, security and green transition if the development continues. This is stated by Danish Business Council in a press release.
According to the analysis, China currently accounts for 93 percent of the world's patent applications within renewable energy, while Europe's share is decreasing. At the same time, China accounts for 69 percent of all issued patents within environmental technology against 3 per cent. in 2000. Within solar energy, China has 52 per cent. of the patents and 48 per cent. within energy storage. The EU is at 22 per cent. and 19 per cent respectively.
Danish Business Association points out that the development has happened faster and more extensively than many are aware of, and that it requires political action to reverse the trend.
- If we want to win the race for the green technologies of the future, we must dare to learn from those who manage to turn innovation into industry. For years, China has used targeted incentives to get companies to invest in development and upscaling – including an R&D deduction of 200 per cent. It is not about ideology, but about competitiveness, says Ulrich Bang, deputy director of Climate, Energy, Environment & Construction at the Confederation of Danish Industry.
Chinese progress not accidental
According to the organization, in its 14th five-year plan, China has prioritized innovation-driven development and green transition with strong economic incentives. Private R&D investments today account for over 2 percent of GDP in China, while the level in the EU is around 1.2 percent and in Denmark 1.7 percent.
- China's significant progress is not accidental. In the country's 14th five-year plan, innovation-driven development and green transition are prioritized, supported by strong incentives – including an R&D deduction of 200 percent. This is clearly reflected in the patent statistics, says Ulrich Bang.
Danish Business highlights that Denmark continues to have strong positions within, among other things, energy technology and biosolutions, but that this position can only be maintained if it becomes more attractive to invest in development, testing, demonstration and upscaling in Denmark. The organization assesses that higher investments, tax incentives and long-term strategies are linked to more patents and increased technological strength.
- Innovation has become geopolitics. Private R&D investments today account for over 2 percent of GDP in China, while the EU is around 1.2 percent and Denmark is at 1.7 percent. The figures point to a clear connection: Higher investments, strong tax incentives and long-term strategies create more patents – and can eventually lead to technological dominance. The crucial question everyone in Denmark should ask themselves is what are we going to do about it?, says Ulrich Bang.
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