Denmark will end all new oil and gas exploration in the North Sea, as part of a wider plan to stop extracting fossil fuels by 2050.
Its government also agreed to cancel its latest licensing round on Thursday, which gives firms permission to search for and produce oil and gas, BBC reports.
“We are now putting a final end to the fossil era,” said Denmark’s climate minister.
Greenpeace Denmark described the announcement as a “watershed moment”.
However, the country’s latest licensing round was facing uncertainty, after Total of France pulled out in October, leaving only one other applicant.
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Denmark is currently the largest oil producer in the European Union, although it produces much less than non-EU members Norway or the UK.
It pumped 103,000 barrels a day in 2019, according to analysis by UK oil giant BP
There are 55 drilling platforms on its territory, across 20 oil and gas fields.
“We’re the European Union’s biggest oil producer and this decision will therefore resonate around the world,” Danish climate minister Dan Jorgensen said on Thursday.
The decision will cost Denmark about 13 billion kroner (£1.1bn), according estimates by the energy ministry, though it said this amount was subject to substantial uncertainty.
