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Denmark will end all new oil and gas exploration in the North Sea, in fulfillment of its plan to stop extracting fossil fuels by 2050.
Its government also agreed to cancel its latest licensing round on Thursday.
Denmark, which produces much less oil than non-EU members Norway or the UK, is currently the largest producer in the European Union. The country pumped 103,000 barrels a day in 2019. It has 55 drilling platforms on its territory, across 20 oil and gas fields.
According to Danish climate minister Dan Jorgensen, being the European Union's biggest oil producer, Denmark's decision will therefore resonate around the world.
The decision will cost Denmark about $2.1 billion, according to estimates by the energy ministry.
