Denmark has given the green light for the development of two energy islands to help it achieve its renewable energy and climate goals.

The islands will be located in the North Sea and Baltic Sea and will be equipped with 4 GW of wind energy capacity. The North Sea site will be an artificial structure and will have the potential to host up to 10 GW of capacity, the government said.

The plans are part of Denmark’s wider climate initiative and represent a “paradigm” shift away from the development of individual wind farms, according to the country’s Energy ministry. The islands would enable the production of ‘green’ hydrogen on a mass scale, which would help to decarbonise other areas of the Danish economy.

Danish finance minister Nicolai Wammen said: “With the agreement today, Denmark is again at the forefront with the green transition, and at the same time we are paving the way for a green recovery of the economy with some of the largest long-term infrastructure investment ever. We are creating two new energy islands, which means that Denmark is the first country in the world to embark on a whole new era for renewable energy.

“At the same time, we invest significantly in the development of future technologies and take important steps towards a green transformation of the heating sector and industry. I am very proud that we have succeeded in making a broad green agreement that will both get us closer to achieving our climate goals and which in the long-term will create thousands of Danish green jobs.”

The climate plans also include proposals for more charging stations for electric cars, energy efficiency improvements, green energy and biogas. Wind Denmark chief executive Jan Hylleberg said: “The agreement that the Danish parliament's parties have just presented is beautiful, ambitious and visionary and responds to many of the proposals that Wind Denmark has highlighted as particularly important for the restart of the Danish economy and for the fulfilment of our climate goals.

“In this way, it is liberating that the parties to the agreement have the courage and willingness to put Denmark back on the world map as one of the most ambitious countries on behalf of the climate, while at the same time creating the agreement across the country and sectors.”