Denmark’s minister of taxation has signed a new  Executive Order No. 1504/2024 on 10 December 2024, offering tax refunds for CO2 capture and storage facilities.

The order aims to simplify the refund process and promote carbon capture initiatives.

The order clarifies the scope of the tax refund and offers detailed definitions for key terms relevant to CO2 capture and storage operations. It establishes a clear framework for qualifying agreements and sets out the contract formation requirements for businesses aiming to receive the refund.

Additionally, the Executive Order specifies the invoicing requirements for agreements related to the supply of heating or cooling services, ensuring transparency and accountability.

To enforce compliance, the order also outlines penalties for providing false or misleading information, concealing information during tax control procedures, or violating invoicing regulations. This Executive Order will come into force on 1 January 2025.