The Danish Ministry of Taxation has announced the approval of two legislative proposals, L 182 and L 183, on 4 June, 2024. These legislations centre around the implementation of the green tax reforms.
These legislations will be gradually implemented, starting 2025, and full rates will be effective by 2030. When the entire agreement is fully phased in, it will deliver a CO2 reduction of 4.3 million tonnes in 2030.
“In Denmark, we take responsibility and show once again that we are at the forefront of the green transition. It is not always easy to lead the way, but that is exactly what we are doing by passing these bills. That is why I am proud that the government and a broad section of the parties in the Folketing support it,” said Jeppe Bruus Christensen, Taxation Minister of Denmark.
Under the proposed changes, companies outside the scope of the EU Emissions Trading System (EU ETS) will face a CO2 tax of DKK 750 per tonne. However, for those involved in quota-covered space heating, the rate will be halved to DKK 375 per tonne. For companies within the EU ETS framework, the CO2 tax will be set at DKK 375 per tonne. Mineralogical companies, encompassing industries such as cement, brick, metal, and glass, will benefit from a lower rate of DKK 125 per tonne.
“A higher CO2 tax is an important instrument in the work to achieve our climate goals. At the same time, we ensure that it pays to collect and store CO2. Overall, I am very satisfied with that,” he added.
