In line with Denmark’s Rule of Climate law, Danish companies have to pay for Carbon Dioxide pollution.
With Denmark’s goal to deliver a 70% reduction in greenhouse gases by 2030, The Danish government will start by imposing a Carbon tax. The government has three prices for pollution:
- “Companies that do not pay for their pollution in the EU quota system must pay DKK 750 ($109) per tonne of CO2 they emit. This applies to the vast majority of companies in the industry sector.
- “Companies that do not pay for their pollution in the EU quota system must pay DKK 750 ($109) per tonne of CO2 they emit. This applies to the vast majority of companies in the industry sector.
- “For an isolated group of companies that emit the most CO2, there is a reduced price of DKK 100 ($15) per tonne of CO2. It also comes on top of the EU quota price. This applies, for example, to the Aalborg Portland cement factory but also to the country’s brickworks, Rockwool and glass manufacturers such as Holmegaard.
“However, the large emitters also get a discount in the EU, so the actual cost of quotas here is around DKK 300 ($44) per tonne.
The Carbon tax will be imposed on heavy industries and the energy sector. A number of Danish companies in the industry sector currently pay for their pollution and emissions in the European Union quota system, also known as Emissions Trading System (ETS), at USD$87 per tonne, but there are a lot that are exempt from it.
According to the Danish government, the new carbon tax could reduce the nation’s carbon emissions by 3.7 million tonnes per year by 2030. The government also proposed a 7-billion Danish Krone ($1.027 billion) to help companies with the green transition and minimize the risk of these companies moving abroad to pay carbon taxes.
In the fall, CO2 taxes in Agriculture and Transport sectors will follow.
