Denmark proposes uniform CO2 tax for most businesses
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Loading... - Anne Nielsen
- 21 Apr 2022
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The government proposal, entitled Grøn skattereform or Green Tax Reform, was presented by ministers on Wednesday.
“The ambitious CO2 tax which we are now presenting is… an important step on the way to fulfilling our climate targets. We must phase out gas and other fossil fuels and replace them with green energy,” climate, energy and critical supplies minister Dan Jørgensen said in a press statement.
The government claims that the measures included in the plan will reduce CO2 emissions by 3.7 million tonnes by 2030.
That represents around one third of the 9.4 million tonnes needed to hit the national target of a 70 percent reduction of total emissions by the end of the current decade.
Specifically, the government proposes a CO2 tax of 750 kroner per tonne of emission. Companies covered by an EU quota system will however receive a deduction and will only be required to pay half of the full amount, 375 kroner per tonne.
According to a government expert advisory board, the five largest CO2-emitting companies in Denmark are responsible for over 40 percent of the country’s industrial emissions.
A number of these companies could be due for additional deductions to the CO2 tax.
Companies in the “mineralogical processing” sector are to be given further discounts on the tax and will only pay 100 kroner per tonne of emissions, according to the proposal. Companies covered by this definition include Aalborg Portland and Rockwool.
“The tax for mineralogical processes etcetera is related to this sector being subject to competition and there is therefore a risk of relocation abroad due to a large tax increase,” the government writes. Read More...
