Act n°888 on carbon dioxide tax

The Denmark carbon tax (official name: CO2-afgift) was introduced to increase the profile of climate change and provide an economic incentive to consume less energy from carbon-intensive sources. It was introduced gradually as part of a larger environmental tax package, which includes energy taxes and a sulfur tax, as well as subsidies for green investments. The tax complements the EU ETS, covering much of the fuel-use not captured under the ETS. The tax rate for each fuel is calculated based on volume, weight or calorific value of fuel used, with rates for each fuel set to align with the nominated /tCO2-e price. The tax is recalculated annually to take inflation into account.

Source: World Bank Carbon Pricing Dashboard

Want to know more about this policy ? Learn more