Green Tax Reform

Announced as part of Denmark’s 2021 Recovery and Resilience Plan, the Green Tax Reform introduces a more ambitious corporate carbon (CO2) tax. The agreement introduces a CO2 tax rate of 750 DKK/tonne of emitted CO2 in 2030 for companies that fall outside of the European ETS. The agreement also introduces a minimum price ‘floor’ that can come into effect if the European ETS underperforms in reducing emissions. The energy taxes that apply to fossil fuels will change to a total tax up to 750 DKK per tonne of CO2 emitted in 2025.