Denmark’s recovery and resilience – Supported projects: Reforms

Disclaimer: This page exclusively serves information purposes and is not an exhaustive database of projects funded by the Recovery and Resilience Facility. Notably, the map provides a snapshot of projects based on the current status of their implementation. It does not reflect the distribution of the projects funded by the Recovery and Resilience Facility across the different areas within Denmark. The map will be regularly updated to include additional projects and information. The showcase of the projects in this page is without prejudice to any future assessment by the Commission in the context of the verification of the satisfactory fulfilment of milestones and targets pursuant to Regulation (EU) 2021/241 of the European Parliament and of the Council establishing the Recovery and Resilience Facility.

The measure references mentioned below are those contained in the Annex to the Council Implementing Decision approving the Danish Recovery and Resilience Plan and allow for easy identification of the measures

For more info on the projects, please contact the Commission’s representation in Denmark, Trine Koch Jakobsen, European Semester Officer, (Trine [dot] KOCH-JAKOBSENec [dot] europa [dot] eu (Trine[dot]KOCH-JAKOBSEN[at]ec[dot]europa[dot]eu)) or Rikke Uldall, head of press team (Rikke [dot] ULDALLec [dot] europa [dot] eu (Rikke[dot]ULDALL[at]ec[dot]europa[dot]eu)).

Green Tax Reform – Emission taxes on industries

(reference C4.R2 in the Danish Recovery and Resilience Plan)

The energy taxes on industry’s use of fossil fuels were relatively low. This is why, by increasing them, a cost-efficient reduction of greenhouse gases could be provided. With the implementation of this measure, the Danish government has increased the energy tax on the use of fossil fuels with DKK 6/GJ that corresponds to about 100 DKK/ton CO₂. This measure shall raise the fossil energy taxation for all industries equally. Consequently, the existing differentiations in the energy tax rates for companies will be maintained only until 2025, but at a higher level for everyone.

More information can be found on the webpage of the Danish Ministry of Finance here

Green Tax Reform – Expert group to prepare proposals for a CO₂e-tax

(reference C4.R1 in the Danish Recovery and Resilience Plan)

In the context of the Green Tax Reform, an expert group has been established and tasked to present proposals on possible ways to regulate CO₂ emissions. The expert group should detail the advantages and disadvantages of a solution regulating the agricultural sector as well as a CO2 emission tax for that sector or a combination of the two. The work of the expert group includes that the suggested CO₂ emission regulation would support the introduction of new technologies for the industrial sector as well as the agricultural sector. The expert group published its first report on a Green Tax Reform (Part I) in February 2022, focusing on emissions in the industrial sector. A majority in the Danish Parliament entered an agreement that, in its main points, followed the conclusions made by the expert group. The Danish ministry for climate, energy and utilities states on its website that the expert group will publish its final report in the autumn of 2023.

More information can be found on the webpage of the Danish Ministry of Taxation here, here and here

Sustainable road transport - Re-prioritisation of the registration tax of vehicles and low electricity tax on charging electric vehicles

(reference C5.R1 in the Danish Recovery and Resilience Plan)

As part of a bigger green road transport agreement, the Danish Government has put in place a scheme that increases the incentives for consumers to choose zero or low emission vehicles. It was the expectation at the outset that the reform of the registration tax would lead to significant reductions in the CO₂ emissions and that it would contribute to the overall objective to reduce CO₂ emissions by 70%. As part of the agreement, a number of measures have been put in place. The registration tax for zero and low emission cars has been significantly reduced. In addition, the registration tax for all cars has been simplified to make it dependent only on the car’s value and CO₂ emissions. A special scheme ensuring low electricity tax to charge electric cars has been extended up to and including 2030.

More information can be found on the website of the Danish Ministry of Finance here and the related press release can be found here

Digitalisation – Digital Strategy

(reference C6.R1 in the Danish Recovery and Resilience Plan)

The Danish government established an expert group called “digitalisation partnership”, consisting of the main stakeholders of the industry (including business representatives and experts). This expert group analysed the main digital challenges for Denmark and made recommendations on policy, reforms and investments. Based on these recommendations and following political negotiations, the government presented the new Digital Strategy in 2022.

The aim of the measure was to set up a new digital strategy consisting of five sub-reforms with the following objectives:

I. Sub-reform 1 – Strategy for the digital public sector and services of the future: Creating the digital public sector of the future. This shall be achieved by a continuous modernisation of the digital infrastructure meeting the needs of all citizens and businesses while strengthening connectivity.

II. Sub-reform 2 – Strategy for the digital professions and jobs of the future: Securing the digital professions and jobs of the future and supporting growth and export of goods and services by strengthening digitalisation within business and industry.

III. Sub-reform 3 – Framework for innovation, public-private partnerships and use of new technology: Creating better opportunities for co-creation and innovation. This shall be done by using new technologies and public-private partnerships to streamline and improve public digital services, accelerate digital transition of businesses, and support climate change mitigation.

IV. Sub-reform 4 – Framework for a data-driven society: Creating a data-driven society and improving the digitalisation of SMEs, health systems and digital services by promoting better access to data, secure and interoperable data infrastructures, and a digital-ready regulatory framework.

V. Sub-reform 5 – Framework for Denmark fit for a digital future: Creating a framework for Denmark fit for a digital future whilst preserving the best of our society, such as enhancing the cyber- and information security, digital skills and competencies benefitting all citizens, businesses and employees

More information and press releases can be found on the website of the Danish Government (Mette Frederiksen I, 2019-2022) in relation to the Digitalisation Partnership here and in relation to the Digitalisation Strategy here