Promotion in Denmark

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Updated: 04.01.2019

Author: Karl Wikberg

Summary of support schemes

  • Tax regulation mechanism. Companies producing, processing, possessing, receiving or dispatching energy products are obliged to pay a defined amount of tax. This amount is reduced for fuels blended with biofuels.
  • Biofuels quota. The main Support schemes for renewable energy sources used in transport is a quota obligation. Companies importing or producing petrol, gas or diesel fuels are obliged to ensure that biofuels make up a defined percentage of the company’s total annual fuel sales.
  • Price based mechanism. Selling of biogas for transport purposes is supported through a direct premium tariff.

Technologies

The tax regulation mechanism and the quota obligation apply to biofuels only. Only biogas is eligible for a direct premium tariff.

Statutory provisions

    • Act 674/2011 (Lov om bæredygtige biobrændstoffer og om reduktion af drivhusgasser (biobrændstofloven)– Act on Sustainable Biofuels and the Reduction of Greenhouse Gases (Biofuels Act))
    • Act 321/2011 (Bekendtgørelse af lov om kuldioxidafgift af visse energiprodukter – Act on the Carbon Dioxide Tax on Certain Energy Products)
    • Act 1118/2014 (Bekendtgørelse af lov om energiafgift af mineralolieprodukter m.v. – Act on the Energy Tax on Mineral Oil Products and the like)
    • VE-Lov (Lov om fremme af vedvarende energi No. 1288/2016 – Law on the Promotion of Renewable Energy)

    Denmark

    Further information