On Friday 25 October, the European Commission authorised, under EU State aid rules, a €724 million Danish scheme to lower the rate of a new greenhouse gas (GHG) emissions tax for certain companies.
This measure aims to prevent the risk of carbon leakage when companies relocate their production outside the EU to countries with less ambitious climate policies, leading to an increase in greenhouse gas emissions on a global scale.
As part of a wider ‘green tax reform’ adopted in 2022,...