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, Denmark has decided to introduce a tax on greenhouse gas emissions from activities covered by the EU Emissions Trading System Directive (‘CO2 emissions tax’), in line with the goal of reducing Denmark’s emissions by 70% in 2030 compared to 1990 levels. The tax is intended to further encourage the reduction of CO2 emissions in Denmark. (Original version in French by Lionel Changeur)