Klima-, Energi- og Forsyningsudvalget 2019-20
KEF Alm.del Bilag 144
Offentligt
Annex 8
to
Denmark’s First
Integrated National Energy and Climate Plan
pursuant to Articles 3-11 and ANNEX I of Regulation 2018/1999[Governance]
on the GENERAL FRAMEWORK FOR INTEGRATED
NATIONAL ENERGY AND CLIMATE PLANS
Part 1
General framework
SECTION A: NATIONAL PLAN
3.
3.1.
POLICIES AND MEASURES
Dimension Decarbonisation
3.1.1. GHG emissions and removals
i. Policies and measures to achieve the target set under Regulation 2018/842[ESR]
as referred to in 2.1.1 and policies and measures to comply with Regulation 2018/841[LULUCF],
covering all key emitting sectors and sectors for the enhancement of removals,
with an outlook to the long-term vision and goal to become a low emission economy and
achieving a balance between emissions and removals in accordance with the Paris Agreement.
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Content
4
4.1
POLICIES AND MEASURES ..................................................................................................................................................... 3
C
LIMATE POLICY AND THE POLICY
-
MAKING PROCESS
...................................................................................................................... 3
4.1.1
National action plans ........................................................................................................................................................ 4
4.1.2
Denmark's Climate Policy ................................................................................................................................................. 7
4.1.2.1
4.1.2.2
4.1.2.3
The 2018 Energy Agreement ............................................................................................................................................................ 7
Additional measures in 2019 ............................................................................................................................................................ 8
Denmark’s climate policy and the EU climate policy
...................................................................................................................... 9
4.2
4.3
L
EGISLATIVE ARRANGEMENTS AND ENFORCEMENT AND ADMINISTRATIVE PROCEDURES
................................................................ 9
P
OLICIES AND MEASURES AND THEIR EFFECTS
............................................................................................................................... 11
4.3.1
Allowance regulation - Emission Trading Scheme ......................................................................................................... 15
4.3.2
The Kyoto Protocol mechanisms ..................................................................................................................................... 18
4.3.3
Taxes and duties .............................................................................................................................................................. 19
4.3.3.1 CO
2
, CH
4
, and N
2
O - taxes and duties relevant to these emissions ................................................................................................ 20
4.3.3.1.1
Energy.................................................................................................................................................................................. 20
4.3.3.1.2
Transport .............................................................................................................................................................................. 25
4.3.3.1.3
The household sector ........................................................................................................................................................... 27
4.3.3.2 HFCs, PFCs, and SF
6
- taxes and duties relevant to these emissions ............................................................................................. 27
4.3.3.3 Tax on methane emissions from natural gas fired power plants - equal in terms of CO
2
equivalents to the CO
2
tax. .................... 27
4.3.4
4.3.5
The National Green Climate Fund .................................................................................................................................. 29
Energy (Fuel Combustion, including Transport, and Fugitive Emissions from Fuels)................................................... 32
4.3.5.1 CO
2
................................................................................................................................................................................................. 32
4.3.5.1.1
The allowance regulation relevant to the energy sector ....................................................................................................... 34
4.3.5.1.2
Energy and CO
2
taxes .......................................................................................................................................................... 35
4.3.5.1.3
Combined heat and power ................................................................................................................................................... 35
4.3.5.1.4
Renewable energy ................................................................................................................................................................ 36
4.3.5.1.5
Fuel conversion from coal to natural gas ............................................................................................................................. 38
4.3.5.1.6
Research and development .................................................................................................................................................. 38
4.3.5.1.7
Energy savings ..................................................................................................................................................................... 40
4.3.5.1.8
Specific measures in the business sector (Fuel combustion in Manufacturing Industries and Construction,
Commercial/Institutional and Agriculture, Forestry and Fisheries) .......................................................................................................... 43
4.3.5.1.9
Specific measures in the Transport sector ............................................................................................................................ 47
4.3.5.1.10 Specific measures in the residential sector ........................................................................................................................... 51
4.3.5.2 CH
4
(methane) ................................................................................................................................................................................ 57
4.3.5.3 N
2
O (nitrous oxide) ........................................................................................................................................................................ 57
4.3.6
Industrial Processes and Product Use (IPPU) ............................................................................................................... 57
4.3.6.1 CO
2
- Cement production ............................................................................................................................................................... 57
4.3.6.2 N
2
O - Production of nitric acid ....................................................................................................................................................... 58
4.3.6.3 HFCs, PFCs and SF
6
- Consumption of these substances............................................................................................................... 58
4.3.6.3.1
Taxes on HFCs, PFCs and SF
6
............................................................................................................................................. 59
4.3.6.3.2
Regulation of HFCs, PFCs and SF
6
..................................................................................................................................... 59
4.3.7
Agriculture ...................................................................................................................................................................... 62
4.3.7.1 CH
4
(methane) ................................................................................................................................................................................ 63
4.3.7.1.1
Biogas .................................................................................................................................................................................. 64
4.3.7.2 N
2
O (nitrous oxide) ........................................................................................................................................................................ 65
4.3.7.2.1
Action Plans for the Aquatic Environment I and II and Action Plan for Sustainable Agriculture ....................................... 66
4.3.7.2.2
The Ammonia efforts ........................................................................................................................................................... 67
4.3.7.2.3
Action Plan for the Aquatic Environment III and the agreements of Green Growth ........................................................... 68
4.3.7.2.4
Environmental Approval Act for Livestock Holdings ......................................................................................................... 69
4.3.7.2.5
Political Agreement on a Food and Agricultural Package and the political Agreement on Targeted Regulation and
subsequent agreements.............................................................................................................................................................................. 70
4.3.7.2.6
Subsidy for conversion of arable land on organic soils to nature ......................................................................................... 71
4.3.7.2.7
Political Agreement on Nature ............................................................................................................................................. 72
4.3.7.2.8
Bio-refining ......................................................................................................................................................................... 72
4.3.7.2.9
Promotion of precision agriculture....................................................................................................................................... 72
4.3.8
4.3.8.1 CO
2
–
emissions and removals in LULUCF under the Climate Convention .................................................................................. 74
4.3.8.2 CO
2
–
emissions, removals and credits from Activities under Articles 3.3 and 3.4 of the Kyoto Protocol ..................................... 78
4.3.8.2.1
Article 3.3 ............................................................................................................................................................................ 78
4.3.8.2.2
Article 3.4 ............................................................................................................................................................................ 79
LULUCF (Land-Use, Land-Use Change and Forestry) ................................................................................................. 74
4.3.9
Waste ............................................................................................................................................................................... 85
CH
4
(methane) ................................................................................................................................................................................ 85
4.3.9.1
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4 Policies and measures
- including those in accordance with Article 2 of the Kyoto
Protocol, and domestic and regional programmes and/or
legislative arrangements and enforcement and
administrative procedures
4.1
C
LIMATE POLICY AND THE POLICY
-
MAKING PROCESS
Since the Brundtland Commission's report,
“Our
Common Future”, from 1987,
Denmark's climate policy has developed in collaboration with the different sectors of
society, and in line with international climate policy, and results from related
scientific research.
Thus, since the end of the 1980s a considerable number of measures to reduce
emissions of greenhouse gases have been implemented.
Some of the measures have been implemented with reduction of greenhouse gas
emissions as the main objective, others were aimed at achieving environmental
improvements for society in general, e.g. by introducing environmental taxes and
involving the public in the debate and decisions concerning the environment.
Since 2001, focus has also been on efforts to reduce emissions and meet the near-
term international greenhouse gas emission reduction targets
–
i.e. for 2008-2012
under the first commitment period of the Kyoto Protocol and the EU Burden Sharing,
for 2013-2020 under the second commitment period of the Kyoto Protocol and the
EU Effort Sharing Decision and for 2021-2030 under the Paris Agreement and the
EU burden sharing of the EU National Determined Contribution through the EU
Effort Sharing Regulation
–
with view to meet the long-term target: a climate-
neutral society by 2050.
Denmark’s international climate targets are
described in Box 4.1.
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B
OX
4.1 I
NTERNATIONAL CLIMATE TARGETS
Since 1990 Denmark has undertaken or committed itself to several targets with respect to reducing
greenhouse gas emissions:
•
In accordance with the Climate Convention, to reduce total emissions of greenhouse gases in
Denmark, Greenland and the Faroe Islands to the 1990 level by 2000. This target was achieved for
total emissions excluding the land-use sector (LULUCF). Due to windfalls total emissions
including LULUCF brought the Realm to within 1% of the target.
•
As a contribution to stabilisation in the EU, Denmark committed itself to reducing CO
2
emissions
in 2000 by 5% compared to the adjusted level for 1990. This target was fulfilled.
•
In relation to the Kyoto Protocol, for the period 2008-2012 the EU committed itself to reducing
emissions of greenhouse gases on average to 8% below the level in the base year; 1990 for CO
2
,
methane, and nitrous oxide and either 1990 or 1995 for industrial greenhouse gases. Denmark
committed itself to a reduction of 21% as an element of the burden-sharing agreement within the
EU. Both Denmark and the EU reached these targets.
•
In relation to the period 2013-2020, the EU reached an agreement in December 2008 on a climate
and energy package and on a regulation on CO
2
from new vehicles. According to this package the
EU is committed to reducing its overall emissions to at least 20% below 1990 levels by 2020.
Under the EU burden sharing of the joint EU target for 2020, Denmark is committed to a reduction
in non-ETS emissions in the period 2013-2020, rising to 20% by 2020 relative to 2005. The EU is
also committed to reducing its ETS emissions to 21% below 2005 levels by 2020. The EU has also
set itself the target of increasing the share of renewables in energy use to 20% by 2020. Under
burden sharing for this EU target, Denmark is committed to reaching a 30% share of renewables in
energy use by 2020.
•
In relation to the period 2021-2030,
t
he European Council agreed on the 2030 climate and energy
framework in October 2014 and endorsed four important targets of which targets for energy
efficiency and renewable energy were revised in 2018: (1) a binding EU target of at least 40% less
greenhouse gas emissions by 2030, compared to 1990, (2) a target, binding at EU level, of at least
32% renewable energy consumption in 2030, (3) an indicative target at EU level of at least 32.5%
improvement in energy efficiency in 2030 and (4) support the completion of the internal energy
market by achieving the existing electricity interconnection target of 10% as a matter of urgency
no later than 2020, in particular for the Baltic states and the Iberian Peninsula, and the objective of
arriving at a 15% target by 2030. The agreement on the 2030 framework, specifically the EU
domestic greenhouse gas reduction target of at least 40%, formed the basis of the EU's
contribution to the
Paris Agreement. The EU’s so-called
Intended Nationally Determined
Contribution (INDC) was formally approved at an Environment Council meeting in March 2015.
In May 2018 the EU member states reached an agreement on the effort sharing for the period
2021-2030, for which the formal implementation is pending. Under the EU burden sharing of the
joint EU target for 2030 under the Paris Agreement, Denmark is
–
in the effort sharing of the joint
EU target for non-ETS emissions in 2030
–
committed to a reduction in non-ETS emissions in the
period 2021-2030 of 39% by 2030 relative to 2005. The EU is also committed to reducing its ETS
emissions to achieve the 40% below 1990 levels by 2030 in total greenhouse gas emissions. The
EU has also set itself the target of increasing the share of renewables in energy use to 32% by
2030. Denmark will allocate funds that sets a course towards a Renewable Energy share of
approximately 55% in energy use by 2030.
The following sections contain more information about
Denmark’s climate relevant
action plans until now and the climate policy framework until 2030 which is the
Energy Agreement from June 2018.
This section is followed by sector by sector descriptions of Denmark’s climate
policies and measures.
4.1.1 National action plans
In 1988 the government issued the Government's Action Plan for Environment and
Development. The plan was a follow-up on the Brundtland Report and was based in
principle on striving for environmentally sustainable development. One of the main
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messages in the plan was the need to integrate environmental considerations into
decisions and administration within such sectors as transport, agriculture and energy.
In the years since then, a number of ministries have prepared sector action plans in
which the environment is an integral element. The sector action plans deal with the
entire development in a sector combined with solutions to environmental problems
caused by the sector. The sector plans for energy, transport, forestry, agriculture, the
aquatic environment, waste, and development assistance are important examples.
The plans from the 1990s all contained specific environmental objectives and,
usually, deadlines for achieving them. In addition, there were a number of concrete
initiatives that are intended to lead to achievement of the objectives. Progress has
been evaluated regularly to check whether the implementation of the plans resulted
in achievement of the objectives. The results of the evaluations have been presented
in political reports from the sector ministries or in special follow-up reports.
The evaluations and follow-up have often given rise to the preparation of new action
plans, either because additional initiatives have been necessary in order to achieve
the objectives or because the development of society or developments within the area
in question have made it necessary to change both objectives and initiatives. Major
sector plans that have been of importance for the reduction of greenhouse gas
emissions are:
The NPO Action Plan on pollution from livestock manure (1985)
Action Plan for the Aquatic Environment I (1987)
Energy 2000 (1990)
Action plan for sustainable development in the agricultural sector (1991)
Strategy for sustainable forest management (1994)
Strategy 2000 - Danish strategy in the development assistance area (1995)
Energy 21 (1996)
Action plan for reduction of the transport sector's CO
2
emissions (1996)
National sub-strategy for Danish environmental and energy research (1996)
Action Plan for the Aquatic Environment II (1998)
Action Plan II - Ecology in Development (1999)
Waste 21 (1999)
Action plan for reduction of industrial greenhouse gas emissions (2000)
Reduction of the transport sector's CO
2
emissions - possibilities, policies and
measures (2000)
Reduction of the transport sector's CO
2
emissions - the government's action
plan (2001)
Denmark's national forest programme (2002)
Denmark's National Strategy for Sustainable Development (2002)
National Climate Strategy for Denmark (2003)
Waste Strategy 2005-2008 (2003)
Action Plan for the Aquatic Environment III (2004)
1
st
National Allocation Plan 2005-2007 under the EU-ETS (2004)
Energy Strategy 2025 (2005)
Action Plan for Strengthened Energy-saving Efforts (2005)
2
nd
National Allocation Plan 2008-2012 under the EU-ETS (2007)
Political agreement on Energy (2008)
Political agreement on a Green Transport Vision for Denmark (2009)
Political agreement on a Tax Reform (2009)
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Growth with Consideration
– the government’s strategy for sustainable
development (2009)
Strategy for reducing energy consumption in buildings (2009)
Political agreement on a Green Growth Plan (2009)
Waste Strategy 2009-2012
–
Part I (2009)
Waste Strategy 2009-2012
–
Part II (2010)
Energy Strategy 2050 (2011)
Our Future Energy (2011)
Political Agreement on Energy (2012)
The Danish Climate Policy Plan
–
Towards a low carbon society (2013)
The Agricultural Package (2016)
The Energy Agreement (2018)
The Climate and Air proposal “Together for a greener future” (2018)
The sector plans deal with different aspects of the climate problem. In the energy and
transport sectors, the main environmental concern has been the emissions of the
greenhouse gas CO
2
. The plans in these sectors were therefore to a great extent
concerned with reducing CO
2
.
The frameworks for the Danish energy sector, however, have changed quite
significantly over a short period of time. The goal of Danish energy policy today is to
create well-functioning energy markets within frameworks that secure cost-
effectiveness, security of supply, environmental concerns and efficient use of energy
under conditions of a fully liberalised energy sector. Electricity production from
Danish power plants is controlled by market forces and traded freely across national
borders.
The introduction of CO
2
quota regulation as a common EU instrument has therefore
been of absolute importance to Denmark meeting its climate commitments. From
2005, quota regulation through the EU emissions trading scheme (EU ETS) has been
the key instrument to ensuring that the Danish energy sector can contribute to the
reductions requisite to fulfilling Denmark’s climate commitments.
The other sector plans are not primarily focused on reducing greenhouse gas
emissions, in part because the sectors are battling with other major environmental
problems. The main concern in the agricultural sector has been pollution of the
aquatic environment. In the waste sector it has been reduction of the volume of
waste, and in the industrial sector, reduction of emissions/discharges of harmful
substances to the atmosphere/aquatic environment, the use of toxic substances, etc.
However, the implementation of the sector plans has to a great extent also resulted in
reduction of greenhouse gas emissions. For example, the reduction in nitrogen
emissions from the agricultural sector, which is the result of the aquatic environment
plans, is at the same time reducing emissions of the greenhouse gas nitrous oxide.
The initiatives to reduce waste quantities mean fewer landfill sites and thus less
formation and emissions of methane, and the on-going increase in forested area will
mean increased removals of CO
2
.
In addition, the energy and transport plans meant that changes were made in the
energy and transport sectors. The initiatives in the energy sector have resulted in
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reduced energy consumption despite significant economic growth and, with that,
reduced CO
2
emissions.
On the environment policy front, Denmark has participated actively in improving
environmental protection in Europe through the EU cooperation and through bilateral
environmental assistance to Central and Eastern European countries. On a number of
points, the EU's environmental regulation has put Europe ahead of the rest of world
environmentally. There are also many examples of EU rules having helped to
strengthen environmental protection in Denmark. With the adoption of the
Amsterdam Treaty, sustainable development became a main objective for the EU,
and integrating environmental considerations in the EU's sector policies became an
obligation.
4.1.2 Denmark's Climate Policy
4.1.2.1
The 2018 Energy Agreement
On 29 June 2018 an Energy Agreement on future Danish energy policy until 2024 -
and for some elements until 2030 - was reached with all Parties in the parliament
1
.
The 2018 Energy Agreement is an agreement on allocating funding that sets a course
towards a share of renewable energy of approximately 55% by 2030. The agreement
will also give Denmark a share of renewable energy in electricity above 100% of
consumption, while ensuring that at least 90% of district heating consumption is
based on energy sources other than coal, oil or gas by 2030.
The parties to the agreement have also agreed that Denmark will work towards net
zero emissions, in accordance with the Paris Agreement, and advocate for the
adoption of a target of net zero emissions in the EU and Denmark by 2050 at the
latest.
The agreement includes the following initiatives:
E1) World class offshore wind
E2) Renewable energy on market conditions
E3) Reduction of taxes on electricity and restructuring of surplus heat utilisation
E4) Targeted energy savings (E4a) and Support schemes to promote replacement of oil-fired boilers
in favour of individual heat pumps (E4b)
E5)
Modernisation of the heating sector and mitigating the impacts of eliminating the “base subsidy”
E6) Strengthened energy and climate research
E7) Denmark leading the way in exports of green energy solutions
E8) A smart and flexible energy system
E9) Funding for green transport
E10) Reserve for additional investments in RE from 2025 onwards
The elements in the 2018 Energy Agreement are described in greater detail in the
sector chapters below.
1
https://en.efkm.dk/energy-and-raw-materials/energy-proposal/
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4.1.2.2
Additional measures in 2019
In October 2018, the former government published its Climate and Air proposal
“Together for a greener future”.
The climate and air proposal included additional initiatives of which the following
have been adopted, implemented or are under implementation as of 1 November
2019:
A commission for the transition to green cars must show the way (Commission established in
February 2019) [C2 in draft NECP].
No registration tax in 2019 and 2020 on green cars priced below 400,000 DKK
(implemented) [C3 in draft NECP].
Greater powers for municipalities to grant parking discounts for low-emission cars (Statutory
order issued in February 2019) [C6 in draft NECP].
Ensuring parking spaces with charging stations for low-emission cars (under implementation,
meetings with stakeholders have been held) [C7 in draft NECP].
Denmark’s municipalities can grant low-emission
cars permission to drive in bus lanes
(Statutory order issued in March 2019) [C8 in draft NECP].
An end to carbon emissions and air pollution from busses in Denmark’s
cities by 2030
–
starting with the first step in 2020, where new buses must be CO
2
-neutral (an introductory
meeting with stakeholders has been held) [C10 in draft NECP].
Clean air in Denmark’s big cities –
bringing environmental zones up to date (Act adopted in
May 2019) [C11 in draft NECP].
Petrol and diesel out of taxi operations by 2030 (12a on increased energy efficiency demands
for new taxis: Statutory order issued in August 2019 / 12b on guaranteed licence for zero
emission taxis (300 out of 750 until 1 January 2021): Act adopted in May 2019 with entering
into force as of 1 July 2019) [C12 in draft NECP].
Benefits for green taxis (13a on change to the relevant statutory order: adopted in March
2019 / 13b on green taxi priorities at Copenhagen Airport: Working group with airport
authorities established) [C13 in draft NECP].
Higher scrapping premium for old diesel cars (implemented 1 February
–
1 July 2019)
2
[C14
in draft NECP].
All new asphalt on national roads must be climate-friendly, if an ongoing pilot project can
confirm the expected effects and durability of the asphalt (the results of an analysis are
expected in 2019) [C16 in draft NECP].
More environmentally-friendly cruise tourism in the Baltic Sea (funds have been allocated
for four years: in total DKK 10 Million and one conference has been held) [C18 in draft
NECP].
Improvement of biogas plants (efforts initiated in 2019) [C21 in draft NECP].
Stronger research efforts in agriculture. A DKK 90 million) [C23 in draft NECP] research
programme has been established in 2019 for the period 2019-21. Extra DKK 30 million has
been allocated to this initiative in 2022. Furthermore, DKK 40 mio. has been allocated to
climate research in agriculture in 2020 as part of the Danish Green Development and
Demonstration Programme (GUDP)).
Promotion of precision agriculture (preparation of a pilot project in 2019) [C24 in draft
NECP]. In the ongoing pilot projects on precision farming and fertilizer, efforts will also be
made to calculate the possible side effects in relation to reducing greenhouse gases. The
relevant outcome will be integrated in future work on climate.]
2
https://mst.dk/service/nyheder/nyhedsarkiv/2019/jan/nu-fordobles-skrotpraemien-for-gamle-dieselbiler/
https://mst.dk/service/nyheder/nyhedsarkiv/2019/jun/stop-for-ansoegninger-til-forhoejet-skrotpraemie-for-gamle-
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Strategy for development of the natural gas system (under elaboration) [C30 in draft NECP].
Analysis to improve the monitoring and accounting of carbon dioxide storage in soils and
forests (work on such an analysis started in May 2019) [C35 in draft NECP].
The elements implemented or under implementation are described in greater detail in
the sector chapters below.
4.1.2.3
Denmark’s climate policy
and the EU climate policy
Danish climate policy is based on two pillars
–
the European and the national.
The EU is a player in international climate negotiations. In 2008, the EU Climate and
Energy Package established EU targets for 2020 of a 20% reduction in greenhouse
gases compared with 1990, 20% renewable energy and 20% energy-efficiency
improvements cf. Box 4.1.The implementation of the Paris Agreement requires an
ambitious common EU approach for the period after 2020. The need for a common
EU approach was highlighted by the European Council in May 2013. After more
than two years of negotiations the final elements of the
“Clean
Energy for all
Europeans” package was adopted in 2018. The package is set to deliver on the EU
targets for 2030 of a 40% reduction in greenhouse gases compared to 1990 levels, at
least a 32% share of renewable energy consumption and an indicative target for an
improvement in energy efficiency at EU level of at least 32.5% (compared to
projections) cf. Box 4.1.
4.2
L
EGISLATIVE ARRANGEMENTS AND ENFORCEMENT AND ADMINISTRATIVE
PROCEDURES
The legal basis for the division of powers into the legislative, executive, and judicial
power is the Danish Constitution,
Danmarks Riges Grundlov
3
.
The Constitution includes the legal basis for how the Regent acts on behalf of the
Realm in international affairs, and the Regent cannot act without the consent of the
Folketing in any way that increases or restricts the area of the Realm, or enter into
obligations requiring cooperation of the Folketing or which in some other way are of
great significance to the Realm. Neither can the Regent, without the consent of the
Folketing, cancel an international agreement entered into with the consent of the
Folketing.
After a motion from the government, the Folketing thus gave its consent in 2002,
allowing Her Majesty Queen Margrethe the Second, on behalf of the Realm and with
territorial reservations for the Faroe Islands, to ratify the Kyoto Protocol. This was on
31 May 2002.
Denmark's implementation of the Kyoto Protocol in the first commitment period
2008-2012 has been effectuated by following up on the national Climate Strategy,
sector-policy strategies with climate considerations, and concrete initiatives
contributing to limiting or reducing greenhouse gas emissions, and implementation
3
The Danish Constitution (Danmarks Riges Grundlov) ( http://www.retsinfo.dk/_GETDOCI_/ACCN/A19530016930-REGL /:
http://www.folketinget.dk/pdf/constitution.pdf )
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of the other parts of the Kyoto Protocol. The legislation necessary to do this has been
adopted in pursuance of the Constitution regulations concerning legislative powers.
Pursuant to the Constitution, the Regent is the ultimate authority, cf. paragraphs 12-
14:
“12.
Subject to the limitations laid down in this Constitutional Act, the King shall
have supreme authority in all the affairs of the Realm, and shall exercise such
supreme authority through the Ministers.
13.
The King shall not be answerable for his actions; his person shall be sacrosanct.
The Ministers shall be responsible for the conduct of government; their responsibility
shall be defined by statute.
14.
The King shall appoint and dismiss the Prime Minister and the other Ministers.
He shall decide upon the number of Ministers and upon the distribution of the duties
of government among them. The signature of the King to resolutions relating to
legislation and government shall make such resolutions valid, provided that the
signature of the King is accompanied by the signature or signatures of one or more
Ministers. A Minister who has signed a resolution shall be responsible for the
resolution.”
With this background, the Regent delegates responsibility for various functions to
government ministers through Royal resolutions. This makes the various ministers
for different areas responsible for, e.g. making proposals for new/amended
legislation made necessary by the Kyoto Protocol, enforcement of legislation and
initiation of necessary administrative procedures.
The total set of regulations (in Danish) can be accessed via Retsinformation
4
(online
legal information system). Legislation concerning measures of importance to
Denmark's commitments under the Kyoto Protocol will be enforced pursuant to the
current legal basis, including pursuant to any penalty clause. Enforcement could also
involve the judicial power.
As regards the institutional arrangements for the implementation the Kyoto Protocol
concerning activities in connection with participation in the mechanisms under
Articles 6, 12, and 17 of the Kyoto Protocol, these tasks have been delegated to the
Danish Energy Agency (DEA) under the Ministry of Energy, Utilities and Climate.
The DEA is also responsible for legislation and administration of the EU emission
trading scheme. The supplementary regulations regarding the approval and use of
JI/CDM credits and the Registry are now regulated in Statutory Order No. 118 dated
28 February 2008 with later amendments
(https://www.retsinformation.dk/Forms/R0710.aspx?id=144489).
Among the national legislative arrangements and administrative procedures that seek
to ensure that the implementation of activities under Article 3, paragraph 3, and the
elected activities under Article 3, paragraph 4, also contribute to the conservation of
biodiversity and sustainable use of natural resources is The Forest Act (Consolidating
Act No. 315 of 28 March 2019), and the implementation thereof by the Danish
Environmental Protection Agency under the Ministry of Environment and Food.
4
http://www.retsinfo.dk/
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Preservation of areas designated as forest reserve land and protection of natural
habitats and habitats for species are among the foremost objectives of the Forest Act.
Furthermore, activities under Article 3, paragraph 3, and the elected activities under
Article 3, paragraph 4 have to be implemented in accordance with Natura 2000,
which are the Special Areas of Conservation (SAC) designated according to the
European Union’s Habitats Directive
and the Special Protection Areas (SPA)
designated according to the European Union’s Birds Directive. The Danish Ramsar
Sites are included in the Special Protection Areas.
The Ministry of Environment and Food of Denmark, has the overall responsibility
for the implementation of the Habitats Directive and the Birds Directive. The
implementation includes the designation of 262 Special Area of Conservation, 113
Special Protection Areas and 28 Ramsar Sites. The rules for administration of the
Danish Natura 2000 are laid down in Executive Order No. 1595 of 6 December 2018
on the Designation and Administration of Internationally Protected Sites and the
Protection of Certain Species. Similar rules are integrated in other ministries
legislation e.g. fisheries and constructions in marine areas.
4.3
P
OLICIES AND MEASURES AND THEIR EFFECTS
In this section,
the individual measures relevant to Denmark’s climate policy are
described.
An overview of Denmark’s portfolio of climate relevant policies and
measures is contained in Chapter 3 of the NECP (Table 8 with existing policies and
measures).
Sections 4.3.1-4.3.4 includes descriptions of the cross-sectoral policies and measures,
allowance regulation, the Kyoto Protocol mechanisms, taxes and duties and the
national green climate fund. Sections 4.3.5-4.3.9 contains descriptions of policies and
measures in the following IPCC source/sink and sector categories: Energy (including
Transport), Industrial Processes and Product Use, Agriculture, LULUCF (Land-use,
Land-use change and Forestry) and Waste.
Table 4.1 shows how the allocation to be used in connection with the annual
emission inventories (the CRF/IPCC format) is aggregated into the sectors included
in this Chapter on policies and measures.
T
ABLE
4.1 A
GGREGATION OF SOURCE
,
SINK AND SECTOR CATEGORIES IN THE
CRF/IPCC
FORMAT INTO
THE SECTORS INCLUDED IN THIS CHAPTER
Sectors in this chapter and Chapter 5 Sources/Sectors in the CRF/IPCC format
Energy
1.
Fuel combustion activities (1A) and Fugitive emissions from fuels (1B)
- with subsections on:
Business
1A2+
Manufacturing Industries and Construction
1A4a+ Commercial/Institutional
1A4c.
Agriculture, Forestry and Fisheries
Households
Transport
Industrial Processes and Product Use
Agriculture
LULUCF
Waste
1A4b
1A3.
2.
3.
4.
5.
Residential
Transport (national)
Industrial processes and Product Use
Agriculture
Land-use, Land-use Changes and Forestry (LULUCF).
Waste
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Table 4.2 and Figure 4.8 show the main result of this aggregation, including indirect
CO
2
emissions, for the historic greenhouse gas inventories in 1990, KP2 base year
estimate for 1990/95
5
and 2017 as well as the August 2019 projections of annual
emissions in 2020, 2025, 2030, 2035 and 2040
in the “with existing measures”
(WEM) scenario
6
–
with and without emissions and removals in connection with
land use, land-use change and forestry (LULUCF)
7
.
In accordance with the reporting guidelines, the following sector sections in this
chapter are subdivided by gas.
The effects of existing policies and measures
Regarding the greenhouse-gas-reducing effects of existing measures, a major ex-post
analysis of Denmark's efforts in 1990-2001 to reduce emissions of CO
2
and other
greenhouse gases, and associated costs was finalised and published in March 2005 in
the report,
“Denmark's CO
2
emissions - the effort in the period 1990-2001 and the
associated costs”
8
, hereafter
the Effort Analysis.
The results of the
Effort Analysis
are
described in
Denmark’s 7
th
National Communication under the UNFCCC
9
(Annex
B2).
Prior to this analysis, quantitative estimates of the effect of separate measures on
greenhouse gas emissions were often limited to ex-ante estimates before the measure
in question was adopted. In a few cases, the implementation of a measure was
followed by an ex-post evaluation. A major reason that only a few ex-post
evaluations of individual measures have been carried out is that it is often difficult to
clearly attribute an observed greenhouse gas reduction to a particular measure, since
many areas (sectors/sources) are affected by several measures at the same time.
In the analysis of the importance of selected, implemented measures for greenhouse
gas emissions as a result of efforts in 1990-2001, the effect and cost of a number of
measures were estimated - both for the year 2001 and for the period 2008-2012.
Thus, the latter case is a so-called without measures projection i.e. without the effects
of measures implemented since 1990, which gives estimates of the size of mean
annual greenhouse gas emissions in 2008-2012, if the measures until 2001 had not
been implemented.
Please note that the statistical base for
the Effort Analysis
has included the emissions
inventory submitted to the EU and the UN in 2003 (covering 1990-2001) and the
“with measures” baseline projection (2008-2012),
i.e. without additional measures,
published in February 2003 together with the Climate Strategy of the government in
2003.
5
Under the second commitment period of the Kyoto Protocol, Denmark's base year is 1990 for CO
2
, methane and nitrous oxide,
and 1995 for the industrial gases (HFCs, PFCs, SF
6
and NF
3
–
however with no emissions of the latter) cf. Article 3.8 of the
Protocol from the inventory reported, reviewed and resubmitted in 2016-2017
(https://unfccc.int/sites/default/files/resource/docs/2017/irr/dnk.pdf).
6
https://presse.ens.dk/news/basisfremskrivning-2018-nu-paa-engelsk-316511
7
Under the Kyoto Protocol, the LULUCF category is dealt with separately under Articles 3.3 and 3.4.
8
Denmark's CO
2
emissions - the effort in the period 1990-2001 and the associated costs, Report from the Danish EPA, No. 2,
April 2005 (Main report
http://www.mst.dk/udgiv/publikationer/2005/87-7614-587-5/pdf/87-7614-588-3.pdf
and Annex
report:
http://www.mst.dk/udgiv/publikationer/2005/87-7614-589-1/html).
9
https://unfccc.int/sites/default/files/resource/8057126_Denmark-NC7-BR3-2-NC7-DNK-Denmarks-NC7-and-
BR3_1January2018-12MB.pdf
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In December 2013 the Ministry of Climate, Energy and Building published a paper
with another ex-post analysis in response to recommendations in a report published
by the National Audit Office in October 2012. This paper contains an evaluation of
the effects of certain climate change mitigation measures selected by the National
Audit Office. A translation of this paper is contained in
Denmark’s 7
th
National
Communication under the UNFCCC
10
(Annex B3).
In December 2015 estimates of the total effect of the group of policies and measures
that promote the use of renewable energy (RE-PAMs) and of the total effect of the
group of policies and measures that promote energy efficiency (EE-PAMs) were
elaborated. In September 2019 these estimates were updated on the basis of the most
recent energy statistics covering the period 1990-2017 and the August 2019
“with
measures” projection covering the period until
2040. The methodologies are further
described in
Denmark’s 7
th
National Communication under the UNFCCC
11
(Annex
B4).
Separate estimate of the effect of the 2018 Energy Agreement
In this report the effects of most of the additional policies and measures
adopted
with
the 2018 Energy Agreement
is included in the “With Existing Measures” (WEM)
greenhouse gas projection scenario.
In 2018, it was estimated that the
2018 Energy Agreement
alone will provide a 10-11
million tonnes
reduction in Denmark’s total
greenhouse gas emissions by 2030. The
majority of these reductions will be within sectors covered
by the EU’s Emissions
Trading System (EU ETS) as approximately 0.15-0.25 million tonnes CO
2
is
estimated to be the reduction in 2030 outside of the EU ETS (non-ETS).
Accumulated over the non-ETS reduction commitment period 2021-2030 the energy
agreement’s initiatives
are expected to reduce carbon emissions from the non-ETS
sectors by approximately 1.1 to 1.5 million tonnes CO
2
in the period 2021-2030. The
largest contributions come from new energy saving subsidies and the reduced
electricity heating tax which makes it more attractive to switch to heat pumps. With
these and other initiatives, the agreement will help Denmark reach its 39%
greenhouse gas emissions reduction target by 2030 in the non-ETS sectors.
10
https://unfccc.int/sites/default/files/resource/8057126_Denmark-NC7-BR3-2-NC7-DNK-Denmarks-NC7-and-
BR3_1January2018-12MB.pdf
11
https://unfccc.int/sites/default/files/resource/8057126_Denmark-NC7-BR3-2-NC7-DNK-Denmarks-NC7-and-
BR3_1January2018-12MB.pdf
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T
ABLE
4.2 D
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1990-2017,
THE
B
ASE YEAR UNDER THE SECOND COMMITMENT PERIOD OF THE
K
YOTO
P
ROTOCOL AND THE MAIN RESULTS OF
THE
A
UGUST
2019
“
WITH
(
EXISTING
)
MEASURES
”
(WEM)
PROJECTION FOR
2020, 2025, 2030, 2035
AND
2040
BY SECTOR AND BY GAS
(
INCLUDING INDIRECT
CO2),
WITH AND
WITHOUT
LULUCF
AS REPORTED UNDER THE
UNFCCC
Source: Nielsen et al. (2019a), Nielsen et al. (2019b
–
to be published), Danish Energy Agency (2019) and Ministry of Climate, Energy and Utilities
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F
IGURE
4.8 D
ENMARK
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2017
BY SECTOR
Source: Nielsen et al. (2019) and the Danish Ministry of Climate, Energy and Utilities
4.3.1 Allowance regulation - Emission Trading Scheme
EU ETS 2005-2007
Directive 2003/87/EC on trading in CO
2
allowances (the EU ETS Directive) in 2005
introduced a greenhouse gas emissions allowance trading scheme in the EU. The
objective of the allowance scheme is to reduce emissions of greenhouse gases so that
the EU and its Member States can meet their reductions commitments under the
Kyoto Protocol and the EU Burden-Sharing Agreement.
EU ETS 2008-2012
According to the EU ETS Directive, each Member State had to prepare a national
allocation plan before the trading period 2008-12.
The European Commission approved the Danish National Allocation Plan (NAP2) in
2007. The NAP contained a detailed plan for the reduction efforts. In the NAP, the
gap between the emission target and emission under business as usual amounted to
13 million tonnes CO
2
per year. Of this gap, 5.2 million tonnes CO
2
are covered by
efforts in the emission trading sector, while the remaining 7.8 million tonnes CO
2
are
covered by efforts in the non-emission trading sector using various instruments,
including the use of CDM credits, sinks and additional domestic efforts. The NAP
also ensures that Denmark honours the supplementarity principle.
Via the NAP, the allowance regulation in Denmark included individual emission
limits 2008-2012 for CO
2
emissions from several sectors, which together produce
approx. half of Denmark's total greenhouse gas emissions. Denmark allocated a total
of 125 million CO
2
emission allowances during the five years of the scheme. Of
these, 2.5 million have been allocated to new production units and major expansions.
The rest have been allocated free of charge to those production units covered by the
trading scheme in 2007.
In the following, only the principles and general figures for Denmark's
implementation of the EU ETS Directive via NAP2 will be described.
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From the 1 January 2008 the first Kyoto Commitment Period (CP1) commenced. In
practice the EU ETS has not changed for the Danish operators under the EU ETS,
even after the Community Independent Transaction Log and the registries under the
EU ETS connected to the International Transaction Log under the UN on 28 October
2008, as the registry was already ready to work in the international emissions trading
system.
Relevant key figures in the NAP for Denmark for the period 2008
–
2012 are shown
in Table 4.3.
T
ABLE
4.3: K
EY FIGURES IN THE PROPOSAL FOR
D
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2008-12
Source:
Denmark’s National Allocation Plan 2008-12
(NAP2), 2007
2003
Projected
emissions emissions 2008-12
Sectors subject to allowances, in
total
- electricity & heat production
- other sectors subject to
allowances, incl. offshore
industries-
- auction
- new installations
Sectors not subject to allowances
Total
1
Quota
Quota allocation
allocation
2005-07
2008-12
Million tonnes CO
2
equivalents per year
36.6
29.7
24.5
33.5
28.1
8.5
20.5
9.2
15.8
8.2
21.7
7.1
0
0.5
37.8
1
74.4
38.1
67.8
1.7
1
On the basis of the European Commission’s broad definition of enterprises covered.
Denmark was committed to reducing its national greenhouse gas emissions by 21%
in 2008-12, compared to 1990/1995 level. That meant that emissions had to be
reduced to an average 54.8 million tonnes of CO
2
equivalents annually for the period.
In NAP2, the deficit between expected Danish emissions of CO
2
and the target
Denmark was committed to achieving was expected to 13 million tonnes for the
period 2008-12 if no further initiatives were implemented. The NAP documented
how this deficit would be reduced to zero. As stated in NAP2, Denmark would meet
its commitment through a combination of domestic and foreign environmental and
energy measures by the government and by Danish enterprises with CO
2
emissions.
Denmark has had an active, environmentally oriented energy policy since the 1970s,
and since 1990 this has been supplemented by an actual climate policy which, on an
international scale, has entailed a major strain - economically and/or via
administrative regulations - on most greenhouse gas emissions, especially from
businesses and sectors not subject to allowances.
The period 2008
–
2012 was finalized in 2013 with the final surrendering of
allowances and credits by companies participating under the EU ETS.
The final EU ETS accounting in Denmark for the period 2008-2012 shows that total
verified CO
2
emissions under the EU ETS in Denmark were a little below the total
amount of allocated allowances cf. Table 4.4. However, some companies have to
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some extent surrendered credits from JI and CDM projects and presumably instead
sold or banked their surplus EU allowances.
T
ABLE
4.4: V
ERIFIED
CO
2
EMISSIONS UNDER THE
EU ETS
IN
D
ENMARK
,
FREE ALLOCATIONS AND
SURPLUS
/
DEFICIT FOR THE PERIOD
2008-2012
Source: Danish Energy Agency, May 2013
Verified CO
2
emissions under
the EU ETS in Denmark 2008-2012
2008 2009 2010
2011
2012
Annual
Average
2008-12
Free
allocation
Excess of quotas
(negative number
represents a deficit)
Million tonnes CO
2
Central power plants
Industry and Service
Offshore
Other electricity and
heat production
Total stationary
1
Aviation
2
1
17.6
5.3
2.0
1.6
26.5
17.8
4.3
1.8
1.6
25.5
17.2
4.2
1.9
2.0
25.3
(1.5)
13.8
4.3
1.7
1.6
21.5
(1.4)
10.9
4.3
1.7
1.4
18.2
1.3
15.46
4.48
1.82
1.64
23.4
1.3
Annual
Annual
Average
Average 2008-12
2008-12
Million
tonnes
Million tonnes EUAs
EUAs
13.4
-2.06
5.8
1.32
2.3
0.48
2.4
0.76
23.9
1.1
0.5
- 0.2
In 2012, a total of 375 stationary installations were covered. Of these were 16 central power and heat plants, 111 manufacturing industries, 241
decentralized electricity and district heating plants and 7 offshore companies.
2
In 2012, total CO
2
emissions from the 26 aircraft operators covered by the EU ETS in Denmark exceeded the free allocation of allowances for
2012. It should be noted that aviation emissions for 2012 cannot be compared with previous years, as aircraft operators in 2012 have been able to
make use of the EU Commission's "stop- the-clock " decision. This decision, which applies only for 2012, gives an operator the opportunity to
deduct CO
2
emissions related to flights in and out of the EU. Most operators chose to make use of this opportunity.
EU ETS 2013-2020
The EU Climate and Energy Agreement from December 2008 extended the ETS
system to 2013-2020 in order for the EU to reduce CO
2
-emissions by 20% in 2020.
At the same time allocation was centralised and reduced, while auctioning is
being/have been used more extensively since 2013.
Free allocation for stationary installations is carried out on the basis of benchmarks.
These benchmarks reward best practice in low-emission production and are an
important signal of the EU's commitment to moving towards a low-carbon economy.
Although auctioning is the default method for allocating emission allowances to
companies participating in the EU ETS, the manufacturing industry continues to
receive a share of free allowances until 2020 due to carbon leakage. The heat
production also continues to receive free allowances
–
however declining from 80%
of the benchmark in 2013 to 30% of the benchmark in 2020 for those not being
exposed to carbon leakage.
The allowances for the installations in the EU ETS have been calculated for 2013-
2020 in accordance with the EU benchmarking decision 2011/278/EU. The Danish
National Implementation Measures (NIM) list was approved by the European
Commission in January 2014.
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Waste incineration plants which are primarily used for district heating were included
in the ETS in Denmark by 1
st
of January 2013, while about 30 installations
exclusively using biomass were excluded of the ETS. The inclusion of waste
incineration plants lead to an increase in the total amount of CO
2
-emission from the
ETS in Denmark in 2013 compared to 2012.
Aviation has been a part of ETS since 2012. Aircraft operators get free allowances
based on their activity and the scope.
EU ETS 2021-2030
The legislative framework of the EU ETS for its next trading period 2021-2030
(phase 4) was revised in early 2018 to enable it to achieve the EU's 2030 emission
reduction targets in line with the 2030 climate and energy policy framework and as
part of the EU's contribution to the 2015 Paris Agreement.
The revision focuses on:
Strengthening the EU ETS as an investment driver by increasing the pace of
annual reductions in allowances to 2.2% as of 2021 and reinforcing the
Market Stability Reserve (the mechanism established by the EU in 2015 to
reduce the surplus of emission allowances in the carbon market and to
improve the EU ETS's resilience to future shocks).
Continuing the free allocation of allowances as a safeguard for the
international competitiveness of industrial sectors at risk of carbon leakage,
while ensuring that the rules for determining free allocation are focused and
reflect technological progress.
Helping industry and the power sector to meet the innovation and investment
challenges of the low-carbon transition via several low-carbon funding
mechanisms.
Denmark's national allowance registry
Denmark's national allowance registry
–
(DK ETR
–
Emission Trading Registry
12
)
has been operating since 1 January 2005. The DK ETR is used to allocate allowances
to production facilities subject to allowances and enables trade in allowances among
the allowance holders found in the registry. Since the 1
st
of July 2012 the DK ETR
has been a part of the EU ETS that host the emission trading registry for all of the
member states in the EU. The DK ETR is constructed so it also fulfils all Kyoto
requirements.
The DK ETR is also functioning as the national registry under the Kyoto Protocol.
The establishment of a functioning DK ETR pursuant to the Kyoto Protocol is a
prerequisite for the application of the Kyoto mechanisms.
4.3.2 The Kyoto Protocol mechanisms
For the period 2008-2012, the flexible Kyoto Protocol mechanisms have been
important elements in supplementing domestic reduction measures aimed at fulfilling
12
https://www.kvoteregister.dk
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the international climate commitment under the Kyoto Protocol and the subsequent
EU Burden Sharing Agreement.
For the period 2013-2020, the government will not use the flexible Kyoto Protocol
mechanisms for the achievement of Denmark’s target under the EU Effort Sharing
Decision, which is to be seen as Denmark’s contribution to the EU joint target under
the 2
nd
commitment period of the Kyoto Protocol. For the achievement of the joint
EU target for the EU Emissions Trading Scheme’s contribution
to the EU joint
overall target under the 2
nd
commitment period of the Kyoto Protocol, Danish entities
under the EU ETS will be able to make use of the flexible Kyoto Protocol
mechanisms subject to the conditions in the EU legislation. In the ETS, the use of
international credits is capped (up to 50 % of the reduction required from EU ETS
sectors by 2020). Quality standards also apply to the use of international credits in
the EU ETS, including a ban on credits from LULUCF projects and certain industrial
gas projects.
4.3.3 Taxes and duties
In Denmark, total taxes and duties made up a total of approx. 46% of GDP in 2017.
The public sector provides childcare, education, unemployment benefits, health and
disability benefits, old-age pensions, and many other services.
Personal income tax is the most important tax, constituting about half of total tax
revenues. Other taxes are VAT, duties and corporation taxes. Danish VAT is
relatively high, 25%, and there are no differentiated rates. There are a considerable
number of additional consumption taxes and environmental taxes. The corporation
tax rate is 22%.
Total revenue from all taxes and duties amounted to DKK 1,003 billion in 2017. The
relative distribution is shown in Figure 4.9.
F
IGURE
4.9 R
ELATIVE DISTRIBUTIONS OF TAXES AND DUTIES
2017
Source: Ministry of Taxation, Statistics Denmark
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Taxes that influence Denmark’s greenhouse
gas emissions
Retail prices on products that influence Danish greenhouse gas emissions are, in
most cases, the decisive factor determining the degree to which they are consumed.
Energy prices influence the composition and total size of energy consumption.
Therefore extra taxes and duties put on products influence the consumption of these
products and the size of greenhouse gas emissions associated with the use of the
products.
Denmark has special taxes on motor vehicles, energy products, alcohol, tobacco, and
a number of other products. During the past 25 years a number of new environmental
taxes have been introduced. These taxes are imposed on consumer goods that cause
pollution or are scarce (water, energy products such as oil, petrol, electricity, etc.) or
on discharges of polluting substances (CO
2
, HFCs, PVC, SF
6
, SO
2
, NO
x
and
sewage). Taxes are in accordance with EU legislation.
The introduction of CO
2
taxes and the increase in the rates of individual energy taxes
since 1990 have had an effect on the consumption of a number of energy products
and have therefore reduced the CO
2
emissions associated with consumption of these
products.
4.3.3.1
CO
2
, CH
4
, and N
2
O - taxes and duties relevant to these emissions
4.3.3.1.1 Energy
Denmark has had taxes on energy for many years. Since the first oil crisis in the early
1970s, the rates of the taxes have been aimed at reducing consumption and
promoting the instigation of more energy-saving measures. Lower energy
consumption will reduce emissions of CO
2
, methane (CH
4
), and nitrous oxide (N
2
O)
associated with combustion of fossil fuels.
Danish energy taxes are laid down in the four Danish tax acts on mineral-oil, gas,
coal, and electricity, respectively (Mineralolieafgiftsloven, Gasafgiftsloven,
Kulafgiftsloven, and Elafgiftsloven). Besides the energy taxes there is also a tax on
CO
2
, NO
x,
sulphur and industrial gasses (see Table 4.5). As from 1 January 2016 the
tax rates set in these tax acts follow a yearly regulation based on the consumer price
index of two years prior except for the tax rates on industrial gasses.
A tax on NO
x
(nitrogen oxides) was originally introduced as part of a 2008 energy
agreement and came into effect on 1 January 2010 with a rate of 5 DKK per kg NOx.
From 1 January 2012, a considerable increase in the taxation of NOx from 5 DKK
per kg NOx to 25 DKK per kg NOx was implemented. However, the rate was
reduced in 2016 to 5 DKK per kg NOx.
A tax on sulphur in fuels was introduced 1 January 1996 with a rate of 20 DKK per
kg sulphur in fuels and a rate of 10 DKK for SO
2
emitted to the air. One of the side
effects of this tax is assumed to be a reduction in CO
2
emissions.
In March 2012 a general agreement on Danish energy policy from 2012-2020 was
made. The agreement seeks to ensure the transition from an energy supply based on
fossil fuels to one based on renewable energy. Additional initiatives regarding taxes
and duties have been adopted with the 2018 Energy Agreement and planned with the
2018 Climate and Air proposal. These initiatives are described later.
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T
ABLE
4.5 E
NERGY TAXES
2010-2018
Source: Ministry of Taxation
Coal
Natural gas
Oil products
1
Electricity: For
heating
Electricity: Other
Waste: Heating
from waste
Other
compostable
biomass
1
2
Unit
DKK/toe
DKK/toe
DKK/toe
DKK/kWh
DKK/kWh
DKK/toe
DKK/toe
2010
2011
2012
2013
2014
2015
2016
2017
2018
2,399
2,405
2,400
0.545
0.659
2,445 2,487 2,533
2,449 2,493 2,538
2,443 2,487 2,532
0.614
0.730
0.624
0.742
2,072
0
0.341
0.755
2,110
0
3,006
3,006
3,009
0.412
0.833
2,504
0
2,282
2,282
2,282
0.380
0.878
1,901
0
2,299
2,299
2,299
0.383
0.885
1,918
0
2,315
2,315
2,315
2,324
2,324
2,314
0.405 0.257
3
0.910
1,926
0
0.914
1,938
0
1,930 2,035
2
0
0
Only oil used for other purposes than motor fuels
From 1 January 2011
–
30 June 2011 the rate was 1955.2 DKK/toe,
where toe is the energy unit “tonnes oil equivalents”.
3
From 1 January 2018
–
30 April 2018 the rate was 0.407 DKK/kWh.
The Mineral-oil Tax Act entered into force on 1 January 1993. Before this, the tax on
petrol was regulated via the Petrol Tax Act, which entered into force on 1 January
1983, and the Act on Taxation of Gas Oil and Diesel Oil, Heating Oil, Heating Tar,
and Crude Oil was regulated via the Act on Taxation of certain Oil Products, which
entered into force on 3 October 1977. Tax rates from recent years are shown in Table
4.6.
T
ABLE
4.6 T
RENDS IN TAXES
2010-2018
UNDER THE MINERAL
-
OIL TAX ACT
,
STATED IN
DKK/
LITRE
Source: Ministry of Taxation
DKK per
litre
2010
2011
01.01.12- 01.07.12-
30.06.12 31.12.12
2013
2014
2015
2016
2017
2018
Gas oil
and
diesel oil
used as
motor
fuels
Light
diesel oil
Diesel
low in
sulphur
content
Diesel
without
sulphur
Fuel oil
Auto gas
1
2.774
2.825
2.876
2.840
2.891
2.944
2.997
3.021
3.039 3.054
2.669
2.718
2.767
2.731
2.780
2.830
2.881
2.904
2.921 2.936
2.479
2.524
2.570
2.534
2.579
2.626
2.674
2.695
2.711 2.725
2.479
2.330
1.726
2.524
2.372
1.757
2.570
2.415
1.788
2.534
2.415
1.719
2.579
2.835
1
1.749
2.626
2.921
1.782
2.674
2.215
1.814
2.695
2.233
1.829
2.711 2.725
2.246 2.257
1.839 1.848
In January 2013, the rate was 2.458, and from February to December the rate was 2.869.
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From 1 June 1999 a tax differentiation between light diesel and diesel low in sulphur
was introduced, to encourage the use of diesel low in sulphur, which is less polluting
than light diesel. This was accomplished and a change took place soon after to the
effect that almost all diesel sold was low in sulphur. The purpose of further
differentiation from 1 January 2005 favouring sulphur-free diesel was likewise to
encourage the use of this type of diesel in favour of diesel low in sulphur, and this
has been successful.
In addition, tax differentiation has been introduced in order to achieve environmental
goals other than direct reductions in greenhouse gas emissions. Thus tax
differentiation has been introduced with a view to phasing out lead in petrol. The rate
of tax to achieve this environmental goal is shown in Table 4.7.
T
ABLE
4.7 T
RENDS IN TAXES ON DIFFERENT TYPES OF PETROL
2010-2018, DKK
PER LITRE
Source: Ministry of Taxation
DKK per litre
2010
2011
2012
2013
2014
2015
2016
2017
2018
Petrol,
with lead
Petrol,
lead-free
1
4.567
3.881
4.649
3.951
4.733 /
4.700
4.022 /
3.989
4.785
4.062
4.871
4.134
4.959
4.209
4.999
4.243
5.028
4.268
5.053
4.289
The term has been kept even though petrol companies in Denmark ceased using lead for octane improvement in 1994.
The gas tax on natural and town gas was introduced in its current form on 1 January
1996 with a rate for both natural and town gas at DKK 0.01/Nm
3
. There has been
taxation on gas, however, since 1 January 1979, when the tax on town gas and LPG
was introduced. The tax on town gas was cancelled again in June 1983 and
regulation of the tax on LPG was transferred to the Mineral-gas Tax Act when this
Act entered into force. From 1 January 2015 a tax on biogas was introduced. The tax
rates on gas from recent years are shown in Table 4.8.
T
ABLE
4.8 T
AXES ON GAS
2010-2018, DKK
PER
N
M
3
Source: Ministry of Taxation
DKK per
Nm
3
Natural
gas
Town
gas
2010
2011
2012
2013
2014
2015
2016
2017
2018
2.270
2.270
2.311
2.311
2.353
2.353
2.395 2.438 2.158 2.175 2.188 2.199
2.395 2.438 2.158 2.175 2.188 2.199
The coal tax was introduced on 1 July 1982 and constituted DKK 127/tonne for hard
coal and DKK 91/tonne for lignite and lignite briquettes on the day of entry into
force. In the period 1 January 1997 - 31 December 2015 the tax increased from DKK
950/tonne to DKK 1526/tonne for hard coal and DKK 700/tonne to DKK 1036/tonne
lignite. The rates have since 2008 developed as shown in Table 4.9. With effect from
1 January 1999, the so-called waste heat tax introduced (see Law no. 437 of 26 June
1998) as part of the Coal Tax Act. The waste heat tax was introduced in connection
with increases in general taxes on fossil fuels to avoid giving too much incentive in
favour of waste-based heat production, and to counteract the increased incentive for
incineration of waste instead of recycling. From 1 January 2010 the tax was by
burning waste converted from an amount of tax to a tax on energy and CO
2
.
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Restructuring the waste incineration tax is no longer collected by Waste Tax Act, but
is transferred to the Coal Tax and carbon dioxide tax law (see Law no. 461 of 12
June 2009 and the entry into force of Executive Order no. 1125 of 1 December
2009). Context of the proposal was especially that the then tax structure for waste
fuels and fossil fuels taken together could result in waste streams are affected, so
waste is not disposed of where it was most effective with regard to utilization of the
waste energy. The purpose of the change was to make waste more cost-efficient,
which means a welfare economic gain. The change improves the tax structure,
because the waste now ordered virtually the same charges as fossil fuels. The
restructuring charges will then be more neutral with respect to where the waste is
burned. From 1 January 2010, energy from waste incineration imposed waste heat
tax, surcharge and the CO
2
tax. CO
2
tax only if the waste is not biodegradable.
T
ABLE
4.9 T
RENDS IN COAL TAXES
2010-2018, DKK
PER TONNE
Source: Ministry of Taxation
DKK per
tonne
Hard coal
Lignite
2010
2011
2012
2013
2014
2015
2016
2017
2018
1605
1089
1634
1109
1663
1129
1693
1149
2012
1365
1526
1036
1538
1044
1547
1051
1555
1056
The electricity tax was introduced on 1 April 1977. With effect from 1 January 2013,
the tax on electricity used for heating was reduced considerably, to take into account,
that an increasing amount of renewable energy was being used in electricity
production. It has been estimated that this will lead to an emission reduction outside
the emissions trading scheme of 0.15 million tonnes CO
2
in 2015 and 0.29 million
tonnes in 2018. Table 4.10 shows the development in electricity tax rates since 2010.
From 1 May 2018 until the end of 2019 the tax on electricity for heating is further
reduced from DKK 0.407 per kWh by DKK 0.15 per kWh. In 2020 it is reduced by
DKK 0.20 per kWh and from 2021 it is reduced by DKK 0.10 per kWh from 2021.
Further tax reductions on electricity are agreed with the 2018 Energy Agreement:
- The electrical heating tax will be reduced from 0.307 DKK/kWh to 0.155
DKK/kWh, effective 2021.
- The electricity tax will be reduced from 0.914 DKK/kWh to 0.774 DKK/kWh
(phased in from 2019-2025).
- The electricity tax for certain liberal professions will be reduced from 0.914
DKK/kWh to 0.004 DKK/kWh in 2023. This implies that these liberal professions
from 2023 will pay the same taxrate as other VAT-registered business.
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T
ABLE
4.10 T
RENDS IN ELECTRICITY TAXES
2010-2018, DKK
PER K
W
H
Source: Ministry of Taxation
DKK per kWh
2010
2011
2012
2013
2014
2015
2016
2017
2018
Consumption of
electricity, exceeding
4,000 kWh in all-
year residences
heated by electricity
and electricity for
space heating and
comfort cooling in
VAT registered
business
Other electricity
1
0.545
0.614
0.624
0.341
0.412
0.380
0.383
0.405 0.257
1
0.659
0.730
0.742
0.755
0.833
0.878
0.885
0.910
0.914
From 1 January 2018
–
30 April 2018 the rate was 0.407 DKK/kWh.
The CO
2
tax on energy products was introduced on 1 March 1992 and was imposed
on different types of energy products relative to their CO
2
emissions. A tax reduction
was given to light and heavy industrial processes. From 1 January 2010 a structural
change in the CO
2
tax was implemented as an adaption to the EU Emissions Trading
Scheme. The tax rate was increased to DKK 150 /tonne of CO
2
indexed as mentioned
below, cf. table 4.11. In total, this structural change in the CO
2
tax was estimated to
lead to a reduction in the CO
2
emissions of 0.69 million tonnes.
Large waste incineration facilities are from 1 January 2013 included in the emissions
trading scheme. This will lead to a reduction of CO
2
emissions outside the ETS of
approximately 8.9 million tonnes.
Fossil energy products used for space heating are imposed the CO
2
tax regardless of
the production is included in the ETS or not. Space heating included in the emission
trading scheme is thus double taxed.
T
ABLE
4.11 CO
2
TAX RATES
, 2000-2018,
STATED IN
DKK
PER TONNE OF
CO
2
Source: Ministry of Taxation
DKK per tonne
2000-
2004
2005-
2009
90
90
68
22
2010
1
2011
2012
2013
2014
2015
2016
2017
2018
Basic rate
Heating in industry 100
Light industrial processes
Basic rate
90
With a voluntary
68
agreement
Resulting subsidy
22
155.4
-
-
-
158.2
-
-
-
161.1
-
-
-
164.0
-
-
-
-
-
-
0
166.9
-
-
-
-
-
-
0
170.0
-
-
-
-
-
-
0
171.4
-
-
-
-
-
-
0
172.4
-
-
-
-
-
-
0
173.2
Heavy industrial processes
Basic rate
25
25
-
-
-
With a voluntary
3
3
-
-
-
agreement
Resulting subsidy
22
22
-
-
-
Industrial processes covered by the Emission Trading Scheme
Basic rate
2
-
-
0
0
0
1
As of 1 January 2010 a structural change in the CO
2
tax was implemented. For the industries not regulated by the emissions
trading scheme, a fixed lump sum transfer based on historical emissions was given, while the base rate was considerably
increased to match the expected price of CO
2
quotas.
2
Before 2010, the industrial processes covered by the ETS were taxed according to the table, depending on the type of process
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Table 4.12 shows examples of the different types of CO
2
taxes converted into
consumer units.
T
ABLE
4.12 E
XAMPLES OF
CO
2
TAXES
Source: Ministry of Taxation
Unit
2010
2011
2012
2013
2014
2015
2016
2017
2018
Gas oil and
DKK/litre
diesel oil
Gas oil and
diesel oil
DKK/litre
containing
4,8% bio fuel
DKK/kg
Fuel oil
DKK/tonne
Lignite
Natural gas
DKK/Nm
3
and town gas
DKK/litre
Petrol
Petrol
DKK/litre
containing
4,8% bio fuel
0.413
0.420
0.428
0.435
0.443
0.451
0.455
0.457 0.460
0.385
0.493
225.8
0.351
0.373
0.355
0.391
0.502
0.399
0.511
0.405
0.520
0.413
0.529
301.3
0.377
0.400
0.381
0.420
0.539
306.8
0.384
0.408
0.388
0.423
0.543
309.8
0.387
0.411
0.391
0.426 0.428
0.547 0.549
311.1 312.6
0.389 0.391
0.414 0.416
0.393 0.395
225.9 225.10 225.11
0.357
0.379
0.361
0.364
0.386
0.367
0.370
0.393
0.374
In addition to this, there are CO
2
taxes on heating tar, crude oil, coke, crude oil coke,
lignite briquettes and lignite, LPG, and other gases.
As of 1 January 2008 the CO
2
taxes follow a yearly regulation of 1.8% in the period
2008-2015, similar to the energy taxes. From 2016 the tax is regulated with the
consumer price index two years prior as the energy taxes.
4.3.3.1.2 Transport
In the transport sector, the number of cars in Denmark and the use of motorised
vehicles are influenced by the tax on cars and fuels. The latter has been described
above.
The registration tax on motorised vehicles is calculated on basis of the value of the
vehicle. It is furthermore integrated in the design of the registration tax that cars are
granted deductions in the registration tax with reference to their specific energy
efficiency and safety equipment. Cars with high energy efficiencies, such as electric
vehicles, are granted large reductions in the registration tax. Passenger cars, light
commercial vehicles and motorbikes are due to pay the registration tax.
The registration tax on electric vehicles is gradually introduced annually until 2023
when it is fully phased in. Furthermore a deduction dependant on battery capacity is
given during the phase-in scheme. There is also a tax base deduction for electric and
plug-in hybrid cars that amount to DKK 40,000 in 2019 and DKK 77,500 in 2020.In
total, this means that electric cars with a value of up to DKK 400,000 (including
VAT) currently on the Danish market will pay DKK 0 in registration tax in 2019 and
2020 and a low registration tax for more expensive electric vehicles. In addition, the
part of the registration tax that will be phased in for plug-in hybrid cars, will be DKK
0 in 2019 and 2020 for most of the plug-in hybrid cars on the Danish market today.
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Car owners have to pay half-yearly ownership taxes which are differentiated in
accordance with the fuel efficiency of the cars, expressed in kilometres per litre. The
energy consumption of electric cars is converted to a petrol fuel efficiency on the
basis of the energy content of petrol. Examples of classes from 2018 for passenger
cars are shown in Table 4.13.A and 4.13.B. From July the 1
st
2018 the owner ship tax
for cars registered in Denmark from October 3th 2017 is increased by 250 DKK half-
yearly and there is introduced new classes in the ownership tax for the most energy
efficient cars.
Hydrogen cars are not subject to registration tax nor ownership taxes before 2022.
From 2022 there is a phase-in scheme of registration tax in 2022-2025 similar to the
phase-in scheme for electric cars.
T
ABLE
4.13.
A
E
XAMPLES FROM THE
D
ANISH STRUCTURE OF TAX INCENTIVES BASED ON ANNUAL TAXES
ON MOTOR VEHICLES REGISTRATED IN
D
ENMARK
B
EFORE
3
OCTOBER
2017 (2018), DKK/
YEAR
Source: Ministry of Taxation
Type of fuel
Petrol
Fuel consumption (km/l)
> 19.9
10.0
–
10.4
< 4.5
Annual tax (DKK/year)
660
6,820
22,860
260
1,200
2,120
2,980
13,060
33,440
Diesel
> 32.0
28.1-32.0
25-28.0
22.5 - 24.9
10.2
–
11.2
< 5.1
T
ABLE
4.13.
B
E
XAMPLES FROM THE
D
ANISH STRUCTURE OF TAX INCENTIVES BASED ON ANNUAL TAXES
ON MOTOR VEHICLES REGISTRATED IN
D
ENMARK FROM
3
OCTOBER
2017 (F
ROM
1 J
ULY
2018),
DKK/
YEAR
Source: Ministry of Taxation
Type of fuel
Petrol
Fuel consumption (km/l)
> 49.9
44.4
–
49.9
33.3-36.3
25.0-28.5
22.2-24.9
16.7-18.1
< 4.5
Annual tax (DKK/year)
660
740
860
1,000
1,080
2,380
23,360
920
1,000
1,120
2,200
4,320
13,560
33,940
Diesel
> 56.2
50-56.2
37.6-40.9
28.1-32.0
20.5-22.4
10.2
–
11.2
< 5.1
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4.3.3.1.3 The household sector
For the household sector, the taxes levied on consumption of electricity and heat
affect consumption figures, since these products become more expensive with the
introduction of taxes.
4.3.3.2
HFCs, PFCs, and SF
6
- taxes and duties relevant to these emissions
Since 1 March 2001, imports of industrial gases HFCs, PFCs, and SF
6
(F-gases) in
the industry/business sector have been subject to taxation. The tax is differentiated in
accordance with the global warming potential of the substance with DKK 0.15 per
kilogramme of CO
2
equivalents as the general principle and with DKK 600 per
kilogramme as a general upper limit cf. the examples in Table 4.14.
As the taxes on industrial gases are based on the CO
2
tax, there was an increase in
2011, from DKK 0.10 per kilogramme of CO
2
equivalents to DKK 0.15, following
the increased CO
2
tax rate shown in Table 4.11. The impact of this increase is
expected to lead to a reduction in the emission of the industrial gasses of 0.02 million
tonnes CO
2
equivalents.
T
ABLE
4.14 E
XAMPLES OF TAXES ON
F-
GASES
, 2018
Source: Ministry of Taxation
Substance
HFC-134a
R404a (a combination of 3 HFCs)
SF
6
Tax in
GWP DKK
per kg
1430
3922
22800
215
588
600
4.3.3.3
Tax on methane emissions from natural gas fired power plants - equal in
terms of CO
2
equivalents to the CO
2
tax.
As of 1 January 2011 a tax on methane emissions - equal in terms of CO
2
equivalents
to the CO
2
tax - from natural gas fired power plants was introduced. This is expected
to reduce methane emissions from gas engines through behavioural changes such as
changing from motor operation to boiler operation and establishing mitigation
measures. Consumption is also expected to fall as the price of heat will increase.
These behavioural changes will result in falls in the emissions of unburned methane
from power stations. In addition, CO
2
emissions will fall and consumption of natural
gas will fall. In total, a decline of 0.06 million tonnes CO
2
equivalent emissions in 2
out of 5 years is expected, corresponding to an average annual reduction effect of
approximately 0.02 million tonnes CO
2
equivalent per year in 2008-12.
Table 4.15
17
contains an overview of all existing taxes and duties relevant to
greenhouse gas emissions in Denmark.
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T
ABLE
4.15 O
VERVIEW OF
T
AX AND
D
UTY
M
EASURES
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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4.3.4 The National Green Climate Fund
In connection with the PSO Agreement of 2016 a majority of political parties in the
Danish parliament decided to allocate funds to a national green climate fund. The
fund is targeted initiatives accross all sectors that promote the green transition in an
appropriate manner, including in particular initiatives that can contribute to the to the
achievement of Denmark’s 2030 greenhouse gas emission reduction
target in the
non-ETS sector, etc. The total budget for the fund is DKK 375 million for the period
2017-2020 - with DKK 50 million in 2017, DKK 50 million in 2018, DKK 100
million in 2019 and DKK 175 million in 2020.
In June 2017, the 1
st
allocation of the budget was decided. From the budget for 2017,
2018 and partially 2019 a total of DKK 104-106 million has been allocated for the
initiatives mentioned in Table 4.16. A short description of the initiatives is included
below.
The estimated greenhouse gas emission reduction effect of these initiatives is in total
up to 56,000 tonnes of CO
2
eq. annually in the period 2021-2030.
T
ABLE
4.16 O
VERVIEW OF THE INITIATIVES IN THE
1
ST
ALLOCATION OF FUNDS IN THE
N
ATIONAL
G
REEN
C
LIMATE
F
UND
DKK million
2017
2018
2019
2020
Annual budget
50
50
100
175
Measures in the district heating sector
1.1 Establishment grants for electric heat pumps on non-
23.9
28.9
-
-
ETS cogeneration plants
1.2 Mapping and advisory efforts for decentralized CHP
4.0
6.0
4.0
-
plants
Other actions
2. Recycling system for flammable refrigerants
2.5
-
-
-
3. Reduced retention time for slurry in stables
0.0
9.0
-
-
4. Climate-friendly road surface
0.6
3.1
-
-
5. Demonstration project - bio refinery plant
8.0
-
-
-
6. Measurement of nitrous oxide from wastewater
-
3.0
2.0
-
7. Heat pumps on subscription for the business sector
11.0
-
-
-
st
Total 1 allocation
50.0
50.0
6.0
-
1.1 Establishment grants for electric heat pumps on non-ETS cogeneration plants
For the purpose of promoting heat pumps, a temporary pool is set up for collective
heat pumps at non-ETS cogeneration plants. The scheme includes heat pumps that
utilize different heat sources, including surplus heat, heat from wastewater treatment
plants, etc. The support will ensure a good framework for choosing heat pumps.
1.2 Mapping and advisory efforts for decentralized CHP plants
A targeted advisory scheme for decentralized CHP plants is introduced within and
outside the ETS sector. The advice includes technical, administrative, financial and
financial matters. The scheme shall include identification of concrete actions at the
plants that can lower the heat price for consumers and greenhouse gas emissions
from heat production. The technical efficiency improvements of the CHP plants are
expected to lead to CO2 reductions in the sector.
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2. Recycling system for flammable refrigerants
Funds are set aside for establishing a recycling system for climate-friendly but
flammable refrigerants in cooperation with the refrigeration industry. In general, for
fluorinated refrigerants, the more climate-friendly they are (low GWP), the greater
flammability. With the establishment of a new recycling system, a significant barrier
for the wider and accelerated use of climate friendly, but flammable, refrigerants is
eliminated.
3. Reduced retention time for slurry in stables
Funds are allocated for a travel team that can support the 27 existing biogas joint
facilities to conduct further investigations of barriers, development of solutions with
more frequent collection of slurry from suppliers, as well as information / advice to
suppliers regarding the importance of frequent collection in order to utilize the gas
potential of the slurry. Biogas plants are generally expected to be of great interest in
getting the slurry faster for degassing as it will provide a larger amount of gas with
the same amount of slurry.
4. Climate-friendly road surface
A demonstration road with climate-friendly road surface / asphalt is set up with the
aim of obtaining final clarity regarding laying techniques, durability and functional
properties. In addition to delivering concrete reductions, the demonstration project
will ensure that material selection and evaluation techniques have been tested and
optimized in a real production environment.
5. Demonstration project - bio refinery plant
A pool will be allocated for targeted support for projects concerning establishment of
a green bio refinery pilot plant. The establishment of a pilot plant for bio refining of
green biomass can promote the use of agricultural crops with more positive climate
and environmental impacts than, for example, grain crops. Bio refining of clover
grass can produce a pulp for biogas, press cakes for cattle feed and protein
concentrate for fodder products. The purpose of the pilot plant is to qualify, optimize
and demonstrate the technology. The objectives are to reduce the technology costs,
create a market segment and to map expected effects and side effects.
6. Measurement of nitrous oxide from wastewater
A prerequisite for reducing the emission of nitrous oxide from wastewater treatment
plants is more accurate knowledge of the processes that lead to nitrous oxide
formation. A pool is therefore established for tests on the measurement and
regulation of nitrous oxide at the wastewater treatment plants. The purpose of the
project is to 1) improve the accuracy of the national greenhouse gas emission
inventories, 2) establish the basis for more accurate shadow price calculations for
reduction measures in the area, 3) provide a basis for reducing nitrous oxide
emissions from wastewater treatment plants that receive means for measuring and
regulating nitrous oxide emissions as well as in other Danish wastewater treatment
plants.
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7. Heat pumps on subscription for the business sector
A pool is being established to support the purchase of a number of heat pumps by a
number of energy service companies that they install with their customers. It is
expected that the scheme will lead to a large number of conversions from oil
furnaces to heat pumps in the business sector during the next 4 years. It is also
expected that the initiative could initiate a commercial market for fossil fuel
conversion at companies.
In November 2017, the 2
nd
allocation of the budget was decided with the Agreement
on Business and Entrepreneurship Agreement. From the budget for 2019 and 2020 a
total of DKK 242,3 million has been allocated for lowering the electric heating tax
cf. Table 4.17 (initiative no. 8). A short description of the initiative is included
below.
T
ABLE
4.17 O
VERVIEW OF THE INITIATIVE IN THE
2
ND
ALLOCATION OF FUNDS IN THE
N
ATIONAL
G
REEN
C
LIMATE
F
UND
DKK million
2017
2018
2019
2020
Annual budget
100,0 175,0
1.2 Mapping and advisory efforts for decentralized CHP plants
6. Measurement of nitrous oxide from wastewater
4,0
2,0
8. Lower electric heating tax
Total 2
nd
allocation
Note: 2019 prices, including costs of administration
67,3
67,3
175,0
175,0
8. Lower electric heating tax
Reducing the electricity heating tax increases the incentive to use electric heat
pumps, etc. in district heating production as well as in households and in business. It
will also increase the incentive to use surplus heat. Reducing the electric heating
charge will thus promote electrification in the heat supply and strengthen the green
conversion. The parties to the Agreement on Business and Entrepreneurship agreed
to reduce the electricity heating tax by an additional DKK 0.05 per kWh in 2019 and
DKK 0.1 per kWh in 2020 funded by the funds allocated for the National Green
Climate Fund.
In May 2019, the 3
rd
allocation of the budget was decided. Following the agreement
on allocation of funds from June 2017 and the allocation of funds in connection with
the Agreement on Business and Entrepreneurship Agreement in November 2017,
there was DKK 26.7 million left to be allocated in 2019. As agreed in May 2019, a
total of DKK 26.7 million has been allocated for the initiatives mentioned in Table
4.18. A short description of each initiative is included below.
T
ABLE
4.18 O
VERVIEW OF THE INITIATIVES IN THE
3
RD
ALLOCATION OF FUNDS IN THE
N
ATIONAL
G
REEN
C
LIMATE
F
UND
DKK million
2017
2018
2019
2020
-
Annual budget
26.7
9. GHG accounting and awareness building at farm-level
7.7
-
10. Climate-friendly feed production
2.0
-
11. Promotion of green biorefining
14.0
-
12. Promoting climate-friendly construction
3.0
-
nd
Total 2 allocation
26.7
-
Note: 2019 prices, including costs of administration
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9. Greenhouse gas accounting and awareness building at farm-level
There is a need to strengthen the individual farmer’s knowledge of the climatic
consequences of their production. Furthermore, provide them with some
management tools to be able to plan their agricultural operation more climate-
friendly. Therefore, an initiative is initiated to develop a concept for greenhouse gas
accounting at the farm-level as well as an advisory concept in relation to climate-
friendly production.
10. Climate-friendly feed production
Danish agriculture largely imports feed from abroad. Production and transport of
these results in emissions of greenhouse gas. Increased production of grass protein in
Denmark can help reduce greenhouse gas emissions and at the same time have a
positive climate effect in Denmark, if cultivation of grass replaces the production of
maize and grain. Therefore, an experiment is initiated on climate-friendly feed
production, which will help to develop a Danish production of climate-friendly feed.
11. Promotion of green biorefining
Continued development of biorefining can help increase the demand for grass, which
is a more environment- and climate-friendly crop than an annual grain crop. In order
to make grass an attractive and competitive crop, the subsidy framework is extended
to a scheme regarding promotion of green biorefining from the January 2018
Targeted Regulation Agreement to support commercial prototype plants.
12. Promotion of green building
Upscaling of the best solutions in green building - including wood construction -
must ensure a lower climate impact from the construction. Therefore, there is a need
to initiate analysis work and knowledge sharing to ensure that all construction
partners can put the latest knowledge, research and innovation into practice. An
initiative to promote green building must be initiated, which through a series of
analyzes, etc. can gather knowledge and support learning about construction with
low climate impact. The work may play a role in any subsequent work on developing
a national strategy for green building.
4.3.5 Energy (Fuel Combustion, including Transport, and Fugitive Emissions
from Fuels)
Greenhouse gas emissions from energy (as defined by the 2006 IPCC Guidelines for
greenhouse gas inventories
–
i.e. from energy consumption and
–
in the case of
Denmark
–
from flaring) made up 71% of Denmark's total greenhouse gas emissions
in 2017 (without LULUCF), of which CO
2
was the primary emission. 97.7% of the
emissions from the energy sector are CO
2
. 1.1% is methane (CH
4
), and the remaining
1.2% is nitrous oxide (N
2
O).
4.3.5.1
CO
2
Energy production and energy-consuming activities in the transport sector and
industry are main contributors to the total emissions of CO
2
due to use of large
quantities of coal, oil and natural gas. The energy sector is, therefore, centrally
placed in efforts to reduce emissions of CO
2
.
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Many initiatives have been taken over the years to reduce the emissions, and work is
still going on to find the best and most cost-effective measures with the objective to
fulfil Denmark's international climate obligations.
Danish experience shows that through persistent and active energy policy focus on
enhanced energy efficiency and conversion to cleaner and renewable energy sources,
it is possible to sustain high economic growth and at the same time reduce fossil fuel
dependency and protect the environment.
The energy sector is fully liberalised. Today, electricity production from Danish
power plants is controlled by market forces. Danish electricity generation is traded
freely across national borders on the Nordic and the north-German electricity
markets. Thus there is a significant extent of integration in the Northern European
electricity market. This entails, for example, that increased use of renewable energy
in the Danish electricity system or enhanced efforts to save electricity do not
automatically mean that generation at coal-fired power plants is reduced
correspondingly during the first commitment period of the Kyoto Protocol 2008-
2012.
The introduction of the CO
2
allowance regulations through the EU emissions trading
scheme (EU ETS) has been pivotal for Denmark’s possibilities to comply with the
climate commitments. The EU ETS constitutes a central instrument in ensuring that
the Danish energy sector is enabled to provide the reductions required if Denmark is
to comply with its climate obligations. At the same time, the EU ETS permits
significant improvements to the cost effectiveness of Denmark's climate effort.
The government’s long-term
objective is to become a nation with an energy supply
solely based on renewable energy sources and thus independent of fossil fuels.
The objective of the Danish energy policy today is security of supply, environmental
concerns, energy savings and well-functioning energy markets within frameworks
that secure cost effectiveness. Several initiatives often meet more than one of the
purposes mentioned at the same time. Efforts concerning climate change should thus
be seen in a broader context than CO
2
alone, not least when it comes to the purpose
and calculation of effects.
Denmark gave priority to renewable energy sources and energy efficiency early on.
Most of the public support schemes and regulations have prioritised energy
efficiency and renewable energy. In this respect the development in Denmark has
been quite different from other IEA countries, which have invested in new energy
supply
–
notably nuclear energy.
Danish public support programmes have instigated competition amongst private
companies. Most public support for energy research and development in Denmark
has been open for competing applicants. Similarly, all procurement of energy
technologies induced by public schemes has followed EU rules requiring open
tenders or has left it to competitive markets in general.
A large number of policies and measures have been implemented over the years to
meet the various energy-policy objectives cf. Table 4.16.
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4.3.5.1.1 The allowance regulation relevant to the energy sector
A key instrument for reaching the goals for emission reductions is the EU Emission
Trading Scheme (EU ETS), which is a CO
2
allowance scheme for energy production
and energy-intensive industries as described in section 4.3.1. The EU Member States
have devised this trading scheme for greenhouse gas emissions in order to fulfil the
international climate commitments set out in the Kyoto Protocol, in particular with
the aim of reducing CO
2
emissions from energy production and energy-intensive
industries.
The allowances scheme entered into force on 1 January 2005. The 2005-2007 period
was used as a testing phase. The EU ETS Directive has been revised a number of
times.
The allowance allocation for 2008-2012 was determined on the basis of the national
allocation plan from July 2006, submitted the European Commission. The EU ETS
2008-2012 has been an important measure in Denmark's fulfilment of its climate
obligations under the first commitment period of the Kyoto Protocol. The scheme
aligns well with government policy for the energy area on liberalisation of the energy
markets and management of environment efforts by the market.
The installations subject to the allowance regulations account for a little less than
half of Danish emissions of greenhouse gases. Almost all major Danish installations
with considerable emissions are covered by the ETS. Most of these are generators of
power and heat, the rest are industrial enterprises plus a few production units within
the offshore sector.
Both the statutory and the administrative basis for the scheme have been established.
The necessary legal basis was adopted by the Danish Folketing in June 2004 and the
2008-2012 national allocation plan was approved by the European Commission on
31 August 2007.
According to the national allocation plan for the period 2008-2012 an average annual
allowance of 24.5 million tonnes CO
2
has been allocated. According to the allocation
plan this should correspond to a drop in annual emissions of about 5 million tonnes
per year in 2008-2012, or a reduction of about 17% compared with emissions
expected in the national allocation plan for the period. This level was set by
balancing environmental considerations against competitiveness and jobs:
•
Electricity and heat producers were allocated about 15.8 million EAUs. The
allowance for electricity generation is allocated
as ”per kWh”, while for heat
production allowances are allocated according to emissions in the base years
1998-2004.
The other 133 installations (industry and offshore) have been allocated
allowances corresponding to emissions in the base years 1998-2004. A total
of 8.2 million tonnes CO
2
per year have been allocated to industry and
offshore.
A special reserve of 0.5 million tonnes CO
2
per year has been allocated with
free allowances for new installations and significant extensions to existing
units.
•
•
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Allowances not allocated by the end of the commitment period or returned due to
closures have been auctioned. The period 2008
–
2012 was finalized in 2013 with the
final surrendering of allowances and credits by companies participating in the EU
ETS as shown in section 4.3.1.
The new EU Climate and Energy Agreement from December 2008 extended the ETS
system to 2013-2020 in order for the EU to reduce CO
2
emissions by 20% in 2020.
At the same time allocation was centralised and auctioning is to be used more
extensively from 2013. The allowances have been calculated for this period in
accordance with the EU benchmarking decision 2011/278/EU.
The legislative framework of the EU ETS for its next trading period 2021-2030
(phase 4) was revised in early 2018 to enable it to achieve the EU's 2030 emission
reduction targets in line with the 2030 climate and energy policy framework and as
part of the EU's contribution to the 2015 Paris Agreement. Phase 4 of the EU ETS is
still under implementation.
4.3.5.1.2 Energy and CO
2
taxes
Taxes have also been used for many years as an instrument to reduce CO
2
emissions
from the energy sector, since fuels used for heat production are subject to energy and
CO
2
taxes. The main objective is general GHG reductions and the promotion of the
use of fuels with lower CO
2
emissions, mainly biomass. Energy and CO
2
taxes are
described in detail in section 4.3.3.
4.3.5.1.3 Combined heat and power
The main elements of the Danish strategy to promote renewable energy and the
efficient use of energy resources since the end of the 1970s have been increased use
of CHP and expanding of district heating areas. Effective heat supply planning has
ensured the highest share of district heating and CHP in the Western Hemisphere.
This has secured early markets for district heating technologies and a possibility for
the use of many renewable energy sources like straw, municipal waste, wood waste
and geothermal energy. About half of Denmark's domestic electricity consumption is
produced on CHP plants, and the potential for further use of CHP is limited. Wind
energy delivered about 43 % of domestic electricity supply in 2017 and is expected
to deliver around 53% of domestic electricity supply by 2020. For this reason the
CHP production is expected to be reduced in the future, though CHP and the
valuable services CHP plants provide - also in terms of back up capacity - is
expected to remain an integral part of the overall system. CHP has been promoted
partly by the tax system, partly by electricity production subsidies for biomass and
biogas, partly by feed-in
tariffs (replaced later by a “base subsidy”).
One of the initiatives in the 2018 Energy Agreement is the modernisation of the
heating sector and mitigating the impacts of eliminating the “base subsidy”.
The regulations governing our heat production require modernisation. The energy
agreement proposes a change of direction, granting greater flexibility and promoting
new green solutions and technologies.
Regulatory constraints on the heat production of district heating plants will be
eliminated, giving them the freedom to invest in transitions to greener energy, e.g.
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heat pumps, biomass and geothermal systems, thus enabling the transition towards a
renewable energy system. The regulatory relief for individual district heating plants
will depend on the size of their district heating areas. The last constraints are
expected to be lifted by 2030 at the latest.
The 2018 Energy Agreement gives consumers a greater freedom of heating choice.
The power to obligate consumers to be connected to the collective heating system
will be abolished. This will allow for investment in other individual heating
solutions, e.g. heat pumps for single homes.
No new consumer obligations will be permitted as from January 2019, while the
consequences of repealing existing consumer obligations will be analysed before the
parties to the agreement make a decision on such repeals.
The modernisation will ensure that the district heating sector remains viable without
public subsidies once the so-called
“base subsidy” is phased out. In the short term,
the elimination of this base subsidy may cause higher heating bills for some
consumers. Therefore, the energy agreement allocates 540m DKK in the period
2018-2023 for targeted efforts to help heating plants and consumers, and to help
manage stranded costs.
The 2018 Energy Agreement will improve the legal and regulatory framework for
the heating sector, supporting more voluntary investment in green solutions. This
will facilitate the breakthrough of new technologies
–
heat pumps, geothermal
solutions, solar PV, etc
– in heating plants and in consumers’ homes.
4.3.5.1.4 Renewable energy
The increasing use of renewable energy sources is reducing emissions of CO
2
from
fossil fuels. The long term goal for the Danish government is to be a climate neutral
society by 2050. The initiatives in the 2012 Energy Agreement cover the energy
policy areas for the period until 2020. With the 2018 Energy Agreement additional
initiatives for the period after 2020 was adopted.
The expected headline results for 2020 are the following: more than 40% renewable
energy in final energy consumption; approximately 50% of electricity consumption
to be supplied by wind power; gross energy consumption will continue to drop up to
2020, but then rise slightly towards 2030; and greenhouse gas emissions will be
reduced by 37% compared to 1990.
The expansion of energy from offshore wind turbines after 2020 will help ensure that
nearly
55% of the nation’s energy needs are met with renewable
energy by 2030.
Renewable energy sources are promoted with economic measures, including use of
energy and CO
2
taxes on fossil fuels and through the Public Service Obligation
Schemes (PSO), which have been a supplement to the price of electricity paid by all
consumers until 2017. The Danish PSO levy will be phased out during a period of 5
years (2017-2022), and the financing of support to renewables will gradually shift to
the State Budget.
As a first step a political agreement was reached in September 2017 on technology
neutral tenders in 2018 and 2019 allowing photovoltaic panels and wind turbines to
compete to deliver the most green power to consumers. The total budget for the
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tenders in 2018 and 2019 is approx. DKK 0.5 billion. In the 2018 a total of 160 MW
onshore wind projects and 100 MW solar PV projects won in the tender round with
an weighed average price premium of 23 DKK per MWh for a 20 year period.
In addition to the tender scheme, it was also agreed to allocate DKK 150 million for
new test wind turbines to be established both inside and outside the two national test
centres for large wind turbines in 2018 and 2019.
In accordance with the 2018 Energy Agreement renewable energy on market
conditions will be pursued. This includes a continuation of the technology neutral
tenders in 2020-2024 with a total budget of DKK 4.2 billion. The costs of
establishing offshore wind turbines have decreased significantly in recent years. To
support the continuation of this trend, the energy agreement will facilitate the
creation of a better framework for realising Denmark’s offshore wind potential
without state subsidies. However, subsidies may remain necessary for the installation
of cables that transport green electricity from offshore
wind farms to consumers’
outlets.
The 2018 Energy Agreement also establishes a reserve of 400m DKK in 2025 and
500m annually from 2026 to support further efforts to advance the use of RE.
The parties further agreed to allocate funding of 250m DKK annually in 2026-2030
for climate-related efforts. The parties also noted that the gradual expiration of
subsidies funded by the PSO tax will free up finances that will be utilised to fund the
initiatives in the 2018 Energy Agreement.
Wind power
The 2012 Energy Agreement includes a target of applying another 1900 MW of new
capacity from onshore and offshore wind by the end of 2021. Most of the new
capacity will come from offshore wind power. In this respect the Danish Energy
Agency was responsible for tendering 1350 MW new offshore capacity: The Horns
Rev 3 tender of 400 MW in the North Sea, which was inaugurated on 22 August
2019
13
, the Kriegers Flak tender of 600 MW in the Baltic Sea with expected
commissioning in the period 2019-21 and the so-called near shore tender of 350 MW
–
Vesterhav Nord and Syd - with expected commissioning in 2023. Also following
from the 2012 Energy Agreement the Nissum Bredning test project (28MW) was
inaugurated on 12 May 2018
14
. As a result, wind energy is expected to cover 50 % of
Danish electricity consumption in 2020.
The 2018 Energy Agreement includes the establishment of three new offshore wind
farms 2018-2030 that will supply at least 2,400 MW of green electricity to the energy
system
15
–
more than the total combined electricity consumption of all Danish
households. A variety of factors will be considered before choosing the location of
the offshore wind farms, including cost, the surrounding environment, and seabed
conditions. A cost-effective expansion of wind energy is essential. Therefore, a
sound procurement process will allow for maximum competition to achieve the
13
https://kefm.dk/aktuelt/nyheder/2019/aug/danmarks-stoerste-havmoellepark-viser-vejen-mod-groen-fremtid/
and
https://group.vattenfall.com/press-and-media/news--press-releases/pressreleases/2019/vattenfall-inaugurates-scandinavias-
largest-offshore-wind-farm
14
https://www.tvmidtvest.dk/artikel/her-er-de-vilde-med-vindenergi-moeller-rejst-uden-protester
15
This was reported as Planned Measure no. E1 in the draft NECP as it was not included in the WEM-projection scenario. The
measure is now included in the August 2019 WEM-projection scenario and therefore reported here as adopted.
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lowest possible price. In recognition of the significant aesthetic impact that offshore
wind turbines can have on the coastal landscape, the energy agreement expands the
power of municipalities to reject offshore wind turbines from 8 km to 15 km off the
shore.
Biomass
In 2017, biomass accounted for approximately 54% of renewable-energy production,
mostly in the form of straw, wood pellets, wood chip and biodegradable waste for
incineration. Approximately 82% of the biomass was imported, mainly in the form of
wood pellets (54 PJ), biofuels (10.4 PJ), wood chips (5.5 PJ), fire wood (2.6 PJ) and
biodegradable waste for incineration (2.2 PJ).
The energy production from biomass has more than doubled since 1990 - primarily
due to the policy agreement from 1993 (the Biomass Agreement: requires power
plants to use 1.4 million tonnes of straw and wood, equivalent to almost 20 PJ per
year) and the policy agreement from February 2008 on the increased use of straw and
chips at the large co-generation plants (up to 700,000 tonnes in 2011). At the same
time, the consumption of biomass continues to rise as a source of energy for the
supply of heat in district-heating plants and in smaller installations for households,
enterprises and institutions.
Although it was demonstrated in Denmark in the mid-1990s that biogas plants can be
established with reliable operation and with an acceptable economy biogas still only
accounted for 6.5% of renewable-energy production in 2017.
Liquid biofuels, such as animal and vegetable oils, biodiesel and bioethanol, is used
only on a small scale. Liquid biofuels from bio-waste by the so-called second
generation technologies are now at a low level.
4.3.5.1.5 Fuel conversion from coal to natural gas
Substitution of coal and oil by natural gas reduces emissions of CO
2
. The first Danish
natural gas was landed from the Danish sector of the North Sea in 1984, and since
then consumption of natural gas has increased to 193 PJ in 2001. Since then,
consumption has decreased to 117 PJ in 2017 due mainly to high gas prices. In 2017,
natural gas covered 16% of gross energy consumption. In the power sector, natural
gas was introduced in 1985 and peaked with 25% around 2000. In 2017, this had
decreased to 7.6%, mainly due to the relation between power prices and gas prices.
The use of natural gas is expected to decrease further as a result of introducing more
renewable energy and extensive energy-saving policies.
In accordance with the 2018 Energy Agreement, the government will formulate a gas
strategy that will provide the necessary basis for a market-based and commercially-
utilized gas system. The strategy will, inter alia, explore the potential of biogas and
other green gases, thus contributing to a climate-neutral Denmark by 2050 at the
latest.
4.3.5.1.6 Research and development
Danish support for new energy technologies has been comprehensive and relatively
stable. A long list of direct and indirect support schemes and policies have, in
combination, created a domestic market which has given Danish companies a boost.
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This boost has enabled many companies to become international market leaders.
Danish companies continue to enjoy commercial success within the energy-related
marketplace.
R&D activities include energy savings, more efficient energy conversion, renewable
energy technologies and efforts within System Integration and Smart Energy.
Research and development activities in the field of energy are not motivated solely by
climate issues, but are relevant to climate issues, since they contribute to determining
the overall framework for the CO
2
intensity of energy production and consumption in
the future.
There is a broad political commitment to support R&D activities through public funding
and the Danish Government has in its manifesto by November 2016 stated that
Denmark is committed to an ambitious green transition for the national energy supply.
This calls for comprehensive R&D efforts for the development of improved and new
sustainable energy technologies.
Denmark is one of the partners in the public-private initiative Mission Innovation
comprising 22 countries and the European Commission. The aim of Mission
Innovation, that was founded in relation to the COP21 in Paris 2015, is to strengthen the
multilateral R&D efforts within clean energy technologies to promote a continuous cost
effective green transition of the energy systems.
Thus Denmark as one of the partners has chosen to strengthen the dedicated public
investments in clean energy research, development and demonstration focusing on
reduction of technology costs and CO
2
emissions and with an emphasis on innovative
projects that can be replicated and scaled up with the involvement of private investors.
Denmark will seek to double these efforts departing from a baseline of the average
funding to the Danish Energy Technology Development and Demonstration
Programme (EUDP) of the years 2015-2016 and until 2020 where DKK 580 million
will be allocated.
The EUDP programme was established in 2008 and since then the programme has
supported more than 600 projects with a total of DDK 3 billion. On average, 45-50% of
the activities under the Programme are financed by the EUDP and hence the private
investments in the supported projects are of the same size as the public support leading
to approximately to DKK 6 billion in total investments. The Danish Parliament has
dedicated DKK 400 million for EUDP for the fiscal year 2018.
A minor programme is administrated on behalf of the power distribution companies by
the Danish power association Dansk Energi. The objective is to support research and
development within energy-efficient use of electricity through development of energy-
efficient products and processes in buildings, industry etc. The annual funds for this
programme are DKK 25 million.
Activities relating to strategic research and innovation in general are since 2014
administrated by Danish Innovation Fond. The Fund covers all sorts of research and
innovation projects and is not limited to energy matters. However, for 2017 and 2018
DKK at least 100 million /year will be earmarked for R&D within new and clean
energy technologies.
In 2018, the energy and climate research was strengthened with the 2018 Energy
Agreement.
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The parties to the 2018 Energy Agreement intend to phase in additional state funding
for energy and climate research, going from 580m DKK in 2020 to a target of 1 billion
DKK annually from 2024. These funds will be earmarked for research, development
and demonstration of new technology.
Intensifying energy and climate research as we move towards 2030 will ensure
continued efforts
to develop the technologies that will help Denmark’s energy system
transition to cleaner and greener solutions. Research and development in new energy
and climate technology solutions will also generate new opportunities for growth, jobs
and Danish technology exports.
The research funding will support Denmark’s commitment to the international
collaboration Mission Innovation, in which a number of countries have pledged to
increase energy research funding by 2020. With an ambitious funding target of 1 billion
DKK from 2024 onwards, Denmark further cements its long-term commitment to
research, development and demonstration in the field of energy and climate. Through
Danish initiatives such as the Energy Technology Development and Demonstration
Program (EUDP) and Innovation Fund Denmark, Denmark is contributing to the global
cooperation to develop the energy and climate technologies of tomorrow.
The EUDP funding will support the development and demonstration of Danish energy
technology solutions, with a view to subsequent commercialisation. These solutions
may range from new floating foundations for offshore wind turbines, to large scale
demonstration projects such as Nordhavns Lab, which intelligently integrates various
energy technology solutions.
Strategic and applied energy research is among the many activities supported by
Innovation Fund Denmark. This funding is awarded directly to talented researchers,
entrepreneurs and companies, as well as to others with strong ideas about energy
technology solutions for the benefit of society.
4.3.5.1.7 Energy savings
Reducing energy consumption by increasing energy efficiency and promoting energy
saving is a very important element for Danish energy policy.
Among the grid and distribution companies (electricity, natural gas, oil and heating),
the electricity companies have been working with energy savings since the early
1990s and the natural gas and district heating companies have been working with
energy savings since 2000.
Since 2006, several political agreements have been reached to significantly
strengthen the energy savings efforts in Denmark.
The obligations have been implemented as voluntary agreements between the
Minister of Energy, Utilities and Climate and grid and distribution companies.
Energy
companies’
costs are financed by a levy on their tariffs.
In the policy agreement from 2012, the obligation for the grid and distribution
companies in the electricity, natural gas, district heating and oil sectors was increased
by 75% in 2013 and 2014 (to 10.7 PJ) and by 100% in 2015 (to 12.2 PJ). In
December 2016, the Minister of Energy, Utilities and Climate entered a new
agreement on energy savings with the grid and distribution companies for the period
2016-2020. The obligation was decreased from 12.2 PJ to 10.1 PJ in 2016 to 2020.
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The agreement ensures
Denmark’s
continued implementation of Article 7 of the EU
Energy Efficiency Directive.
Targeted work to improve energy efficiency specifically in the public sector has been
going on for many years, and considerable savings have been achieved. In 2014 a
new circular on energy efficiency in state institutions was reviewed in line with the
requirements in Articles 5 and 6 of the EU Energy Efficiency Directive.
The ministries obligated under the existing Ministerial Order are bound by an energy
savings target, but are at liberty to pursue the instruments which are most cost
effective in their particular circumstances, including deep renovations; behavioural
measures etc.
Data on energy consumption in the public sector have been collected for some years
as means of rendering the sector's energy consumption visible.
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2127986_0042.png
T
ABLE
4.16 M
EASURES IN THE ENERGY SECTOR
(S
EE ALSO SPECIFIC MEASURES IN
T
ABLE
4.17 (B
USINESS
), 4.18 (H
OUSEHOLD S
)
AND
4.19 (T
RANSPORT
)).
Name of mitigation action
Included in with
Sector(s)
measures GHG
affected
projection scenario
GHG(s)
affected
Objective and/or activity affected
Type of
instrument
Status of
implementation
Brief
description
Start year of
imple-
mentation
Implementing entity
or entities
Estimate of
mitigation impact
(not cumulative,
in kt CO2 eq)**
2020
IE (G1, G3
and G4)
2030
IE (G1, G3
and G4)
Source of estimates
EN-1: EU-CO2-emission trading scheme
for electricity and district heat
production and certain industrial
processes (incl. Business) and aviation
from 2012
Yes*
Energy,
Industry/Industrial
processes, Cross-
cutting
CO2
Switch to less carbon-intensive fuels
Regulatory,
(Energy supply), Increase in renewable
Economic
energy (Energy supply), Efficiency
improvement in the energy and
transformation sector (Energy supply),
Control of fugitive emissions from energy
production (Energy supply)
Implemented
See text.
2005
Government: Danish
Energy Agency and
entities uner the EU
ETS
EN-2: Biomass Agreement (Agreement
on the use of biomass in electricity
production)
Yes*
Energy
CO2
Increase in renewable energy (Energy
supply)
Economic,
Voluntary
Agreement
Implemented
See text.
1993
Government: The
electricity producers
1100
and IE (G1
and G3)
1100
and IE (G1
and G3)
Estimates in 2017 - based on The 2005 Effort Analysis
(http://www2.mst.dk/udgiv/publikationer/2005/87-7614-587-5/pdf/87-7614-588-
3.pdf and http://www2.mst.dk/Udgiv/publikationer/2005/87-7614-589-1/pdf/87-
7614-590-5.pdf (summary in English included in Annex B2 )).
EN-3: Price supplement and subsidies
for renewable energy production
Yes*
Energy
CO2
Increase in renewable energy (Energy
supply)
Economic
Implemented
See text.
2008
Government: Danish IE (G1 and
Energy Agency and
G3)
entities responsible
for energy production
IE (G1 and
G3)
EN-4: Tenders for offshore wind
turbines
Yes*
Energy
CO2
Increase in renewable energy (Energy
supply)
Regulatory
Implemented
See text.
2013
EN-5(expired): Scrapping scheme for
old wind turbines
Yes*
Energy
CO2
Increase in renewable energy (Energy
supply)
Economic
EN-6: Energy development and
demonstration
Yes*
Energy
CO2, CH4,
N2O
Research and development (), Research
and development (), Research and
development ()
Information
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
greenhouse gas
Implemented
See text.
2008
Government: Danish
Energy Agency and
entities responsible
for energy production
Government: Danish
Energy Agency
IE (G1 and
G3)
IE (G1 and
G3)
IE (G1 and
G3)
IE (G1 and
G3)
2008
Government: EUDP
IE (G1)
Secretariat c/o Danish
Energy Agency
IE (G1)
G3: All RE mitigation actions
(Renewable Energy) since 1990
Yes*
Combined (EN-2, EN- Combined
3, EN-4, EN-5, BU-8
and TR-8)
Combined (TD-b1, -2, Combined
-3, -4, -5, -6, -7; EN-1;
BU-1, -2, -6, -7, -9, -
10; TR-1a, -1b, -2, -3, -
4, -5, -6, -7, -10, -11, -
12; HO-1, -2, -3, -4, -5,
-6)
Combined
Combined
Combined
Combined
Combined
Combined
29702
58325
Estimated in September 2019 based on the energy projection from August 2019.
The methodology is described in Denmark's 7th National Comminication, Annex
B4.
13231
Estimated in September 2019 based on the energy projection from August 2019.
The methodology is described in Denmark's 7th National Comminication, Annex
B4.
G4: All EE mitigation actions (Energy
Efficiency) since 1990
Yes*
Combined
Combined
Combined
Combined
Combined
Combined
17583
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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4.3.5.1.8 Specific measures in the business sector (Fuel combustion in
Manufacturing Industries and Construction, Commercial/Institutional
and Agriculture, Forestry and Fisheries)
Energy use in the business sector covers energy use in Manufacturing Industries and
Construction, Commercial/Institutional and Agriculture, Forestry and Fisheries (cf.
the 2006 IPCC Guidelines for greenhouse gas inventories). In 2017, energy use in the
business sector was responsible for 13.2% of Denmark's total greenhouse gas
emissions.
In 2017, the greenhouse gas emissions from energy use in the business sector
decreased by approximately 34% from 9.6 million tonnes CO
2
equivalents in 1990 to
6.3 million tonnes CO
2
equivalents in 2017, primarily due to improvements in energy
efficiency and energy savings.
According to the August 2019 projection, the expected emissions from the business
sector’s energy use are an average of
6.3 million tonnes CO
2
equivalents in 2017
decreasing to 5.6 million tonnes CO
2
equivalents in 2030.
The on-going initiatives to reduce emissions from the business sector include
promotion of energy savings and energy-efficiency improvements as well as
conversion of energy production to cleaner fuels. Certain energy-intensive businesses
are also subject to allowances regulation as a consequence of the EU Emission
Trading Scheme.
Analyses have shown that there is a big potential for profitable energy-efficiency
improvements within the business sector, so improving energy efficiency is a vital
area of action.
The measures implemented in the business sector are shown in Table 4.17
17
.
Industry is responsible for most of the sectors' emissions of CO
2
. The emissions
come mainly from energy-consuming activities in industry. Cement and brick
production also contributes especially high levels of CO
2
, due to the raw materials
used.
The main instrument to reduce CO
2
emissions in energy-intensive industry is the
EU’s emission allowance scheme, covering about 120 industry installations.
Business and industry have introduced major energy efficiencies over the past 25
years. This is mainly due to a green tax package for the business sector, which was
firstly introduced in 1995. The package contained a combination of taxes and
discounts for energy intensive enterprises. The package led to a higher CO
2
tax and
the introduction of a space-heating tax for businesses. In order to get the tax
discount, the eligible energy intensive enterprises have to sign an agreement on
energy efficiency with the Danish Energy Agency. With the political agreement on
economic growth from 2013, the CO
2
tax on electricity in production process in the
industry was abolished and the voluntary agreement scheme ended. Electricity
production is thus included in the ETS. With a political agreement on economy
growth from July 2014 it was decided to revive the voluntary agreement scheme. The
new scheme entered into force in September 2015. The current scheme subsidizes
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electricity-intensive enterprises payment of electricity tax (the PSO tax until 2020
–
cf. the phase-out of the PSO mentioned in Chapter 4.3.4.1.4).
Today business not included in the ETS are imposed the CO
2
-tax on their fossil fuels
for process and all business are imposed the CO
2
-tax on their fossil fuels for space
heating regardless of the business is included in the ETS. Business pay an energy tax
of DKK 4,5 per GJ on their fossil fuels used for process and an energy tax of DKK
55,5 per GJ on their fossil fuels for space heating (2018 tax rates). Some business,
e.g. mineralogical and metallurgical processes, are exempt of the energy tax on their
process and agriculture pay a lower rate than DKK 4,5 per GJ. VAT registered
business pay in general a tax on electricity of DKK 0.004 per kWh except on their
electricity for space heating where they pay a higher rate.
As an element in the implementation of the 2012 energy policy agreement, a DKK
3.75 billion (€500m)
fund was established to subsidise industries to convert to
renewable energy. As of August 2013, businesses have been able to get investment
subsidy from this fund to convert from fossil fuel (i.e. coal, oil, gas) to renewable
energy sources (i.e. biomass, solar, wind) or district heating in their production
process. The subsidy also includes investments in energy-efficiency measures. The
estimated effect of this “Renewables for industry” initiative is a reduction of 1
million tonnes of CO
2
per year from 2020 and onwards. As a result of a political
agreement of November 2016, the scheme expired at the end of the 2016.
Large enterprises in Denmark are by law required to have a mandatory energy audit
every fourth year. The law is no. 345 of 8
th
of april 2014
“Lov om ændring af lov om
fremme af besparelser i energiforbruget, lov om varmeforsyning, lov om kommunal
fjernkølig og forskellige andre love”.
The law transposes the energy efficiency
directive article 8. Denmark has defined large enterprise in accordance with the EU
definitions saying that enterprises that do not fall under the category of micro, small
and medium-sized
enterprises, in accordance with the Commission’s
recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro,
small and medium-sized. Enterprises with ISO 50,001 or ISO 14,001 are exempt.
The deadline for the first energy audits was the 5
th
of December 2015 and afterwards
every fourth year. The scope of the energy audit is buildings, processes and transport.
There is no requirement of implementing the energy saving proposals from the
energy audits.
As part of a political agreement on economic growth from June 2014 a DKK 40
million (5.4 mio. EURO) fund was established to run a centre for energy savings in
enterprises. The money was given for the period 2014-2017. The aim of the centre is
to identify and exploit the energy efficiency potential already existing within
primarily small and medium sized companies. The large companies are covered by
the voulantary agrement scheme and the mandatory energy audit.
With a view to promote targeted energy savings, the 2018 Energy Agreement allows
the current energy efficiency obligation scheme to expire by the end of 2020, and
replaces it with a new subsidy scheme for energy efficiency improvements in
businesses.
The 2018 Energy Agreement introduces a new scheme with subsidies for energy
efficiency improvements in businesses from 2021-2024. These funds will be limited
to 300m DKK and there will be an individual subsidy cap. The scheme for
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businesses targets energy consumed in the delivery of services and manufacture of
products
– also known as “process energy”.
Denmark’s municipalities and regions own a total building mass of more than 36
million square metres. The energy efficient operation and renovation of these
buildings holds great potential for reducing energy consumption. Therefore, the
energy agreement allocates 100m DKK annually in the period 2021-2024 for loans to
finance energy renovations in buildings owned or operated by municipalities and
regions.
The energy agreement allocates 19m DKK in 2018, 33m DKK in 2019, 34m DKK in
2020, and 44m DKK annually from 2021-2024 for information activities relating to
energy savings. This funding is also earmarked for the utilisation of data to promote
energy efficiency.
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2127986_0046.png
T
ABLE
4.17 M
EASURES IN THE BUSINESS SECTOR
Name of mitigation action
Included in with
Sector(s)
measures GHG
affected
projection scenario
GHG(s)
affected
Objective and/or activity affected
Type of
instrument
Status of
implementation
Brief
description
Start year of
imple-
mentation
Implementing entity
or entities
Estimate of
mitigation impact
(not cumulative,
in kt CO2 eq)**
2020
IE (G1 and
G4)
2030
IE (G1 and
G4)
Source of estimates
BU-1: Agreements on energy efficiency
with business
Yes*
Energy
CO2
Efficiency improvement in industrial end- Voluntary
use sectors (Energy consumption)
Agreement,
Economic
Demand management/reduction (Energy
consumption)
Information
Implemented
See text.
1993
Government: Danish
Energy Agency
BU-2: Savings activities by elec. grid,
gas, oil and district heating companies
(consump. of final energy excl. Transp.)
BU-6: Circular on energy-efficiency in
state institutions
Yes*
Energy
CO2
Implemented
See text.
2006
Government: Danish
Energy Agency
60
and IE (G1
and G4)
IE (G1 and
G4)
60
and IE (G1
and G4)
IE (G1 and
G4)
Estimates in 2017 - based on The 2013 Analysis of the Effects of Selected Measures
for the National Audit Office, Danish Energy Agency, December 2013 (
http://www.ens.dk/sites/ens.dk/files/energistyrelsen/Nyheder/kyoto-
samlenotat_9._december.pdf (an English translation is included in Annex B3 ))
Yes*
Energy
CO2
Efficiency improvement in services/
tertiary sector (Energy consumption)
Regulatory
Implemented
See text.
2005
BU-7(expired): Campaigns and
promotion of efficient appliances (
including elec. heating, conversion and
efficient appliances in households)
Yes*
Energy
CO2
Efficiency improvement of appliances
(Energy consumption)
Information
BU-8(expired): Renewables for the
industry
Yes*
Energy
CO2
Increase in renewable energy (Energy
supply)
Economic
BU-9: Mandatory Energy Audit for large
Enterprises
Yes*
Energy
CO2
Efficiency improvement in industrial end- Regulatory
use sectors (Energy consumption)
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
greenhouse gas
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
Implemented
See text.
greenhouse gas
1997
Government: The
Danish Energy Agency
is responsible for the
circular. The
individual ministries
and state institutions
are responsible for
the implementation
of the circular.
Government: The
Minister for Climate
and Energy / The
Danish Energy
Authority
IE (G1 and
G4)
IE (G1 and
G4)
2013
Government: Danish 1000
Energy Agency, other
state authorities,
enterprises
IE (G1)
The estimate for 2020 shown here is a former separate estimate for this measure.
Although this measure has expired it is still included in the list as some effect of
the implementation carried out before expiration remain. But this has not been
quantified separately. The separate estimate shown here is not included in the
calculation of the total effect of all measures.
2014
Government: Danish
Energy Agency
IE (G1 and
G4)
IE (G1 and
G4)
BU-10: The center for energy savings in
enterprises
Yes*
Energy
CO2
Efficiency improvement in industrial end- Information
use sectors (Energy consumption)
Implemented
See text.
2014
Government: Danish
Eneergy Agency
IE (G1 and
G4)
IE (G1 and
G4)
G4: All EE mitigation actions (Energy
Efficiency) since 1990
Yes*
Combined (TD-b1, -2, Combined
-3, -4, -5, -6, -7; EN-1;
BU-1, -2, -6, -7, -9, -
10; TR-1a, -1b, -2, -3, -
4, -5, -6, -7, -10, -11, -
12; HO-1, -2, -3, -4, -5,
-6)
Combined
Combined
Combined
Combined
Combined
Combined
17583
13231
Estimated in September 2019 based on the energy projection from August 2019.
The methodology is described in Denmark's 7th National Comminication, Annex
B4.
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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4.3.5.1.9 Specific measures in the Transport sector
In 2017, the transport sector was responsible for 27.6% of Denmark's total
greenhouse gas emissions. The emissions from the transport sector are primarily CO
2
with a share of 98.9% of the transport
sector’s total greenhouse gas
emissions.
Nitrous oxide makes up approximately 1.1% and methane about 0.1%.
In 2017, the transport sector's final energy consumption - primarily oil products -
made up 27.6% of total final energy consumption in Denmark (without military and
fuel sold for international aviation). The consumption of energy for transport has
increased by 21.5 % since 1990. The most recent baseline scenario from August
2019 predicts an increase in the sector's greenhouse gas emissions peaking with a
24.7 % increase from 1990 to 2023 followed by a 6% point decrease until 2030.
Table 4.18 shows the existing policies and measures within the transport sector. A
number of important steps have been taken by the European Union. Most important
of all is probably the EU’s requirements on average CO
2
emissions for passenger
cars and vans, i.e. the mechanism imposing fines on manufacturers if they fail to
comply with the CO
2
targets
.
CO
2
measures at EU level and Danish measures aimed at reducing the transport
sector’s CO
2
emissions are described under the measures sections below.
The national environmentally motivated measures for the transport sector, which
have also influenced CO
2
emissions, are usually characterised by aiming at limiting
environmental impacts in general. The registration tax and the annual tax (the green
owner tax) which is dependent on the energy efficiency of the vehicle as well as fuel
taxes are assessed to have had considerable effects on CO
2
emissions.
Transport in itself has a number of side-effects in addition to contributing to the
greenhouse effect through higher CO
2
emissions, for example air pollution causing
poor air quality or acidification, noise, accidents and congestion. It is thus important
to note that the various initiatives implemented in the transport area typically address
many of these aspects as well - and thus cannot only be considered in relation to CO
2
emissions.
From 2012 all petrol and diesel for transport sold in Denmark must contain an
average of 5.75% of biofuels, which must live up to the EU sustainability criteria.
According to the Energy Agreement of March 2012 a 10 percent target is foreseen by
2020. However this will depend on the political agreement expected to be reached in
2018-2019.
Cars with high energy efficiencies, such as electric vehicles, are granted large
reductions in the registration tax. Electric vehicles and plug-in hybrid vehicles are
furthermore granted deductions in the registration tax until 2021. Hydrogen vehicles
are exempted from the registration tax until the end of 2020.
Additional taxinitiatives regarding low and zero emission vehicles is planned with
the 2018 Climate and Air proposal. These initiatives are described in chapter
4.3.5.1.12.
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When it comes to transport infrastructure, a historically high level of national-level
investments have been approved since 2009, and the clear majority of these
investments have gone to rail projects (as opposed to road projects). Many of these
projects are currently under construction. Including only major projects
–
and only
projects carried out solely or partly by the national level
–
the value of the current
rail projects under construction is around 129 billion DKK (compared to around 38
billion DKK for current road projects). In 2013, the former government decided to
allocate the future proceeds from a change in the oil industry taxation to a fund for
the improvement of the rail infrastructure in Denmark. The upgrade is expected to
reduce travel times and CO
2
emissions substantially. Given the current, lower oil-
prices and therefore the reduction in income from taxation, the former government
carried out a review of the planned investments. This has resulted in a lower level of
investment from the fund (included in the above mentioned investment totals) where
the electrification of the main lines and the regional lines on Zealand and certain
speed upgrade has been given priority so far. Certain further investments from this
fund can be expected in the coming years, but further rail investments must take into
account the current amount of large and interfering projects, which limits the
feasibility of further rail investments in the shorter term.
The tunnel under the Fehmarn Belt including adjacent landworks will reduce CO
2
emissions by potentially 200,000 tonnes per year. This is mainly due to the following
effects:
1. Rail freight trains will reduce the travel distance by 160 km
2. Rail transport for passengers and freight will be strengthened
3. The current ferry service between Rødby and Puttgarden is expected to cease
operation.
The 2018 Energy Agreement allocates an additional 500m DKK for green transport
solutions over the period 2020-2024.
In accordance with the former government’s
2018 Climate and Air proposal a
commission for the transition to green cars has been established with a view to
analyze measures for the promotion of green cars on a large scale in Denmark. The
commission will also look into how to remove barriers, expand and restructure the
infrastructure for the new car types and economically prepare society for a large
scale expansion of green cars. The green conversion of the transport sector, with the
current tax system, will mean lost revenues for the state. In the state budget today
there is a solid source of income from registration taxes, annual owner taxes, fuel and
other car related taxes of approx. DKK 50 billion annually, which amounts to
approx. 5 pct. of the state's total revenue. Regardless of whether we push technology
development or not, the proceeds from current fuel taxes will decrease as the cars
become more and more energy efficient. The commission will therefore also be
tasked with making proposals that can provide alternative revenues.
Furthermore there will be no registration tax in 2019 and 2020 on green cars priced
below 400,000 DKK. Further information on this is included in Chapter 4.3.3.1.2.
In accordance with the former government’s
2018 Climate and Air proposal
municipalities now have greater powers to grant parking discounts for low-emission
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cars and allow low- and zero-emission cars to run in bus lanes. Cheaper parking in
towns and allowances for driving in bus lanes can make low and zero emission cars
–
and thereby the choice of green transportation in the city
–
more attractive.
Also following from the former government’s
2018 Climate and Air proposal it is
now easier for passengers to choose a green taxi rather than a conventional taxi at
stations and other similar traffic hubs by reserving space for the green taxis at the
front of the queue. The green change of the taxi business is supported through the
initiative to establish more and faster chargers, where special attention is paid to the
taxi business's needs when placing the chargers. Furthermore, up to 300 out of 750
taxi drivers with zero emission vehicles applying for new taxi licenses in 2019 and
2020 are now guaranteed a taxi license.
The oldest diesel cars contribute disproportionately to air pollution in the cities and at
the same time have a higher CO
2
emission than newer diesel cars. Funds for a
temporarily raise of the scrap premium for older diesel cars in 2019, in total DKK
100 million, has been allocated and spent in the period from 1 February to 1 July
2019. With this initiative owners of old diesel cars from before 2006 could receive a
scrap premium of DKK 5,000.
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T
ABLE
4.18 M
EASURES IN THE TRANSPORT SECTOR
Name of mitigation action
Included in with
Sector(s)
measures GHG
affected
projection scenario
GHG(s)
affected
Objective and/or activity affected
Type of
instrument
Status of
implementation
Brief
description
Start year of
imple-
mentation
Implementing entity
or entities
Estimate of
mitigation impact
(not cumulative,
in kt CO2 eq)**
2020
600
and IE (G1,
G4 and G5)
IE (G1, G4
and G5)
2030
600
and IE (G1,
G4 and G5)
IE (G1, G4
and G5)
Source of estimates
TR-1a: EU demands on vehicle
manufactures to deliver fuel efficient
cars and vans
TR-1b(expired): Information campaign
on fuel consumption of new cars
Yes*
Transport
CO2
Efficiency improvements of vehicles
(Transport)
Regulatory
Implemented
See text.
2000
Other: European
Commission
Estimates in 2017 - based on The 2005 Effort Analysis
(http://www2.mst.dk/udgiv/publikationer/2005/87-7614-587-5/pdf/87-7614-588-
3.pdf and http://www2.mst.dk/Udgiv/publikationer/2005/87-7614-589-1/pdf/87-
7614-590-5.pdf (summary in English included in Annex B2 )).
Yes*
Transport
CO2
Demand management/reduction
(Transport), Improved behaviour
(Transport)
Information
TR-2(expired): Energy-correct driving
technique
Yes*
Transport
CO2
Improved behaviour (Transport)
Information
TR-3(expired): Initiative on enforcing
speed limits
Yes*
Transport
CO2
Improved behaviour (Transport)
Information,
Economic
TR-4(expired): Establishment of
intermodal installations
Yes*
Transport
CO2
Modal shift to public transport or non-
Economic
motorized transport (Transport), Improved
behaviour (Transport)
TR-5(expired): Promotion of
environmentally friendly goods
transport
TR-6(expired): Reduced travel times for
public transport
Yes*
Transport
CO2
Modal shift to public transport or non-
Economic,
motorized transport (Transport), Demand Information
management/reduction (Transport),
Improved behaviour (Transport)
Modal shift to public transport or non-
Regulatory
motorized transport (Transport), Demand
management/reduction (Transport)
Yes*
Transport
CO2
TR-7: Spatial planning
Yes*
Transport
CO2
Low carbon fuels/electric cars (Transport), Regulatory
Demand management/reduction
(Transport), Improved transport
infrastructure (Transport)
Low carbon fuels/electric cars (Transport) Regulatory
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of See text.
Implemented
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
Implemented
See text.
Implemented
(and Expired - but
included as it is
expected to have
influenced the level of
Implemented
(and Expired - but
included as it is
expected to have
influenced the level of
Implemented
(and Expired - but
included as it is
expected to have
influenced the
Implemented level of
See text.
2000
Government:
Denmark`s Road
Safety and Transport
Agency
See text.
2000
Government: Ministry IE (G1, G4
of Justice
and G5)
IE (G1, G4
and G5)
See text.
2014
Government: Ministry IE (G1, G4
of Justice
and G5)
IE (G1, G4
and G5)
2014
Government: Ministry IE (G1 and
of Transport and
G4)
Energy,
municipalities, Danish
State Railways (DSB)
Government: Danish
Environmental
Protection Agency,
Haulage contractors
IE (G1 and
G4)
IE (G1 and
G4)
2014
IE (G1 and
G4)
2014
Government: Ministry IE (G1 and
of Transport and
G4)
Energy and Danish
State Railways (DSB)
Local: Municipalities
IE (G1 and
G4)
IE (G1 and
G4)
2000
IE (G1 and
G4)
TR-8: EU requirements regarding
biofuels
Yes*
Transport
CO2
Implemented
See text.
2012
Government: Danish
Energy Agency
290
and IE (G1
and G3)
290
and IE (G1
and G3)
IE (G1)
Estimates in 2017 - based on The 2013 Analysis of the Effects of Selected Measures
for the National Audit Office, Danish Energy Agency, December 2013 (
http://www.ens.dk/sites/ens.dk/files/energistyrelsen/Nyheder/kyoto-
samlenotat_9._december.pdf (an English translation is included in Annex B3 ))
TR-9(expired): Transport infrastructure
projects in the fields of electric
vehicles, gas and hydrogen
Yes*
Transport
CO2
Low carbon fuels/electric cars (Transport), Economic
Improved transport infrastructure
(Transport)
TR-10: Electrification of parts of the rail
infrastructure
TR-11(expired): Investments in a new
metro line and bicycle transport
facilities.
TR-12: Investment in a tunnel under the
Femern Belt
Yes*
Transport
CO2
Improved transport infrastructure
(Transport)
Improved transport infrastructure
(Transport)
Economic
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
Adopted
See text.
2014
Government: Ministry IE (G1)
of Transport
2014
Government: Ministry IE (G1)
of Transport
IE (G1)
Yes*
Transport
CO2
Economic
Yes*
Transport
CO2
Improved transport infrastructure
(Transport)
Economic
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced
Adopted the level of See text.
2014
2028
Government: Ministry IE (G1)
IE (G1)
of Transport,
Local:Municipality of
Copenhagen
Government: Ministry
-300
of Transport
200
Estimates for the construction phase (emissions of 300 kt CO2eq/year) and
operation phase (reduktion of 198.5 kt CO2eq/year) in the 2013 EIA for the project,
Chapter 19 ( https://www.trm.dk/da/publikationer/2013/vvm-for-femern-baelt ).
Estimates in 2017 - based on The 2005 Effort Analysis
(http://www2.mst.dk/udgiv/publikationer/2005/87-7614-587-5/pdf/87-7614-588-
3.pdf and http://www2.mst.dk/Udgiv/publikationer/2005/87-7614-589-1/pdf/87-
7614-590-5.pdf (summary in English included in Annex B2 )).
G5(new): Energy effciency in transport
by passenger cars
Yes*
Combined (TD-6, TR- Combined
1a, TR-1b, TR2 and TR-
3)
Combined
Combined
Combined
Combined
Combined
Combined
550
550
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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4.3.5.1.10 Specific measures in the residential sector
In 2017, the residential/household
sector contributed to Denmark’s total national
greenhouse gas emissions with 2.1 million tonnes of CO
2
equivalents, corresponding
to a share of 4.3%. The residential sector in the greenhouse gas inventory only
includes CO
2
emissions from burning of oil and natural gas since emissions from
production of electricity and district heating used by households are attributed to the
plants where the electricity and heat is produced.
Approximately 92% of greenhouse gas emissions from the residential sector in 2017
consisted of CO
2
. There are also small emissions of methane and even smaller
emissions of nitrous oxide.
In this section measures addressing all types of energy consumption in the household
sector are described, although some of the energy savings will result in emission
reductions in the energy production sector.
In 2017, consumption of energy by households, including electricity and district
heating, was responsible for around 30% of the total final energy consumption in
Denmark.
The major part of energy consumption in households is used for space heating - 83%
in 2017. District heating constituted 44% of household energy consumption for
heating in 2017. When district heating is produced at CHP plants or with renewable
energy, there are big CO
2
savings overall from the use of district heating instead of
individual heating based on, for example, oil-fired boilers.
Oil consumption for heating fell from 22% of household energy consumption in
2000 to 6% in 2017. In 2030, oil is expected to amount to less than 2% of final
energy consumption for heating, assuming that recent decades’ phase-out
of oil
consumption for heating continues.
Up to 2003, households changed to gas in particular, but from 2004 onwards the
change is more to wood pellets in particular. Up to 2030, wood pellet consumption is
expected to fall by 3.5% annually, whereas consumption of oil and gas is expected to
fall. The falling consumption of wood pellets and fossil fuels will be offset by an
increasing contribution from heat pumps.
Despite a rising number of electrical appliances, the associated electricity
consumption has remained constant over the past 15 years. This is because electrical
appliances have become more efficient, partly as a consequence of the EU Ecodesign
Directive and the Energy Labelling Directive.
The reduction of taxes in accordance with the Energy Agreement from June 2018 is
expected to trigger a rise in electricity consumption. Meanwhile, other energy
agreement initiatives will ensure that renewable energy output in Denmark matches
the country’s total electricity consumption by 2030.
Households' disposal of waste also contributes to emissions of methane from landfill
sites.
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The action being taken on households' waste and transport consumption is described
in the sections on waste and transport. This section therefore concentrates on the
possibilities of reducing the CO
2
emissions through savings in electricity and heating
in households and the possibilities for conversion to more environment-friendly
forms of heating. The possibilities for reduction in the public energy supply system
are described in the section on the energy sector.
In 2017, the final energy consumption in the household sector was 162.5 PJ for space
heating and hot water (climate-corrected) and 31.4 PJ of electricity for appliances,
etc. Consumption for heating has been quite constant for a number of years, in spite
of an increase in the number of households and in the area heated. The consumption
of electricity for appliances, etc. is still increasing. The increase in the consumption
of electricity has, however, not been nearly as great as the increase in the number of
appliances, since these have become steadily more energy efficient.
With a view to reducing energy consumption and environmental impacts from the
household sector, a wide range of initiatives have been launched, as described in
Table 4.19 in order to promote:
Electricity savings,
Savings in energy consumption in space heating, and
Fuel conversion (from the use of oil to district heating and the use of renewable
energy).
Several concrete measures and incentives already implemented are described below.
Energy taxes
All energy consumption for space heating as well as other energy consumption in
households and the public sector, as well as non-VAT-registered businesses is
subject to energy taxes. Throughout the 1990s CO
2
and energy taxes have steadily
increased, but since 2002 they have been almost stable. The CO
2
tax was increased in
2010 by more than 50 pct. The increases have mainly affected households, helping to
reduce their energy consumption.
As expanding infrastructure powered by renewable energy will be a key component
in Denmark’s successful green transition,
the 2018 Energy Agreement included
initiatives with a view to reducing taxes on electricity and restructure the rules on
surplus heat utilisation. Increased electrification is essential to harnessing the full
potential of green energy, and will enable the integration of fluctuating outputs of
wind and solar energy into our energy system. Green electricity can be converted
into heat and channelled through district heating systems or into large-scale heat
storage facilities
–
ensuring a flexible energy system and optimum utilisation of
green electricity.
Electrification of the energy system is thereby a cornerstone of the green transition.
Despite a steadily growing supply of green electricity, the taxes on electricity for
households in Denmark remain very high. High taxes on electricity constrain the use
of electricity by Danes, causing significant socioeconomic losses. To address this
problem, the energy agreement calls for reductions in the electrical heating tax and
electricity tax. The reduction of taxes is expected to trigger a rise in electricity
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consumption. Meanwhile, other energy agreement initiatives will ensure that
renewable energy output in Denmark matches the country’s total electricity
consumption by 2030. Electrical heat pumps are furthermore expected to replace
heating based on fossil fuels and biomass.
Agreed tax reductions:
- The electrical heating tax will be reduced from 0.307 DKK/kWh to 0.155
DKK/kWh, effective 2021.
- The electricity tax will be reduced from 0.914 DKK/kWh to 0.774 DKK/kWh
(phased in from 2019-2025).
- The electricity tax for certain liberal professions will be reduced from 0.914
DKK/kWh to 0.004 DKK/kWh in 2023.
Beginning in 2020, 100 million DKK will be earmarked annually for revising
regulations that govern surplus heat and promoting its utilisation. A working group
will be tasked with exploring electricity tariffs and related issues, including the
conditions for certain groups of electricity customers and whether tariffs can be
billed in a different and better way. The possibility of a dynamic electricity tax will
also be explored. The tax reductions will equate to lower electricity bills, thus
improving the productivity of businesses and the welfare of individual households.
CO
2
taxes
Some of the energy consumption in households is subject to CO
2
taxes. The CO
2
tax
is further described in section 4.3.3.
Minimum energy requirements for buildings
Denmark has a long experience with energy efficiency and energy savings in
buildings. From 1990 to 2017 energy consumption for heating has been reduced by
16.1% per m
2
. The goal is to reduce energy consumption in new buildings by 75% by
2020 relative to 2006.
All new buildings must, according to the Danish building code, be constructed as
nearly zero-energy buildings (NZEB).
The benefits of reducing energy consumption are tangible: less fossil fuel is
consumed and the environment has improved substantially. Strict and progressively
tightened building regulations since 1977 have ensured a stable demand for energy-
efficient building technologies.
Energy labelling of buildings when built, sold or rented
Energy labelling of buildings must be implemented after finishing the construction of
a building and on the sale or rental of the building - primarily heating consumption.
This applies in principle for all buildings, irrespective of size, apart from production
facilities, factories etc. The energy performance is expressed by a numeric indicator
of primary energy in kWh/m2 per year based on the primary energy factor.
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Regular energy labelling of large buildings and public buildings
The Energy Performing Certificate (EPC) consist of an energy label and an energy
plan. For publicly owned buildings over 250 m
2
the EPC must be prepared regularly
every ten years. Furthermore all large buildings over 600 m
2
which are frequently
visited by the public must display the EPC in a prominent place clearly visible to the
public.
Minimum energy requirements and energy labelling of appliances
The Danish Energy Agency has a national energy labelling scheme for façade
windows. Approximately 90 % of suppliers adhere to the scheme. Danish authorities
play an active role both in negotiation of compulsory EC requirements and in
securing awareness of and compliance with these, including through information on
the Agency’s website. But in general, the effect of EC product regulation is
accounted for elsewhere.
Subsidy scheme related to buildings
The subsidy scheme related to buildings allocates DKK 200 million for each year in
the period 2021-2024. The scheme will be implemented as a competitive subsidy
scheme aimed at achieving energy savings in buildings. Financial aid will be given to
owners of buildings who have renovated their buildings in accordance with a specific
list of energy savings belonging to the subsidy scheme.
Information initiative towards private households
The 2018 energy agreement allocates funding for information activities relating to
energy savings. The main target is to promote energy-efficient solutions and energy
renovation of buildings. The measures of the initiative will be information
campaigns, web-based information for private households etc., primarily via social
media and the website SparEnergi.dk. The initiative also includes utilisation of data
to promote energy efficiency.
Knowledge Centre for Energy Savings in Buildings
The Knowledge Centre for Energy Savings in Buildings is a service for craftsmen
and educational institutions concerning energy efficiency improvements. The centre
has worked with industry organisation within the area of mediating knowledge to its
members, and provides courses to support the general further education of craftsmen.
Furthermore, educational efforts are carried out by the labour market training centres.
Heat pumps as an energy service
In this initiative, which has been deployed since 2016, energy companies install,
finance, run and maintain heat pumps installed in smaller residential and commercial
buildings. Customers have no up-front investment cost but pay for the supplied heat
much as they would for district heating. This has increased the number of heat pump
installations, and heat pumps in the scheme tend to operate more efficiently, because
they are run by professionals rather than building owners.
The initiative is targeting mainly areas without supply of natural gas or district
heating.
The 2018 Energy Agreement focuses on the remaining oil-fired boilers and barriers
to promote the use of heat pumps. There are currently app. 80000 oil-fired boilers
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heating Danish homes. To reduce this number, annual funding of 20m DKK from
2021-2024 will be allocated for a support scheme to promote the replacement of oil-
fired boilers with heat pumps.
Furthermore it was decided that no new consumer obligations will be permitted as
from January 2019, while the consequences of repealing existing consumer
obligations will be analysed before the parties to the agreement make a decision on
such repeals.
“Better Houses”
“BetterHouses”
is a scheme (voluntary and market-driven system) from the Danish
Energy Agency focusing on energy renovation of buildings. The aim is to make it
easier for owners of buildings, mostly homeowners, to energy renovate by
creating a
“one stop shop” for energy renovation, where the owner only has to contact one
certified building contractor and to get an overall counselling on energy renovation
of the entire building.
Skilled workmen are educated under the BetterHouses
program to be advisors on energy renovation. The Danish Energy agency approves
the BetterHouses firms and professionals like architects, engineers, craftsmen,
energy consultants and building designers can take training courses to become
BetterHouses advisors. The training is carried out at academies of higher education.
A Better Houses advisor can manage the process and can follow the project all the
way from plan to completed renovation.
Strategy for energy renovation of buildings
In May 2014 a strategy for energy renovation of buildings was adopted. The strategy
contains initiatives which will promote the renovation of the Danish building stocks
and insures that energy efficiency measures are implemented on the buildings.
In accordance with the revised energy performance of buildings directive, Denmark
will establish a long-term renovation strategy in 2020 to support the renovation of the
national stock of residential and non-residential buildings, both public and private,
into a highly energy efficient and decarbonised building stock by 2050, facilitating
the cost-effective transformation of existing buildings into nearly zero-energy
buildings.
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T
ABLE
4.19 M
EASURES IN THE HOUSEHOLD
(
RESIDENTIAL
)
SECTOR
Name of mitigation action
Included in with
Sector(s)
measures GHG
affected
projection scenario
GHG(s)
affected
Objective and/or activity affected
Type of
instrument
Status of
implementation
Brief
description
Start year of
imple-
mentation
Implementing entity
or entities
Estimate of
mitigation impact
(not cumulative,
in kt CO2 eq)**
2020
IE (G1 and
G4)
2030
IE (G1 and
G4)
Source of estimates
HO-1: Energy labelling of small and
large buildings (incl. public sector and
business)
HO-2: Energy labelling of electric
appliances
Yes*
Energy
CO2, CH4,
N2O
Efficiency improvements of buildings
(Energy consumption)
Regulatory,
Information
Implemented
See text.
1997
Government: Danish
Energy Agency
Yes*
Energy
CO2
Efficiency improvement of appliances
(Energy consumption)
Information
Implemented
See text.
1992
Government: Danish
Energy Agency
IE (G1 and
G4)
IE (G1 and
G4)
HO-3: Substitution of individual oil-
based furnaces
Yes*
Energy
CO2
Switch to less carbon-intensive fuels
Economic,
(Energy supply), Efficiency improvements Information
of buildings (Energy consumption)
Implemented
See text.
2010
Government: Danish
Energy Agency
20
and IE (G1
and G4)
20
and IE (G1
and G4)
Estimates in 2017 - based on The 2013 Analysis of the Effects of Selected Measures
for the National Audit Office, Danish Energy Agency, December 2013 (
http://www.ens.dk/sites/ens.dk/files/energistyrelsen/Nyheder/kyoto-
samlenotat_9._december.pdf (an English translation is included in Annex B3 ))
HO-4: Better Houses
Yes*
Energy
CO2
Efficiency improvements of buildings
(Energy consumption)
Information
Implemented
See text.
2014
Government: Danish
Energy Agency
IE (G1 and
G4)
IE (G1 and
G4)
HO-5: Strategy for Energy renovation of
buildings
Yes*
Energy
CO2
Efficiency improvements of buildings
(Energy consumption)
Information,
Education,
Research
Economic
Implemented
See text.
2014
Government: Danish
Energy Agency
IE (G1 and
G4)
IE (G1 and
G4)
HO-6 (new): Heat pumps as an energy
service
Yes*
Energy
CO2
Efficiency improvements of buildings
(Energy consumption), Increase in
renewable energy (Energy supply)
Implemented
See text.
2016
Government: Danish
Energy Agency
IE (G1 and
G4)
IE (G1 and
G4)
G4: All EE mitigation actions (Energy
Efficiency) since 1990
Yes*
Combined (TD-b1, -2, Combined
-3, -4, -5, -6, -7; EN-1;
BU-1, -2, -6, -7, -9, -
10; TR-1a, -1b, -2, -3, -
4, -5, -6, -7, -10, -11, -
12; HO-1, -2, -3, -4, -5,
-6)
Combined
Combined
Combined
Combined
Combined
Combined
17583
13231
Estimated in September 2019 based on the energy projection from August 2019.
The methodology is described in Denmark's 7th National Comminication, Annex
B4.
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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4.3.5.2
CH
4
(methane)
Total emissions of methane from the energy sector account for about 1.1% of the
sector's greenhouse gas emissions, corresponding to about 0.5 million tonnes CO
2
equivalents. Many small sources contribute to this overall relatively minor source of
greenhouse gas emissions. The biggest single contribution comes from gas-fired
CHP plants, which emit unburnt natural gas. With a view to minimising the
emissions, a 1998 Statutory Order, in force from 2006 to 2013, has limited emissions
of nitrogen oxides, unburnt carbon hydrides, including methane, and carbon
monoxide etc.. However, the limit value for unburned hydro carbons was removed in
a revision of the Statutory Order entering into force on 7 January 2013.
As of 1 January 2011 a tax on methane emissions - equal in terms of CO
2
equivalents
to the CO
2
tax - from natural gas fired power plants was introduced (see chapter
4.3.3.3.).
4.3.5.3
N
2
O (nitrous oxide)
Nitrous oxide accounts for 0.8%, or 0.4 million tonnes CO
2
equivalents, of the
energy sector's total greenhouse gas emissions. Within energy, emissions of nitrous
oxide from transport have increased since the introduction of new cars with catalytic
converters in 1990. However, as the population of cars from before 1990 is almost
zero today, no further increase in specific nitrous oxide emissions from cars with
catalytic converters is expected.
4.3.6 Industrial Processes and Product Use (IPPU)
The greenhouse gas emissions from industrial processes and product use made up
4% of Denmark's total greenhouse gas emissions in 2017 (without LULUCF), of
which CO
2
was the primary emission. 75% of the
sector’s
emissions are CO
2
,
primarily from cement production, and 24% are emissions of the industrial gases
HFCs, PFCs, and SF
6
.
4.3.6.1
CO
2
- Cement production
Cement production results in large emissions of CO
2
. The production process itself is
very energy-intensive, and a large quantity of CO
2
is emitted in connection with the
production process.
Cement production in Denmark is concentrated in a single company. About half of
the emissions come from the company’s energy consumption and the other half from
chalk, which is one of the raw materials used in the process. A lot has been done
within the cement industry. For example, in the last 20 years the Danish cement
producer has significantly reduced its CO
2
emissions per tonne cement produced.
Since 2005, all CO
2
emissions from cement production in Denmark are subject to the
EU ETS.
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4.3.6.2
N
2
O - Production of nitric acid
The emission of nitrous oxide (N
2
O) from the production of nitric acid in connection
with the production of fertilizer in Denmark has only been included in Danish
emissions inventories in recent years, even though production from the single plant
in Denmark, with associated emissions, has taken place for many years, including
1990, Denmark’s basis year for emissions of nitrous oxide.
In summer 2004, however, the owner decided to stop production of fertilizer and so
production of nitric acid in Denmark. Emissions of nitrous oxide from production of
nitric acid in 2003 corresponded to 0.9 million tonnes CO
2
equivalents. In 2004
emissions were about one-half of this, and from 2005 they ceased entirely cf. market
conditions for production of fertilizer in Europe.
4.3.6.3
HFCs, PFCs and SF
6
- Consumption of these substances
Emissions of the so-called industrial gases HFCs, PFCs, and SF
6
are in accordance
with the emission inventories included in the industrial sector. This is also the case
for emissions from other sectors during use and scrapping of equipment containing
HFCs, PFCs and SF
6
. These gases are used for several purposes including as
refrigerants and blowing agents, etc. (HFCs) and insulator gas in high voltage
switchgear (SF
6
). Since there is no production of these gases in Denmark, all
emissions are related to the import of the substances. The developments in imports of
chemical mixtures containing HFCs in recent years are shown in Figure 4.10.
F
IGURE
4.10 I
MPORT OF
HFC
S TO
D
ENMARK
2000-2017
IN
T
ONNES
HFC
S
Source: Danish Environmental Protection Agency
Import of HFCs to Denmark
Source: Danish EPA, 2019
1200
1000
800
Tonnes
600
400
200
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
R-134a
R-152a
R-404A
R-407C
R-410A
All HFCs
The Danish regulation of emissions of the industrial greenhouse gases (HFCs, PFCs,
and SF
6
) is 2-phased, since there is a consumer tax on the use of the substances and
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also a statutory order on the phasing out use of the gases in new facilities and
products. Both measures are further described below.
According to model-based calculations, the combined effect of taxation and
regulation of F-gases compared to a business as usual scenario starting in 2000 is an
approximately 1.4 million tonnes of CO
2
equivalents reduction in annual F-gas
emissions in 2020. The accumulated emission savings over the period from 2000 to
2020 is estimated at approximately 11.2 million tonnes of CO
2
equivalents.
4.3.6.3.1 Taxes on HFCs, PFCs and SF
6
Taxes corresponding to their GWP have been imposed on each of the greenhouse
gases from March 2001 in combination with the Danish CO
2
tax of DKK 0.15 per kg
CO
2
as described in section 4.3.3. This means that HFC-134a is subject to a tax of
DKK 215/kg, as it has a GWP of 1,430. There is a ceiling of DKK 600/kg so
although SF
6
has a GWP of 23,900, the tax is only DKK 600/kg and not DKK
3,585/kg.
The tax is imposed on the substances on importation because none of them is
produced in Denmark. The tax is payable whether the substances are imported as
pure substances or as part of imported products. If the content in the products is not
known, the tax is based on a fixed tariff.
The tax is payable on a wide range of products, including:
Refrigerating and freezing plants
Air-conditioning plants
PUR foam for cooling plants, district heating pipes, insulated gates and doors,
panels for refrigeration and freezer rooms, extruded polystyrene for insulation
(XPS foam), jointing foam
Spray canisters
Insulation gas
The tax is also payable on services on existing and new installations/products.
4.3.6.3.2 Regulation of HFCs, PFCs and SF
6
On 15 July 2002, a statutory order on the regulation of certain industrial greenhouse
gases came into force.
This Statutory Order includes a general ban on the use of industrial greenhouse gases
in a great number of new facilities and products from 1 January 2006, including
household cooling and freezing appliances, PUR foam, etc. However, some products
and applications are exempted from the ban. This applies, for example, to servicing
existing plants, mobile cooling plants, including mobile air conditioning plants, the
use of HFCs in cooling and air conditioning plants with fillings between 0.150 and10
kg HFC, SF
6
in high voltage plants, etc. The Statutory order was revised in May
2017 in order to reflect the development of new low GWP, fluorinated refrigerants
such as HFOs. The only change is that the revised order does not cover HFCs with a
GWP below 5. All other provisions remains unchanged. The Statutory Order was
revised again in November 2018 allowing the use of HFCs in certain hermetically
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sealed heat pumps in amounts up to 50 kg. The purpose of the revision was to
remove barriers for the use of medium size heat pumps in the energy system.
To ensure the best possible implementation of the phase-out dates for the
refrigeration sector, a total of DKK 12 million was reserved for the period 2005-2007
for development of alternatives and for subsidies for implementation of the
alternatives developed in the previous years. A knowledge centre for HFC-free
cooling has been established. This centre disseminates knowledge and offers
technical assistance.
As from 2015 to 2017 DKK 1,5 million is reserved for promoting cooling equipment
relying on natural refrigerants and retrofitting existing equipment to use refrigerants
with lower GWP.
To ensure regeneration and environmentally friendly destruction of newly developed
flammable fluorinated refrigerants DKK 2.5 million is granted from 2017 to 2019 to
upgrade the existing return system (see Chapter 4.3.4).
In 2019 an information campaign costing 300.000 DKK aiming at preventing illegal
imports of HFC is expected to be launched.
An overview of the above measures regarding industrial processes is given in table
4.20
17
.
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T
ABLE
4.20 M
EASURES IN THE
I
NDUSTRIAL
P
ROCESSES SECTOR
Name of mitigation action
Included in with
Sector(s)
measures GHG
affected
projection scenario
GHG(s)
affected
Objective and/or activity affected
Type of
instrument
Status of
implementation
Brief
description
Start year of
imple-
mentation
Implementing entity
or entities
Estimate of
mitigation impact
(not cumulative,
in kt CO2 eq)**
2020
IE (G1 and
G6)
2030
IE (G1 and
G6)
Source of estimates
IP-1: Regulation of use of HFCs, PFCs
and SF6 (phasing out most of the uses)
Yes*
Industry/Industrial
processes
HFCs, PFCs,
SF6
Reduction of emissions of fluorinated
gases (Industrial processes)
Regulatory
Implemented
See text.
2006
Government: Danish
Environmental
Protection Agency
G6(new): F-gas taxes and regulation
Yes*
Combined (TD-8 and Combined
IP-1)
Combined
Combined
Combined
Combined
Combined
Combined
800
800
Estimates in 2017 - based on The 2005 Effort Analysis
(http://www2.mst.dk/udgiv/publikationer/2005/87-7614-587-5/pdf/87-7614-588-
3.pdf and http://www2.mst.dk/Udgiv/publikationer/2005/87-7614-589-1/pdf/87-
7614-590-5.pdf (summary in English included in Annex B2 )).
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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4.3.7 Agriculture
The primary occupational sectors agriculture, forestry and fisheries are generally
considered as one single economic sector in Denmark, although the importance of the
individual sectors differs greatly with respect to Denmark's emissions and uptake of
greenhouse gases. Agricultural farms have emissions of primarily methane and nitrous
oxide as described in this section. Liming, urea application and other carbon-containing
fertilizers are minor sources of CO
2
emissions. The CO
2
emissions by sources and
removals by sinks in relation to Denmark's agricultural soils and forests are included
under the LULUCF sector described in Section 4.3.7. CO
2
emissions from energy use in
agriculture are included under energy (section 4.3.4).
In 2016, emissions of greenhouse gases from agriculture (i.e. excluding CO
2
from
cropland and grassland under the LULUCF sector) were responsible for 20.9% of
Denmark's total greenhouse gas emissions (total excluding LULUCF, but with indirect
CO
2
). Total greenhouse gas emissions from agriculture consisted, in 2016, of 52.8%
from methane, 45.1% from nitrous oxide and 2.1% CO
2
emissions primarily from
liming. Agriculture is the overall most important sector regarding emissions of N
2
O and
CH
4
. In the same year, the contribution of N
2
O and CH
4
from agriculture to the national
total emission of these gases was 89.0% and 79.2%, respectively. N
2
O emissions from
agriculture decreased by 26.5% and the CH
4
emissions from agriculture decreased by
0.4% from 1990 to 2016 (Nielsen
et al., (2018a)).
Table 4.21 shows measures for greenhouse gas emission reductions within agriculture.
Policies and measures relevant for the agricultural sector which have affected or will
affect the sector's greenhouse gas emissions are:
Ban on burning of straw on fields
Action Plans for the Aquatic Environment I and II and Action Plan for
Sustainable Agriculture
Action Plan for the Aquatic Environment III
Ammonia Action Plan
Action Plan for Joint Biogas Plants and subsequent follow-up programmes,
including the New Energy Policy Agreement
Environmental Approval Act for Livestock Holdings
Agreement on Green Growth 2009
Agreement on Green Growth 2.0
Subsidy for conversion of arable land on organic soils to nature
Political Agreement on a Food and Agricultural Package and the political
Agreement on Targeted Regulation and subsequent agreements [such as the
national budget for 2020, which includes allocation of additional funding for
afforestation and environment- and climate-technologies]
Agreement on Nature (the Nature Package)
Advisory task force on barriers for reducing the hydraulic retention time of
manure before being delivered to biogas plants (PSO Agreement of 17 November
2016)
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National Green Climate Fund
–
Initiatives in agriculture 2017
GHG accounting and awareness building at farm-level. Climate-friendly feed
production for pigs. Promotion of green bio-refining. (Agreement of 2
nd
May
2019)
Multifunctional Land Reparcelling Fund (Agreement of 19
th
September 2019).
Stronger research efforts in agriculture affecting all greenhouse gases
New solutions and new technology are needed for the production of even more climate-
friendly food in the future. At the same time, there is a need to know more about how
greenhouse gas emission reductions can be obtained in the best way with the technology
we already have available today.
Funded by the National Green Climate Fund other research work in agriculture was
initiated in 2019 as mentioned in chapter 4.3.4:
Climate accounts and information on individual farm-level
Climate-friendly feed production
Promotion of green bio refining
Promotion of green building
Further information is included in chapter 4.3.4.
In 2019, DKK 90 million was allocated for climate change mitigation research in
agriculture in the period 2019-2021 and a research programme has been launched
consisting of 10 projects. An additional 30 million DKK has been allocated to this
initiative in 2022.
Furthermore, 40 million DKK has been allocated to climate research in agriculture in
2020 as part of the Danish Green Development and Demonstration Programme
(GUDP).
4.3.7.1
CH
4
(methane)
Methane emissions mainly steam from the agricultural sector, contributing, in 2016,
with 79% of total Danish CH
4
emissions, corresponding to 5.6 million tonnes CO
2
equivalents (Nielsen
et al., (2018a)).
Agricultural systems have two main sources of
methane. Methane is formed through enteric fermentation of feed during digestion in
livestock (farm animals) and from conversion of carbon in the manure.
Danish agriculture's biggest contribution to the methane emissions comes from dairy
cows.
In the digestion process, methane is a by-product of the fermentation of feed in the
rumen, primarily from grass and roughage fodder such as grass, grass silage and maize
silage. In addition, methane is formed by microorganisms during conversion of carbon
in the manure under anaerobic conditions, increasing with increasing temperatures and
pH. These conditions especially occur in manure stores and housing systems with slurry
(liquid manure) or deep litter. Methane from manure management in Denmark is
primarily linked to pig production.
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The emission of methane from agriculture has remained more or less stable in the period
from 2006 to 2017. At present, the number of dairy cows in Denmark is projected to
increase slightly in combination with an increased milk production per dairy cow, which
again could cause the feed intake and thus the methane emissions from enteric rumen
fermentation to rise. At the same time, the CH
4
emissions from manure are expected to
slightly decrease due to an increasing share of the manure expected to be treated in
biogas plants or acidified in the livestock housing system (the stable). The effect on
methane emissions from acidification needs further documentation.
4.3.7.1.1 Biogas
Biogas from digestion of manure and organic wastes carries a number of potential
advantages when used to substitute fossil energy: reductions in emissions of greenhouse
gases, better utilization of manure as fertiliser, recycling and use of organic wastes for
energy and fertiliser purposes etc. However, there are also environmental challenges for
example increased ammonia emission and odour from the biogas plants.
As part of the Danish Rural Development Programme 2007-2013, financial support has
been provided to investments in biogas plants in 2010 and in 2012. In 2012 support was
awarded to both new and existing biogas plants to the amount of DKK 262 million.
In order to stimulate expansion of the biogas sector the subsidy on the sales price of
electricity production based on biogas was adjusted by the Energy Policy Agreement of
22 March 2012. The Agreement resulted in an amendment to the Promotion of
Renewable Energy Act of 27 December 2008.
The Energy Policy Agreement continued funding biogas for combined heat and power
(CHP) and introduced subsidy equality so that biogas sold to the natural gas grid would
receive the same subsidy as biogas used at CHP plants. In addition the agreement also
introduced a new subsidy when biogas is used in industrial processes, as a fuel for
transport or for the production of heat.
As part of the PSO Agreement of 17 November 2016, it was decided to establish and
fund an advisory task force with the aim of investigating and removing barriers for
reducing the hydraulic retention time of manure before being delivered to biogas plants,
and thus reduce methane emissions while increasing biogas production at the same time.
The taskforce commenced their work in late 2018.
Consequently the latest projection from the Danish Energy Agency expects an increase
in biogas production from 3.9 PJ in 2007 to 22,0 PJ in 2020 and 28 PJ in 2030 mainly
based on agricultural sources.
The biogas production is expected to result in a reduction of the annual emissions of
methane and CO
2
by approximately 0.9 million tonnes of CO
2
equivalents by 2020
including the reduced CO
2
emissions from substitution of fossil fuels, primarily natural
gas. Reductions in the emission of nitrous oxide is not included in this figure as they are
not well documented in the case of storage of degassed slurry. The expected effect was
re-estimated in September 2016 by DCE
16
.
16
”Biogasproduktions konsekvenser for drivhusgasudledning i landbruget” Rapport nr. 197 DCE, 2016.
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As mentioned in chapter 4.3.4, the 1
st
allocation of the budget under the National Green
Climate Fund in June 2017 included an earmarking of 9,0 million DKK for developing
solutions in existing biogas plants and associated suppliers of feedstock with a view to
reduce the retention time of manure in the housing system prior to the treatment in the
biogas plant. This is expected to increase the production of biogas per unit input of
manure while at the same time reducing emissions of methane from the housing system.
The expected effect of this initiative is not included in the GHG emission projection
from March 2017.
As part of the 2018 energy agreement, it was decided to no longer permit new
applicants to the existing subsidy schemes for the use of biogas from January 1
st
2020.
In 2019 a targeted effort to reduce methane emissions from Danish biogas plants was
initiated. The total reduction effect of this initiative over the period 2021-2030 is
estimated at approximately 1.1 million tonnes CO2 equivalents (accumulated annual
reductions).
4.3.7.2
N
2
O (nitrous oxide)
Agriculture is the largest source of nitrous oxide emissions in Denmark. Of the total
Danish N
2
O emissions of 5.3 million tonnes CO
2
equivalents in 2016, 89% or 4.8
million tonnes of CO
2
equivalents came from agriculture (Nielsen
et al., (2018a)).
The
process of emission of N
2
O occurs in some types of manure storage facilities and during
conversion of mineral and organic bound nitrogen (e.g. in manure and applied
wastewater sludge) in the soil. Some of the leached nitrogen is also converted into
nitrous oxide. Nitrogen entering the soil with applied fertiliser and manure, and through
plant residue, is the main sources of nitrous gas emissions.
Likewise, ammonia (NH
3
) volatilisation contributes to the greenhouse effect because
some of the ammonia nitrate ends up as nitrous oxide in the atmosphere. Ammonia
volatilisation into the atmosphere stems almost exclusively from agriculture, through
conversion processes from manure, fertiliser, sludge, crop residue and treatment of
straw with ammonia. In particular, the emissions occur during handling of manure in
animal housing, during storage and transport of manure, and from grazing animals
17
(Nielsen
et al., (2018a)).
The main reason for the drop in the overall emissions of N
2
O from the agricultural
sector of 25% from 1990 to 2017 is enforced legislation (see below) to reduce nitrogen
leaching by improving the utilisation of nitrogen binding in manure, as well as measures
to reduce the application of mineral fertilizers to soils. The legislation has resulted in a
considerable reduction in the use of mineral fertilisers. It has also helped, that the
market driven effort to improve the feeding efficiency (and thereby also the farmers
economy) have reduced the nitrogen excreted per unit livestock produced. The basis for
the N
2
O is then reduced (Nielsen
et al., (2017a)).
Implementation of the Action Plans
17
Mikkelsen et al., 2005: Mikkelsen, M.H., Gyldenkærne, S., Poulsen, H.D., Olesen, J.E. & Sommer, S.G. (2005). Opgørelse og
beregningsmetode for landbrugets emissioner af ammoniak og drivhusgasser 1985-2002. Arbejdsrapport fra DMU Nr. 204 (in
Danish).
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for the Aquatic Environment II and III contribute the most to this reduction
18,19
. Further
projected decrease in N
2
O emissions towards 2020 is mainly attributed to areas being
taken out of agricultural production for urban development and infrastructure etc., and
to anticipated increased shares of organic agriculture (DCE, December 2014).
In 2016, the Political Agreement on a Food and Agricultural Package from 2015)
allowed Danish farmers to use more nitrogen in the fields through a lifting of the
reduced fertilizer standards for nitrogen. The potential slight increase in future N
2
O
emissions resulting from this policy change is sought mitigated by correspondingly
implementing measures for ensuring optimization of N-binding and carbon
sequestration in agricultural soils (e.g. catch crops).
4.3.7.2.1 Action Plans for the Aquatic Environment I and II and Action Plan for
Sustainable Agriculture
One of the main purposes of the Action Plans for the Aquatic Environment and the
Action Plan for Sustainable Agriculture was to reduce agriculture's nutrient losses to the
aquatic environment.
The action plans was implemented as regulation of farmers' behaviour. The Action Plan
for the Aquatic Environment I was initiated in 1987, and the Action Plan for Sustainable
Agriculture in 1991. In particular, these action plans included requirements concerning
closed periods for applying slurry, ensuring a better utilisation of manure as well as
minimum slurry storage capacity, mandatory incorporation of manure into the soil
shortly after application, and winter green fields. The Action Plan for the Aquatic
Environment II from 1998 contained a number of additional measures, including re-
establishment of wetlands, afforestation, agreements on environment friendly
agricultural measures, establishment of organic farming on an additional 170,000 ha,
improved utilization of fodder, reduced animal density, use of catch crops, reduced
fertilisation norms, and increased efficiency in use of nitrogen in manure. The aim of
the political plans, which has now been reached, was to reduce nitrogen leaching by
100,000 tonnes N/year up to the year 2003
20
. The benchmark for the evaluation of the
agricultural nitrogen leaching, as part of the final evaluation of the Action Plan for the
Aquatic Environment II in December 2003, was 311,000 tonnes N per year. The
evaluation showed that measures already implemented in addition to the measures
agreed upon and financed by Action Plan II would result in a reduction of the total
nitrogen leaching from agriculture (root zone and stable and storage facilities) of around
149,000 tonnes N per year. This corresponds to a reduction of around 48% of 311,000
tonnes N. After taking into account the calculation uncertainties, the nitrogen discharge
reduction goal of 49% was achieved.
Specifically, these action plans have reduced the emissions of nitrous oxide. There have
presumably also been small effects on methane emissions from manure stores,
particularly as a consequence of increased use of anaerobic fermentation of manure in
biogas plants and the reduced use of deep litter. The increased use of catch crops and
18
Olesen et al., 2004: Olesen, J.E., Petersen, S.O., Gyldenkærne, S., Mikkelsen, M.H., Jacobsen, B.H., Vesterdal, L., Jørgensen,
A.M.K., Christensen, B.T., Abildtrup, J., Heidmann, T. & Rubæk, G. (2004). Jordbrug og klimaændringer - samspil til
vandmiljøplaner. DJF rapport Markbrug nr. 109. (in Danish).
19
Olesen, 2005: Olesen, J.E. (2005). Muligheder for reduktion af drivhusgasemissioner i jordbruget. I: Olesen, J.E. (red).
Drivhusgasser fra jordbruget - reduktionsmuligheder. DJF rapport Markbrug nr. 113, s. 12-32. (in Danish).
20
Grant et al., 2000: Grant, R., Blicher-Mathiesen, G., Jørgensen, V., Kyllingsbæk, A., Poulsen, H.D., Børsting, C., Jørgensen, J.O.,
Schou, J.S., Kristensen, E.S., Waagepetersen, J. & Mikkelsen, H.E. (2000). Vandmiljøplan II - midtvejsevaluering. Miljø- og
Energiministeriet, Danmarks Miljøundersøgelser, Silkeborg, Denmark. 65 pp (in Danish).
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larger overall areas with organic farming would also be expected to an increased storage
of carbon in the soil.
Most of the changes in nitrous oxide emissions from agriculture through the period
since 1990 can be attributed to these action plans. However, it has been calculated that
even without the action plans there would have been a reduction in emissions, although
to a much lesser extent, due to an overall optimization and improvement of farming
techniques and management practices. The effect of these action plans on emissions of
nitrous oxide has been calculated at about 2.2 million tonnes CO
2
equivalents/year
19
.
There are no estimates of the effect of the Action Plans I and II for the Aquatic
Environment and the Action Plan for Sustainable Agriculture on carbon storage in the
soil.
4.3.7.2.2 The Ammonia efforts
Ammonia emitted from agriculture will stimulate emissions of nitrous oxide when it is
deposited in other ecosystems. Reducing ammonia emissions will therefore also result
in a reduction of nitrous oxide emissions from that step in the production system.
However, as the reduced ammonia emissions increase the nitrogen content in the
manure, more nitrogen will, depending on the regulation, be applied to agricultural
soils, increasing ammonia as well as nitrous oxide emissions during application.
Together with the Action Plans for the Aquatic Environment I, II and III, the Ammonia
Action Plan, which was adopted in 2001 carried a projected reduction of ammonia
emissions by an estimated 15-20,000 tonnes of nitrogen annually. Hence, ammonia
evaporation from agriculture should be reduced from 90,000 tonnes of nitrogen in the
mid-1990s to approximately 60,000 tonnes of nitrogen in 2004.
The measures covered by the Ammonia Action Plan are:
1) Optimisation of manure handling in stables for cattle, pigs, poultry and fur animals.
2) Rules on covering storage facilities for solid manure and slurry tanks.
3) Ban on overall surface spreading and reduction of the time from field application of
manure to incorporation in soil.
4) Ban on ammonia treatment of straw.
Following from an ex-ante analysis in 2001, these measures were estimated to have
lowered the level of annual emissions of nitrous oxide corresponding to 34,000 tonnes
of CO
2
equivalents from 2010. A shorter period of exposure for spread manure was
estimated to have the greatest effect with an estimated reduction of 13,000 tonnes of
CO
2
equivalents in annual emissions
22
.
According to the latest emission inventory
21
a 22 per cent decrease in emissions of
ammonia from agriculture from 2001 to 2016 can be seen
–
corresponding to a
reduction of 75,000 tonnes CO
2
equivalents in annual N
2
O emissions. From 1990 there
was a 43 percent decrease in 2016 - corresponding to a reduction of 200,000 tonnes CO
2
equivalents in annual N
2
O emissions. The level of approximately 60,000 tonnes of
nitrogen in emissions of ammonia from agriculture projected to be reached in 2004 was
reached in 2011.
21
http://cdr.eionet.europa.eu/dk/eu/nec_revised/inventories/envwovdkw/
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In 2019, further measures to reduce emissions of ammonia from agriculture was
implemented. However, the effect on greenhouse gas emissions is estimated to be
neutral.
4.3.7.2.3 Action Plan for the Aquatic Environment III and the agreements of Green
Growth
With the political agreement on the Action Plan for the Aquatic Environment III (APAE
III) of 2 April 2004, a number of measures were implemented to follow up on the
results attained via the previous plans. This third action plan contains targets with
respect to nitrogen, phosphorus, sensitive natural areas, and slurry odour. It is a 10-year
agreement, and was, in 2008 and 2011, evaluated with respect to the Water Framework
Directive and the Habitats Directive. Special emphasis in the APAE III was on the use
of catch crops, stricter requirements for use of manure as well as afforestation and agro-
environmental measures. In addition, the agreement includes research initiatives aimed
at slurry odours and reduction of emissions of nutrients, e.g. research into technology to
manage slurry, ammonia etc. The effect of the action plan for the period 2008-2012 was
projected at 0.2 million tonnes CO
2
equivalents/year
22
.
In 2008 the APAE III was evaluated on results, adequacy of tools and economic aspects
to ensure that activities and expected results were achieved. The main conclusions for a
number of measures were that implementation and effects have not been as anticipated.
At the midterm evaluation of the APAE III, covering the years 2004-2007, no
reductions in the production of animal manure were recorded, nor any decrease in the
use of mineral fertilizers. Furthermore, no significant reductions in nitrogen leaching
were proved for the investigated period (Waage Petersen et al., 2008).Thus, no change
in the key parameters that provided reduction in the emissions of greenhouse gasses in
the earlier action plans for the aquatic environment have happened so far, and it may
therefore be difficult to reach the initial target.
In 2009, the Danish government launched the Green Growth Agreement (GGA)
–
as a
plan for ensuring better conditions for nature and the environment while allowing
agriculture to develop as a business. The GGA is a long-term plan for Danish nature,
environment and agriculture with the purpose of ensuring that a high level of
environmental, nature and climate protection goes hand in hand with modern and
competitive agriculture and food industries.
The GGA was augmented in 2010 by the Green Growth Agreement 2.0, containing a
series of initiatives to improve agriculture and food sector growth conditions and thus
help to secure employment on farms, in the food industry and downstream industries.
Furthermore, the GGA 2.0 supported the ongoing development of bioenergy with the
aim of contributing to support Denmark's target of 30 per cent renewable energy by
2020 and fulfilment of Denmark's climate goals.
The GGA contains targets with respect to discharges of nitrogen and phosphorus to the
aquatic environment, protection of nature and biodiversity, development of renewable
energy in the agricultural sector including biogas plant, reduction of harmful pesticides,
22
Olesen et al., 2001: Olesen, J.E., Andersen, J.M., Jacobsen, B.H., Hvelplund, T., Jørgensen, U., Schou, J.S., Graversen, J.,
Dalgaard, T. & Fenhann, J. (2001). Kvantificering af tre tiltag til reduktion af landbrugets udledning af drivhusgasser. DJF-
rapport Markbrug 48. (http://web.agrsci.dk/djfpublikation/djfpdf/djfm48.pdf , in Danish).
68
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development of the organic sector and strengthened initiatives within research and
development within the agricultural and food sectors.
The GGA also dealt with the problems previously encountered in achieving the
expected goals through the APAE III. The measures in the GGA likewise pursued the
achievements of the objectives of the Nitrates Directive on reducing discharges of
nitrogen and phosphorus, as the target in APAE III were included in the GGA target.
Different from the former APAE’s
were also the switch from a target on N leaching
from the root zone to a target on N discharge to the aquatic environment. As the GGA
worked to implement the EU Water Framework Directive, some measures were targeted
sub-catchment while some measures were general rules.
The initiatives incorporated in the GGA were projected to reduce the agricultural
sector’s overall emissions
of greenhouse gases by about 800,000 tonnes of CO
2
equivalents annually. Of this, about 400,000 tonnes reduction were expected to be
derived from a green, market-based re-structuring of nitrogen regulation.
The latest estimate of achieved effects of the GGA, as well as of structural
developments in agriculture etc., used in the October 2014 WEM greenhouse gas
emission reduction projection amounts to 0.5 Mt of CO
2
eq. annually by 2021 (DCE,
December 2014).
A joint evaluation of the GGA’s and the
APAE’s
March 2014 showed
an overall reduction effect of approx. 0.19 Mt CO
2
eq. annually for the period of 2007-
2011, and approx. 0.337 Mt CO
2
eq. annually for 2012-2015. The reduction of specific
emissions for 2007-2011 equals annually an estimated 4 Kt CO
2
eq. from CH
4
, 67 Kt
CO
2
eq. from N
2
O, 107 Kt CO
2
eq. from carbon storage, and 11 Kt CO
2
eq. stemming
from reductions in fuel use. Likewise, for the period of 2012-2015 the reductions equals
an estimated 179 Kt CO
2
eq. from N
2
O, 129 Kt CO
2
eq. from carbon storage, and 41 Kt
CO
2
eq. stemming from reductions in fuel use, while emissions stemming from CH
4
rose with 12 Kt CO
2
eq.
23
(DCA 2014).
4.3.7.2.4 Environmental Approval Act for Livestock Holdings
The Environmental Approval Act for Livestock Holdings was implemented on 1
January 2007, providing national minimum requirements for environmental protection
(odour, ammonia, nitrate, phosphorous, landscape, etc.) when livestock holdings are
established, expanded or changed. The purpose of the Act was also to ensure the use of
best available techniques (BAT).
The measures covered by the Environmental Approval Act for Livestock Holdings in
2007 were:
300 m buffer zones around ammonia-sensitive areas where no extension of
livestock farms can take place if such an extension would lead to increased
ammonia deposition in natural areas vulnerable to ammonia.
Demand for a general reduction of ammonia emissions relative to a production
facility with the lowest ammonia emission norm: 2007: 15%, 2008: 20%, 2009:
25%.
23
DCA (2014): Shelde, K. & J. E. Olesen. Klimaeffekt af kvælstofvirkemidler i dansk landbrug i perioden 2007-2015. Report on
evaluation of GHG effects ordered from the Danish Ministry of Agriculture and Fishery (in Danish).
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Demands for injection of animal slurry on black soil and grass within buffer
zones (1 km from vulnerable natural areas and, from 2011, in the whole
country).
Demand for fixed cover on most new containers for solid manure and slurry
tanks (if they are within a distance of 300 meter to neighbours or vulnerable
natural areas).
Environmental standards and limits for nitrate-leaching to surface waters and
groundwater depending on vulnerability, e.g. denitrification capacity and
standards for phosphorous surplus depending on soil type and drainage.
Environmental standards and limits for maximum deposition of ammonia on
vulnerable nature and maximum odour impact on neighbours and cities.
The effect of these measures on greenhouse gas emissions has not yet been quantified.
The Environmental Approval Act for Livestock Holdings was changed in 2011, and the
environmental standards for ammonia were heightened trough several measures. The
general reduction goal was increased to a reduction of 30%, the specific ammonia
reduction requirements were introduced with a maximum for total deposition to certain
ammonia sensitive areas. This replaced the 300 meter buffer zones. In general this led to
an overall tightening of the ammonia reduction with local exceptions.
4.3.7.2.5 Political Agreement on a Food and Agricultural Package and the political
Agreement on Targeted Regulation and subsequent agreements
In 2015 the Green Growth Agreement was replaced by the Political Agreement on a
Food and Agricultural Package (FAP) which ensures better production conditions for
farming, while at the same time handling a number of the key environmental challenges.
The agreement includes a diverse package of measures designed to make a shift in the
way environmental regulation in the agricultural sector is carried out, from a general
regulation to a targeted approach.
The fertilization standards for the agricultural sector
was lifted to the level of economic optimum and a new targeted regulation based on
specific environmental goals for the aquatic environment and ground water resources is
introduced from 2019.
The re-establishment of wetlands, rewetting of organic soils and afforestation
(conversion of arable land) remain important measures to reduce the loss of nitrogen to
the aquatic environment. As a part of the Political Agreement on a Food and
Agricultural Package a comprehensive support scheme for catch crops was also
introduced. The agreement also included changes to the regulation on the use of catch
crops in Danish agriculture: a requirement of catch-crops as compensation for livestock-
related nitrogen leaching and additional catch-crops as part of a targeted regulation. The
aforementioned regulatory schemes on catch crops were implemented in addition to the
already existing two other schemes, covering mandatory catch crops and catch crops as
part of the EU requirement of environmental focus area.
Demands on growing catch crops (primarily grass) in the autumn to reduce the nitrate
leaching do also sequester CO
2
. Based on plans for future agricultural regulations the
area is expected to increase significantly towards 2021. In 2018 an additional agreement
on Targeted Regulation was agreed upon. In addition to catch crops measures such as
energy crops, reduced fertilizer/manure application, fallow land etc. was introduced as a
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part of the scheme. Money was also allocated to develop technologies from biorefining
from grass with the aim of commercializing green bio refining and thus increase the
demand for grass and other crops with lower climate- and environmental footprint.
Most recently, a political agreement (November 2019) has been reached on frontloading
the positive climate and nutrient effects of targeted regulation from 2021 to 2020. From
2019 to 2020 there will be a substantial increase in agricultural land with catch crops
(potentially 550,000 hectares out of a appx 2,6 mill. hectares of arable farmland). As a
part of targeted regulation, the farmer can choose a number of alternative measures to
catch crops to mitigate nutrient leaching. From 2020, all alternative measures have a
positive climate effects.
As a part of the Political Agreement on a Food and Agricultural Package money was
also allocated for afforestation, environmental and climate technologies and conversion
of arable land on organic soils to nature under the Danish Rural Development
Programme funded by the European Agricultural Fund for Rural Development
(EAFRD). As a part of the agreement on the national budget of 2020, an additional 35
mio. DKK have been allocated for afforestation purposes and 170 mio. DKK for
investments at farm-level, including environmental and climate technologies.
4.3.7.2.6 Subsidy for conversion of arable land on organic soils to nature
Cultivated organic soils emits large amounts of CO
2
. In Demark approximately 66,000
hectares of organic soils (>12% organic carbon) are under agricultural practice.
In 2014 the Danish Government adopted a subsidy scheme for conversion of arable land
on organic soils to natural habitats under the framework of the common agricultural
policy (CAP). This scheme is now a part of the Agreement on the Food and Agricultural
Packet.
The objective of the scheme is to reduce agricultural emissions of greenhouse gases
from organic soils through less intensive agricultural operations. The initiative also
offers opportunities for synergies in relation to reduced discharges of nitrogen into
watercourses, lakes and fiords as well as for increased biodiversity. From 2015 to 2017
the plan has been to provide economic subsides to convert approximately 2,500 hectares
of organic lowland areas into rewetted natural habitats and reduce emissions of
greenhouse gases. The CO
2
effect has been estimated at a reduction of at least 33.000
tonnes of CO
2
-eq. annually in the period 2014-2017. The effect is likely to be greater
due to prioritization of projects with the lowest emission reduction costs (DKK per kg
CO
2
), depending on soil types
24
. The areas under the subsidy scheme are registered with
a ban on cultivation, fertilisation and pesticide application. As a part of the Agreement
on the Food and Agricultural Packet the scheme has been extended to 2020. The scheme
is co-financed by the Danish rural development by the European Agricultural Fund for
Rural Development (EAFRD).
In September 2019 an Agreement was made on establishing a Multifunctional Land Re-
parcelling Fund 2019-2021. The objective is to facilitate re-parcelling of land and
thereby obtain synergies between agricultural production and biodiversity, climate,
environment, recreation and rural development.
24
DCE (2014): Jensen, P.N. (red). Fastsættelse af baseline 2021. Effektvurdering af planlagte virkemidler og ændrede betingelser
for landbrugsproduktion i forhold til kvælstofudvaskning fra rodzonen for perioden 2013-2021. DCE technical report no. 43.
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4.3.7.2.7 Political Agreement on Nature
A Political Agreement on Nature (the Nature Package) was installed in May 2016 with
the main aim of supporting an increased protection of biodiversity. The agreement states
initiatives within the following areas: Biodiversity in forests, continued initiatives for
nature (initiatives derived from the former plan Danish Nature Policy), nature and
biodiversity, urban nature and outdoors recreation, open land management and the
farmer’s role as resource manager
of nature areas, modern nature conservation, and
simplification of legislation.
As a result of the nature package 10.200 acres of forest is designated as untouched
forest and another 3.600 acres is designated as forest in which management primarily is
based on biodiversity considerations in state-owned areas. Also government grant
scheme has been established to increase areas of untouched forest in private owned
forests.
The climate effect of this Agreement has not been established.
4.3.7.2.8 Bio-refining
Bio-refining can produce a range of products such as inputs to biogas production,
protein and fodder and other higher value products for use in e.g. the chemical and
pharmacological industry. As mentioned in chapter 4.3.4, the 1
st
allocation of the budget
under the National Green Climate Fund in June 2017 included an earmarking of 8
million DKK as support in 2017 for pilot-scale bio-refinery projects based on non-food
biomass. Commercialization of the bio-refining sector can facilitate demand for crops
such as grasses with higher associated environmental and climate benefits than for
conventional crops like corn or cereals. In addition, bio-refining is considered to be
essential in realizing the bio-economy potential within Danish agriculture and other
connected sectors.
In 2019, additional funds have been allocated through the National Green Climate Fund
for promotion of green bio refining (see chapter 4.3.4).
4.3.7.2.9 Promotion of precision agriculture.
Preparation of pilot project on precision farming to investigate to what extend high-tech
solutions such as sensors and GPS data can optimize cultivation with regard to nitrogen
leacing was initiated in 2019. There are potentially positive climate mitigation effects
from precision farming. However, more knowledge beyond the existing initiative is
needed in order to quantify the effect. The potential outcome will be integrated in future
work on climate.
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T
ABLE
4.21 M
EASURES IN AGRICULTURE
,
FORESTRY AND FISHERIES
(S
EE ALSO
T
ABLE
4.25 (LULUCF))
Name of mitigation action
Included in with
Sector(s)
measures GHG
affected
projection scenario
GHG(s)
affected
Objective and/or activity affected
Type of
instrument
Status of
implementation
Brief
description
Start year of
imple-
mentation
Implementing entity
or entities
Estimate of
mitigation impact
(not cumulative,
in kt CO2 eq)**
2020
1900
Source of estimates
AG-1(expired): Action Plan for the
Aquatic Environment I+II and Action
Plan for Sustainable Agriculture
Yes*
Agriculture
N2O
Reduction of fertilizer/manure use on
cropland (Agriculture)
Regulatory
AG-2(expired): Action Plan for the
Aquatic Environment III
Yes*
Agriculture
N2O
Reduction of fertilizer/manure use on
cropland (Agriculture)
Economic,
Regulatory
AG-4a/4b/4c/4d/4e: Reduced emissions
of ammonia
Yes*
Agriculture
N2O
Reduction of fertilizer/manure use on
Regulatory
cropland (Agriculture), Improved animal
waste management systems (Agriculture)
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
greenhouse gas
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
greenhouse gas
Implemented
See text.
1987
Government: State,
Local: Municipalities
2030
1900
Estimates in 2017 - based on The 2005 Effort Analysis
(http://www2.mst.dk/udgiv/publikationer/2005/87-7614-587-5/pdf/87-7614-588-
3.pdf and http://www2.mst.dk/Udgiv/publikationer/2005/87-7614-589-1/pdf/87-
7614-590-5.pdf (summary in English included in Annex B2 )).
2004
Government: State,
Local: Municipalities
IE (G1)
IE (G1)
2001
Government: State,
Local: Municipalities
IE (G1)
IE (G1)
AG-4f: Environmental Approval Act for
Livestock Holdings
Yes*
Agriculture
N2O, CH4
Reduction of fertilizer/manure use on
Regulatory
cropland (Agriculture), Improved livestock
management (Agriculture), Improved
animal waste management systems
(Agriculture)
Improved animal waste management
Economic
systems (Agriculture), Increase in
renewable energy (Energy supply), Switch
to less carbon-intensive fuels (Energy
supply)
Reduction of fertilizer/manure use on
Economic,
cropland (Agriculture), Increase in
Regulatory
renewable energy (Energy supply), Switch
to less carbon-intensive fuels (Energy
supply)
Increase in renewable energy (Energy
supply), Reduction of pesticides use (),
Reduction of tax on productive farmland
(), Conversion to organic farming ()
Economic,
Regulatory
Implemented
See text.
2007
Government:State,
Local:Municipalities
IE (G1)
IE (G1)
AG-6: Biogas plants
Yes*
Agriculture, Energy
CO2, CH4
Implemented
See text.
1987
Government: State
240
207
2020: ”Biogasproduktio s ko sekve ser for drivhusgasudled i g i la dbruget”
Rapport nr. 197 DCE, 2016 ( http://dce.au.dk/udgivelser/vr/nr-151-200/abstracts/nr-
197-biogasproduktions-konsekvenser-for-drivhusgasudledning-i-landbruget/ );
2030: Preliminary estimate (to be published, in Danish).
AG-9(expired): Agreement on Green
Growth
Yes*
Agriculture, Energy
N2O, CO2,
CH4
AG-11(new+expired): Agreement on
Green Growth 2.0
Yes*
Agriculture, Energy
CO2, CH4,
N2O
AG-12(new): Political Agreement on a
Food and Agricultural Package
Yes*
Agriculture
N2O, CO2
Improve the ability of the food and
Economic,
agricultural industry to increase primary
Regulatory
production and exports, as well as to
contribute to creating growth and jobs, in
due interaction with protection of nature
and the environment. ()
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
greenhouse gas
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
greenhouse gas
Implemented
See text.
2009
Government: State
500
0 The estimate for 2020 shown here is a former separate estimate for this measure.
As this measure has been replaced by measure no. AG-12, only the effect
estimated under AG-12 is included in the calculation of the total effect of all
measures.
2010
Government: Ministry
of Environment and
Food
0
0 Notat nr. 2, Vedrørende effekter af forskellige tiltag i forbindelse med Grøn Vækst,
Aarhus Universitet (
http://pure.au.dk/portal/files/38211855/010511_DJF_DMU_notat_2_inkl_Baselineg
ruppens_kommentarer_og_sp_rgsm_l.pdf , in Danish)
2016
Government: Ministry
of Environment and
Food
-122
-122
Answer to question no. 391 (ord. part) asked by the parliament's Committee for
Environment and Food on 15 Januar 2016
(http://www.ft.dk/samling/20151/almdel/mof/spm/391/svar/1299227/1598927/in
dex.htm , in Danish)
AG-13(new): Agreement on Nature (the
Nature Package)
Yes*
Agriculture,
Forestry/LULUCF
CO2, CH4,
N2O
Protection of biodiversity through
Regulatory
increased involvement of farmers in land
use planning, simplification of related
legislation etc. (), Protection of
biodiversity through increased
involvement of farmers in land use
planning, simplification of related
legislation etc. ()
Implemented
See text.
2016
Government: Ministry IE (G1)
of Environment and
Food
IE (G1)
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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4.3.8
LULUCF (Land-Use, Land-Use Change and Forestry)
4.3.8.1
CO
2
–
emissions and removals in LULUCF under the Climate Convention
The emission of GHGs from the LULUCF sector (Land Use, Land Use Change and
Forestry) includes primarily the emission of CO
2
from land use and small amounts of
N
2
O from disturbance of soils not included in the agricultural sector.
The LULUCF sector is subdivided into six major categories:
•
•
•
•
•
•
Forest
Cropland
Grassland
Wetlands
Settlements
Other Land
Forests and forestry are important due to CO
2
sequestration and emissions as a
consequence of trees growing, respiring and decomposing. Danish forests contain a
considerable store of CO
2
absorbed from the atmosphere. When new forests are
established, new CO
2
stores are created. Afforestation is therefore a useful climate
policy instrument.
The total sector has been estimated to be a net source of 0-8 % of the total
Danish emission incl. LULUCF (average 2013-2017). The average emission in
2013-2017 has been estimated to 2313 kt CO
2
equivalents with an emission of
2971 kt CO
2
equivalents in 2017.
Emissions/removals from the sector fluctuate based on specific conditions in the
given year. In general, the forest sector has been a net sink, while Cropland and
Grassland have been net sources. The latter due to a large area with drained organic
soils. Emissions from drained organic agricultural soils accounts for approximately
for 6-7 % of the total Danish emission incl. LULUCF in the latter years (this estimate
is under revision).
In years where the total sector accounts to approximately zero, the forest and/or the
agricultural mineral soils are net sinks. Forest has shown to be a large sink until 2014
and turned into a small net source in 2015 and 2016. In 2017, Forest was a small
sink. Since 2013, Forest has been estimated to be an accumulated net sink of 5397 kt
CO
2
equivalents. In 2017, Cropland has been estimated to be a net source of 4.7 % of
the total Danish emission incl. LULUCF. This is mainly due to a large area with
cultivated organic soils. Grassland is a net source contributing to 1.5 % of the total
Danish emission. This is also due to a large area with drained organic soils (the
estimated size of this area is under revision). Emissions from Cropland have shown a
continuous decrease since 1990 with 47 % and the emission from Grassland has
decreased with 22 %. However, large variations occur between years.
Forest policies
The political measure to increase carbon sequestration is the objective from the
National Forest Programme (2002): “Forest landscapes should cover 20-25%
of
Denmark after one tree generation (80-100 years)”
–
and the scope and potential for
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natural habitats and processes should be strengthened in this effort. This measure
relates to Article 3.3 of the Kyoto Protocol. Various measures have been taken
towards achieving this goal as shown in Table 4.25
17
. For instance, a government
grant scheme has been established as an incentive for afforestation on private
agricultural land. Also, the state itself is establishing new forests, and some private
individuals are establishing forests on agricultural land without a government grant.
Through rural planning and differentiated incentives, afforestation is particularly
encouraged in certain priority areas in order to pursue multiple forest functions and
values, implementing the water framework directive and including recreation and
ground water protection.
In October 2018 the Danish Ministry for Environment and Food launched a new
National Forest Programme. It sets out a long term vision and two long term goals
related to expansion of forest cover and biodiversity conservation, 13 strategic
orientation lines as well as a number of concrete actions for a multifunctional and
sustainable development of Danish forests.
The vision is “A forest area in growth with healthy and robust forests which
accommodate diversity and which provide for good opportunities for sustainable
timber production, which create jobs, take care of biodiversity and preserve natural
treasures, mitigate climate change, protect groundwater and offer great outdoor
experiences - in new and old forests and for the benefit of both present and future
generations”.
The long term goal for forest cover reads: “Before the end of the 21st century,
forested landscapes cover 20-25
pct. of Denmark's total area”. Thus, the goal relates
to “forest landscapes”, which
constitutes all forests and some surrounding areas as
well. However, a precise definition of forest landscapes has not been developed. The
Danish forest area is currently 14.5 pct. of the land cover.
Many strategic orientation lines relates to climate and energy, most notably those
below.
Under the header “More forest and less global warming”:
•
Increase the Danish forest area and increase the public utility of the new forests.
•
Increase the uptake and stocks of carbon in forests and wood products through
sustainable management.
Under the header Sustainable production:
•
A favourable and clear framework for sustainable production of timber and other
goods.
•
Increase the demand and supply of documentable sustainable timber.
•
Uniform, robust and operational criteria for "sustainable timber".
•
Continue the conversion and development of close to nature forestry.
Forest carbon estimations
In the estimation of carbon pools and emissions from existing forests, afforestation
and deforestation in 1990 to 2015, the information collected in relation to different
forest census and inventories is combined with the satellite-based land use/land cover
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map for the base year 1990, 2005 and 2011. Hereby, consistent estimates of
emissions from existing forests are obtained utilising as much information from the
data sources as possible and providing best possible time series. To estimate the
forest area satellite-based land use/land cover maps have been used for 1990, 2005
and 2011. From 2012 and onwards actual vector data are used.
Estimates of woody biomass carbon pools are obtained by applying species specific
biomass functions developed for the most important tree species in Denmark
(Skovsgaard et al. 2011; Skovsgaard and Nord-Larsen, 2012, Nord-Larsen and
Nielsen 2015) to individual tree measurements in the National Forest Inventory plots.
For tree species where no biomass function is available, stem volumen for conifers
and the total above-ground volumen for deciduous trees are calculated using species
specific volume or form factor functions. Subsequently, total stem or above ground
biomass is calculated by multiplying the volumes with species specific basic
densities for the wood. The estimated biomass is converted into total above-ground
and below-ground biomass by multiplying with expansion factors calculated from
expansion factor functions for beech and Norway spruce as representatives of
deciduous and coniferous species (Skovsgaard et al. 2011; Skovsgaard and Nord-
Larsen, 2012). The quantity of carbon is calculated by multiplying by the conversion
factor of 0.5 tonnes C/tonne dry matter.
Estimation of deadwood carbon pools follows the calculations stated above except
that a conversion factor is applied according to the degree of decomposition of the
wood.
Estimation of carbon pools in the forest floor (litter) is based on measurements of the
depth of the litter layer on the National Forest Inventory plots. As peat lands are
reported specifically, a maximum depth of 15 cm is used in the calculations. Forest-
floor carbon for individual species is estimated by multiplication of the forest floor
depth by the plot area, a species-specific density (Vesterdal & Raulund-Rasmussen,
1998) and the ground cover fraction of the individual species. Calculation of ground
cover fraction is based on the proportion of basal area of the individual species and
total forest-floor carbon is estimated by summation of forest-floor carbon of the
different species.
For estimation of carbon pools in the mineral soil, average carbon content for
different soil types (loamy, sandy and organic) were applied to the individual
National Forest Inventory plots according to their soil types determined from Danish
soil mapping. The average soil carbon contents used in this analysis were obtain in a
forest soil inventory in which it was documented that forest mineral soil is not an
overlooked source of CO
2
emissions. In a study, analysis of time series data did not
reveal any changes in forest mineral-soil carbon pools observed in 1990 and 2007-
2009.
A more detailed record of the calculations of carbon pools are provided by Nord-
Larsen and Johannsen (2016)
25
.
25
Nord-Larsen, T., & Johannsen, V. K. (2016). Danish National Forest Inventory: Design and calculations. Department of
Geosciences and Natural Resource Management, University of Copenhagen. (IGN Report). http://static-
curis.ku.dk/portal/files/164970017/Danish_National_Forest_Inventory.pdf
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Table 4.22 shows the total area reported under Forest Land (FL) under the
Convention. The area with FL has increased since 1990 due to an intensive
afforestation programme. In the beginning
of the 1990’s, approximately 3000 ha
were afforested every year. In recent years, approximately 1900 ha are afforested per
year. The estimated emission from organic matter varies between years. Mineral soils
are a small sink due to the afforestation. The CO
2
emission from organic soils is
slightly reduced over time due to rewetting of the organic soils in the forests.
T
ABLE
4.22 A
REA AND ANNUAL EMISSIONS
1990
TO
2017
FROM FOREST LAND
.
Source:
Denmark’s National Inventory Report 2019 and University of Copenhagen
- Department of Geosciences and Natural
Resource Management
Area and emissions
Area
Forest Land Area (1000 ha)
Emissions
Living and dead biomass, kt C
Litter, kt C
Dead wood, kt C
Mineral soils, kt C
Organic soils, kt C
Total, kt C
CH4, kt CH4
N2O, kt N2O
Total, kt CO2 eqv.
1990
548.7
-185.9
-17.9
-4.8
-0.6
52.6
-156.6
0.2
0.1
-542.5
2000
590.8
-185.4
-17.8
-4.8
-7.1
50.2
-165.0
0.7
0.1
-562.5
2010
627.7
-481.
-544.9
-43.8
-12.6
45.7
-1037.1
1.1
0.1
-3750.9
2013
637.3
-843.2
159.3
-23.0
-12.4
47.0
-672.2
1.2
0.1
-2412.1
2014
637.3
-840.3
-218.8
-69.7
-11.9
47.1
-1093.6
1.2
0.1
-3957.1
2015
637.5
-616.9
614.0
1.6
-11.6
47.3
44.3
1.2
0.1
215.4
2016
637.5
-29.8
174.4
0.0
-11.2
47.4
230.8
1.2
0.1
899.5
2017
638.6
216.5
-372.5
81.9
-10.7
47.5
-37.4
1.2
0.1
-83.8
Information on the accounting of emissions and removals related to forest activities
according to the Kyoto Protocol accounting rules is included in chapter 4.3.8.2.
Carbon sequestration in afforestation is stored in the total living biomass (incl. roots)
of the trees. Forests raised on agricultural land accumulate far more biomass than the
previous agricultural land-use. The forest biomass contains about 50% carbon, which
is absorbed as CO
2
through photosynthesis. Probably, additional carbon is stored in
the organic matter in the soil following afforestation of cropland due to a larger
supply of dead organic matter and the absence of soil preparation. Denmark reported
on sequestration in litter (forest floors) developing after conversion from agriculture
to forestry while mineral soil C stocks are reported as unchanged based on field
measurements. Previous studies did not indicate any consistent change in mineral
soil C stocks (Vesterdal
et al., 2002, 2007).
The effect of afforestation on other greenhouse gases, such as nitrous oxide and
methane has recently been studied in Denmark (Christiansen
and Gundersen, 2011).
The acidification of nitrogen-rich former agricultural land may stimulate the
formation of nitrous oxide, and blocking of drains after afforestation and the
resulting water stagnation could increase methane emissions. The recent projects
have shown that methane uptake in soils is in fact increased following afforestation
of well-drained soils, although only in oak stands, while methane uptake was
unchanged in Norway spruce (Christiansen
and Gundersen, 2011).
In more wet
afforested areas, methane may be emitted when drainage pipes stop working
(Christiansen
et al., 2012).
Nitrous oxide emissions increased with time since
afforestation in both oak and spruce stands (Christiansen
and Gundersen, 2011).
Increased methane and nitrous oxide emissions could to some degree counteract the
positive effect of afforestation on CO
2
sequestration. However, since information is
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still scarce on changes in the methane and nitrous oxide emissions, analyses of the
consequences of afforestation are only carried out for CO
2
.
The continued growth of new forests will provide for carbon sequestration on a long-
term basis. Owing to the legal protection of forest land use, the sequestration in
subsidised afforested land is expected to be permanent. If the objective of increasing
the forest area is to be achieved, however, an enhanced rate of planting will be
needed. Afforestation offers many other benefits in addition to CO
2
sequestration.
Conversion of farmlands into forest reduces the loss of nitrogen to the aquatic
environment. Besides playing a major role in protecting the aquatic environment
from nitrogen afforestation provides valuable groundwater protection and protection
of habitats for fauna and flora. Forest is also a highly valued type of nature in terms
of cultural values and landscape amenity and has great value for outdoor recreation.
In addition to carbon sequestration, afforestation thus contributes to a wide range of
values.
4.3.8.2
CO
2
–
emissions, removals and credits from Activities under Articles 3.3
and 3.4 of the Kyoto Protocol
In 2007, a research and monitoring programme for the monitoring and reporting
activities under Articles 3.3 and 3.4 was decided with a total budget of DKK 72
million. The results from this programme have been included in the annual reporting
of greenhouse gas inventories under the UNFCCC and the Kyoto Protocol since
April 2010 and the final results are approved under the Kyoto Protocol with the
publication of the inventory review report on 4 February 2015.
A new research and monitoring programme has been launched to cover the 2
nd
commitment period 2013-2020.
The results from these programmes are further described in the following sections.
In 2019, an analysis to improve the monitoring and accounting of carbon dioxide
uptake and storage in soils and forests was initiated. The estimation of carbon
sequestration in soils and forests is extremely complex. Therefore an analysis to
improve the estimation methodologies to better target increases in CO
2
sequestration
has been initiated.
4.3.8.2.1 Article 3.3
In accordance with Article 3.3 of the Kyoto Protocol, emissions and removals from
afforestation, reforestation and deforestation (ARD) activities have been included in
the accounting of Removal Units (RMUs) in the 1
st
commitment period 2008-2012
under the Protocol. The total accounted quantity in the 1
st
commitment from ARD
was a net loss of 255.9 Gg. Mainly due to a low growth rate in the afforested areas
and a high deforestation rate (Submission to UNFCCC in April 2014 and UNFCCC
inventory review report of 4 February 2015).
In total for the first 5 years of the 2
nd
commitment period afforestation, reforestation,
and deforestation (ARD) activities has been estimated to a net sink of approximately
949 Gg CO
2
-equivalent or in average 190 Gg CO
2
-equivalent per year.
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No reforestation was recorded in in the 1
st
commitment period or the first 5 years of
the 2
nd
commitment period.
4.3.8.2.2 Article 3.4
In accordance with Article 3.4 of the Kyoto Protocol, emissions and removals from
forest management (FM), cropland management (CM) and grazing land management
(GM) activities have been elected to be included in the accounting of RMUs in the 1
st
and 2
nd
commitment period under the Protocol.
Forest management
According to the final estimates for the 1
st
commitment period (2008-2012) (Nielsen
et al., 2014
and the
Inventory Review Report
published on 4 February 2015), average
CO
2
removals from Forest Management amounted to 4050 Gg. The included carbon
pools were above-ground and below-ground biomass, dead wood and soil. This
estimate was much higher than the specified maximum of credits as removal units for
Denmark at 183 Gg CO
2
(50Gg C) annually in 2008-2012.
In 2017 the preliminary removal for forest management for the years 2013 to 2017
has been estimated to 4638 Gg CO
2
-eq or equivalent to 928 Gg CO
2
-eq in average
per year (Nielsen
et al., 2019).
This combined with a Forest Management Reference
Level (FMRL) of 407 Gg as inscribed in the appendix of the annex to decision
2/CMP.7 and a preliminary technical correction of -82.6 Gg (Nielsen
et al., 2019)
gives a preliminary net accounting of 6270 Gg CO
2
-eq or equivalent to 1254 Gg
CO
2
-eq in average per year from Forest Management in 2013-2017.
Emissions from forest management may originate from an increased harvesting
caused by an uneven age distribution such as observed for beech in Denmark.
However, the observed emissions origins from a lower sequestration in living
biomass than usually observed and an unexplained loss of carbon in the forest litter
pool.
Harvested wood products (HWP)
Carbon emissions from harvested wood products (HWP) have been reported since
2013. Denmark has chosen to report under Approach B, the production approach,
which refers to equations 12.1, 12.3 and 12.A.6 of volume 4 of the 2006 IPCC
Guidelines and the 2013 Supplementary GPG.
According to a questionnaire on the production of the Danish wood industry, the
production of sawnwood in 2017 was about 686.000 m
3
, while the production of
woodbased panels was about 428.000 m
3
, which both are an increase compared to
2016. The questionnaire covered an estimated 90 % of the revenue generated in the
sawnwood sector and 100 % of the sector revenue for wood-based panels (there were
only two relevant companies). A cross validation of the roundwood consumption
showed an average deviation of 8 % for 2011-2013 between the Questionnaire and
the figures reported by Statistics Denmark based on harvest and trade statistics. As of
2017, the HWP pool originating from domestic harvest and domestic consumption
consisted of about 5 million tonnes carbon (67 % from sawnwood and 33 % from
wood-based panels
–
the paper pool was insignificant). This is equivalent to 13 % of
the carbon stock in live forest biomass. If imported wood were also included, the
pool increases to about 29 million tonnes carbon equivalent to 75 % of the carbon
stock in live forest biomass. The total inflow of carbon to the HWP pool in 2017 is
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reported to about 164.000 tonnes carbon - 64.000 tonnes from sawnwood and
100.000 tonnes from woodbased panels. The outflow from the pool is reported to
about 115.000 tonnes carbon in 2017 - 66.000 tonnes from sawnwood and 49.000
tonnes carbon from wood-based panels. Thus, there has been a net carbon
sequestration in HWP of about 44.000 tonnes carbon in 2017. See Table 4.23.
The estimate of the size of the total HWP stock is quite uncertain, as the empirical
basis for the FOD model and the attached half-lives is weak. Conducting direct
inventories of the carbon stock may be a method to reduce uncertainty. In the Danish
case, estimates based on the FOD model for the total HWP pool, including imported
wood and converted to finished wood products actually came quite close, when
measured per capita, to estimates from Finland originating from a direct inventory.
Regarding estimates for pool changes, uncertainty on half-life may be of less
importance, as longer retention time in the pool may be traded off against higher
emissions levels from the historic pool. This depends on the characteristics of the
pool, i.e. the size of the pool vs. the recent inflow. Uncertainty on activity data
relates to both uncertainty on measurements, e.g. caused by reporting errors, and
statistical uncertainty, caused by variation in the sampled population.
Judging from the coverage and the validation results, surveying the production of
semi-finished wood products in Denmark by questionnaire has been successful. It
will be repeated in the following years as part of the future reporting of HWP.
T
ABLE
4.23. HWP
IN USE FROM DOMESTIC HARVEST
(CRF
TABLE
4.G
S
1).
Source: Denmark’s National
Inventory Report 2019
HWP in use from domestic harvest
HWP
produced
consumed domestically
(ΔC HWPdom IU DH)
(t C)
Total
1. Solid wood
Sawn wood
Wood panels
2. Paper and paperboard
190140.0
190140.0
74927.3
115212.7
NO
-145822.6
-145735.3
-77765.3
-67970.0
-87.4
35.00
25.00
2.00
(yr)
and
Gains
Losses
Half-life
Annual Change
in stock
(ΔC HWP IU DH)
(kt C)
44.3
44.4
-2.8
47.2
-0.1
Net emissions/
removals from
HWP in use
(kt CO
2
)
-162.4
-162.7
-10.4
-173.1
0.3
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Cropland management and Grazing land management:
In 2006, the government at that time decided to include removals of CO
2
by soils
(Article 3.4 of the Kyoto Protocol) in the calculation of Denmark's climate accounts
under the Kyoto Protocol.
From 1990 to the 1
st
commitment period 2008-2012 Cropland management and
Grazing land management has shown a net reduction in greenhouse gas emissions of
7697 Gg CO
2
-equivalents or in average 1539 Gg CO
2
-equivalents per year.
From 1990 to the first five years of the 2
nd
commitment period, i.e. 2013-2017,
Cropland management and Grazing land management has shown a net reduction in
emissions of 10119 Gg CO
2
-eq. or in average of 2024 Gg CO
2
-equivalents per year.
Contributions to the Kyoto Protocol under Article 3.4 concern changes to vegetation
and soil carbon stocks. Under the Kyoto Protocol, the flows of carbon to and from
biomass and soils are stated according to a net-net principle by which the change in
net emissions is calculated as the rate of change for the carbon stock in the 1
st
and 2
nd
commitment period less the rate of change for the carbon stock in the reference year
(1990). As elected land cannot leave an elected activity, emissions from areas, which
have been converted from Cropland and Grassland to Wetlands and Settlements in
the commitment periods, are included in the accounting. For agriculture, the
following potential sources of CO
2
emissions and CO
2
sequestration have been
included:
1.
2.
3.
Net change in the content of carbon in mineral soils in connection with
changed land use and cultivation.
Net change in the soil's carbon stock in connection with drainage and
cultivation of organic soils or re-establishment of wetlands.
Change in the carbon content of wood biomass in wind breaks and fruit
farms.
The agricultural mineral soils has shown to be a steady increasing sink. This is
primarily due to increased yields, better management, ban on straw burning, statutory
requirements for catch crops, etc.
One of the measures with an effect on return of carbon to the soil has been the ban on
burning of straw residues on fields as shown in Table 4.25.
The ban has resulted in greater return of carbon to the soil, and therefore increased
carbon storage in the soil, as well as increased use of straw as a fuel. Both uses will
result in a net reduction in CO
2
emissions. Not burning straw prevents the methane
and nitrous oxide emissions associated with the burning. On the other hand, there are
some emissions of nitrous oxide in connection with the return of nitrogen to the soil
when the straw is mulched.
The measure works by regulating behaviour, and the ban was introduced from 1990.
The measure was implemented in the form of a statutory order under the
Environmental Protection Act. Ban on field burning is a part of cross compliance
under EUs Common Agricultural Policy.
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Demands on growing catch crops (primarily grass) in the autumn to reduce the
nitrate leaching do also sequester CO
2
. The area today is approximately 440.000
hectares or approximately 16 % of the agricultural area.
The agricultural yields are projected to increase in the future due to a shift in the
fertilizer regulation from 2015. Higher yields will result in a higher amount of crop
residues returned to soil and secondary increase the soil carbon stock.
Another measure which will increase sequestration in woody biomass is the planting
of windbreaks also mentioned in Table 4.25. The objective of planting windbreaks
has primarily been to reduce wind erosion and ensure greater biodiversity. Planting
of windbreaks has been supported under conditions described in the Statutory Order
on Subsidies for Planting Windbreaks and Biotope-improving Measures (Statutory
Order no. 1101 of 12/12/2002). Support has been granted under the EU Rural
Districts Programme. For the period 2017-2019 windbreaks will be established under
the political agreement of May 2016 called “Naturpakken” and will focus primarily
on ensuring greater biodiversity. Since the end of the 1960s about 1,000 km of tree-
lined windbreaks have been planted with government subsidies. It is also estimated
that about 30% more has been planted without subsidies. Estimates indicate that
planting of windbreaks leads to CO
2
sequestration in woody biomass of about
130,000 tonnes CO
2
/year
26
.
Total from activities under Articles 3.3 and 3.4
The total amount of net RMU credits from activities under Articles 3.3 and 3.4 is
estimated at 8.6 million RMUs (or tonnes of CO
2
-equivalents) for the whole period
2008-2012 or as the average per year 1.7 million RMUs.
The total preliminary amounts of net RMU credits under Articles 3.3 and 3.4 has
been estimated to 17.3 million RMUs (or tonnes CO
2
-equivalents) in the first five
years of 2
nd
commitment period or in average 3.5 million RMUs per year.
Further information on the accounting of emissions and removals related to activities
under Articles 3.3 and 3.4 under the Kyoto Protocol is included in Table 4.24.
26
Gyldenkærne et al, 2005: Gyldenkærne, S., Münier, B., Olesen, J.E., Olesen, S.E., Petersen, B.M. & Christensen, B.T.
(2005). Opgørelse af CO
2
-emissioner fra arealanvendelse og ændringer i arealanvendelse. Arbejdsrapport fra DMU (under
preparation,, in Danish).
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4.24. INFORMATION ON ACCOUNTING FOR ACTIVITIES UNDER ARTICLES 3.3 AND
3.4 OF THE KYOTO PROTOCOL
Source:
Denmark’s National Inventory Report 2019
Base
Year(2)
2013
A. Article 3.3 activities
A.1. Afforestation/reforestation
Excluded emissions from natural disturbances(5)
Excluded subsequent removals from land subject to natural disturbances(6)
A.2. Deforestation
B. Article 3.4 activities
B.1. Forest management
Net emissions/removals
Excluded emissions from natural disturbances(5)
Excluded subsequent removals from land subject to natural disturbances(6)
Any debits from newly established forest (CEF-ne)(7),(8)
Forest management reference level (FMRL)(9)
Technical corrections to FMRL(10)
Forest management cap(11)
B.2. Cropland management (if elected)
B.3. Grazing land management (if elected)
B.4. Revegetation (if elected)
B.5. Wetland drainage and rewetting (if elected)
4470,10 2043,95 3152,12 2608,81 2854,47 2429,18
1000,51
NA
NA
844,01
NA
NA
954,02
NA
NA
783,29
NA
NA
789,24
NA
NA
775,17
NA
NA
13088,53
4145,74
NA
NA
NA
NA
NA
NA
NA
NA
409,00
-82,62
19822,07
-6269,90
-9261,95
-856,83
NA
NA
NA
-2546,39 -3774,33
NA
NA
667,52
NA
677,72
NA
337,49
NA
-4637,98
-4637,98
NA
NA
-6269,90
38,51
116,33
252,32
147,38
23,67
578,20
578,20
8,56
NA
-341,86 -620,66
NA
NA
27,58 -600,50
NA
NA
-1526,89
NA
-1526,89
NA
2014
NET EMIS S IONS /REMOVALS
Accounting
parameters
Accounting
quantity
(4)
GREENHOUS E GAS S OURCE AND S INK ACTIVITIES
2015
2016
2017
2018 2019 2020 Total(3)
(kt CO2 eq)
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4.25 M
EASURES IN THE
L
AND
-
USE
, L
AND
-
USE CHANGE AND
F
ORESTRY SECTOR
(LULUCF)
Name of mitigation action
Included in with
Sector(s)
measures GHG
affected
projection scenario
GHG(s)
affected
Objective and/or activity affected
Type of
instrument
Status of
implementation
Brief
description
Start year of
imple-
mentation
Implementing entity
or entities
Estimate of
mitigation impact
(not cumulative,
in kt CO2 eq)**
2020
IE (G7)
2030
IE (G7)
Source of estimates
LU-1: Ban on burning straw on fields
Yes*
Forestry/LULUCF
CO2
Conservation of carbon in agricultural soils Economic
and reduction of air pollution. ()
Enhancing carbon sequestration through
planting of windbreaks ()
Economic
Implemented
See text.
1989
Government: State,
Local: Municipalities
LU-2: Planting of windbreaks
Yes*
Forestry/LULUCF
CO2
Implemented
See text.
1960
LU-3: Subsidies scheme for private
afforestation on agricultural land
(increase the forest area in Denmark)
Yes*
Forestry/LULUCF
CO2
Afforestation and reforestation (LULUCF), Economic
Strengthening protection against natural
disturbances (LULUCF)
Implemented
See text.
1991
Government: Ministry IE (G7)
of Environment and
Food
Government: Danish IE (G7)
Environmental
Protection Agency
IE (G7)
IE (G7)
LU-4: Public afforestation (state and
municipalities)
Yes*
Forestry/LULUCF
CO2
Afforestation and reforestation (LULUCF), Regulatory,
Strengthening protection against natural Voluntary
disturbances (LULUCF)
Agreement
Implemented
See text.
1989
Government: Danish
Environmental
Protection Agency,
Local: Municipalities
IE (G7)
IE (G7)
LU-5: Subsidy for conversion of arable
land on organic soils to nature
Yes*
Forestry/LULUCF,
Agriculture
CO2, N2O
Reduction of fertilizer/manure use on
cropland (Agriculture), Prevention of
drainage or rewetting of wetlands
(LULUCF)
Economic
Implemented
See text.
2015
Government: Ministry IE (G7)
of Environment and
Food
IE (G7)
G7(new): LULUCF activities
No
Combined (LU-1, -2, - Combined
3, -4 and -5)
Combined
Combined
Combined
Combined
Combined
Combined
1740
1740
Estimates by DCE, 2017 (http://dce2.au.dk/pub/SR244.pdf ).
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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4.3.9 Waste
The direct contribution of the waste sector to greenhouse gas emissions consists
primarily of methane from the decomposition of organic waste that takes place at
landfill sites. Greenhouse gas emissions from wastewater treatment included both
methane (85%) and nitrous oxide (14%) in 2017. Out of the total greenhouse gas
emissions from the waste sector of 1.1 million tonnes CO
2
equivalents in 2017
–
corresponding to 2.4% of total Danish greenhouse gas emissions
–
the proportion
from landfills was 57%, from compost production 20%, from wastewater treatment
15%, from biogas plants 6% and 2% from other minor sources such as accidental
fires.
Please note that all incineration of waste in Denmark is associated with energy
utilisation, which is why the emission of CO
2
from the incineration of plastic waste is
included under the energy sector.
4.3.9.1
CH
4
(methane)
In previous years, efforts within the waste sector have been based on the Action Plan
for Waste and Recycling 1993-97, which included targets on waste treatment up to the
year 2000. The plan did not relate directly to the waste sector's contribution to methane
emissions (CH
4
), but included a number of initiatives that are of relevance to waste
products containing industrial gases (HFCs and SF
6
), besides an objective concerning
stopping landfilling combustible waste.
Nor did the subsequent waste plan, Waste 21, which covers the period 1998-2004,
relate directly to the waste sector's possibilities for contributing to solution of the
problem of greenhouse gas emissions. The plan aimed at stabilising the total quantities
of waste in 2004, and increasing recycling and reducing the environmental burden from
the environmentally harmful substances in waste, including the industrial gases. With
respect to waste incineration, the objective was to adjust incineration capacity to what
was absolutely necessary to ensure best possible energy utilisation, maximum CO
2
displacement and regional self-sufficiency. The plan thus contributed indirectly to
reduction of greenhouse gas emissions.
The objective in Waste 21 was for 64% of all waste to be recycled, 24% to be
incinerated and not more than 12% to be landfilled.
That objective was already reached in the year 2000, and according to the Danish
Environmental Protection Agency's Waste Statistics 2000 (ISAG) total waste in that
year amounted to about 12.8 million tonnes.
Waste Strategy 2005-08 was issued in September 2003. The Waste Strategy aimed at
decoupling growth in waste amounts from economic growth. The Strategy also aimed
at preventing the loss of resources in waste and environmental impacts from waste, as
well as better quality waste treatment and an efficient waste sector. Finally, the strategy
aimed at reducing waste amounts sent to landfill to 9% in 2008 and increasing recycling
to 65% of all waste.
The most important initiatives regarding greenhouse gases in the Strategy were
improvement of landfills and increased collection of plastic packaging for recycling.
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The first part of the Waste Strategy 2009-12 was issued in March 2009 and the second
part was issued in June 2010. The recycling target for all waste was still 65%, and the
target for overall waste amount sent to landfills was reduced to 6%.
The current waste strategy (Denmark
without Waste I + II)
reflects a general change of
focus in Denmark to considering waste as a resource. The Danish waste strategy
includes 1) a Resource Strategy and a Resource Plan for waste management which
focuses on increasing recycling and 2) a Waste Prevention Strategy.
The Resource Strategy and the Resource Plan for waste management 2013-18
(Denmark
without Waste I)
includes a goal of 50% recycling of seven fractions
(organic, paper, cardboard, glass, plastic, wood and metal) of household waste in 2022.
The strategy focuses also on organic waste from households and the service sector,
recovery of metals etc. in waste electrical and electronic waste (WEEE) and shredder
waste, construction and demolition waste and phosphorous in sewage sludge.
It is estimated that the initiatives in the strategy will lead to a decrease in the amount
of incinerated waste (820.000 tonne less in 2022).
The Waste Prevention Strategy (Denmark
Without Waste II)
2015-20 includes a
number of initiatives with a special focus on food waste, textiles, electronic equipment,
packaging and construction.
Both the Resource Strategy for Waste Management and the Waste Prevention Strategy
have the purpose of keeping materials and products in circulation thus reducing primary
production of materials and products, which is often energy demanding. The two
strategies thus lead to indirect greenhouse gas savings, which are not directly
quantifiable.
The latest figures for waste in Denmark are in the Danish EPA Waste Statistics 2017.
Total waste (primary waste, excluding soil) in 2017 was 11.7 million tonnes of which
68% was recycled, 29% incinerated, and 3% landfilled.
The waste sector's contribution to the direct reduction of greenhouse gas emissions
consists mainly in:
banning the landfilling of organic waste,
utilising gas from closed as well as existing landfills,
optimising the oxidation of methane gas in landfill covers (biocovers),
recovery of shredder waste from landfills.
On the top of this there are measures that indirectly reduce greenhouse gas emissions:
increasing recycling of plastic-, paper-, cardboard-metal-, WEEE-, wood-, and glass-
waste, that will substitute primary production of materials
using waste (except for plastics) as an energy source in dedicated incineration plants
digestion of organic waste to produce biogas.
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An overview of the detailed measures implemented in the pursuance of these objectives
is given in Table 4.26
27
. The emission of methane from Danish landfills is calculated to
have been 71,000 tonnes gross in 1990, decreasing to approximately 33,800 tonnes in
2013, corresponding to a 52 per cent reduction.
As a consequence of the municipal obligation to assign combustible waste to
incineration, from 1 January 1997, methane emissions from the Danish landfills will
continue to decrease in the years ahead.
According to the Danish Energy Authority's inventory Biogas, Production, Forecast and
Target Figures, there were 25 gas plants at Danish landfills in 2002. These installations
produced 10,000 tonnes of methane annually, compared to approx. 1,700 tonnes in
1993. In 2004, methane recovery from landfills amounted to 7,700 tonnes methane
28
.
The same study shows that, through optimising existing gas plants, a further 1,800
tonnes methane per year could be recovered over the next five years. Furthermore, the
establishment of new gas-collection equipment at five landfills could contribute with
additional 1,300 tonnes methane per year over the next five years.
However, optimisation of existing plant and establishment of new gas plants will
probably require subsidies. The previous subsidy scheme to promote gas collection at
landfills was discontinued at the end of 2001.
Only a few landfill gas plants are expected to be established in the future. The
maximum quantity of methane recovered peaked in 1998 at about 13,200 tonnes. The
quantity of methane recovered will continue to fall gradually over many years.
The total quantity of waste incinerated rose from 2,216,000 tonnes in 1994 to 3,335,000
tonnes in 2017, i.e. an approximately 50% increase. This is a slight decrease compared
to 2006 where 3,489,000 tonne of waste was incinerated. The energy produced from the
non-fossil part of waste used as fuel in the incineration plants is included as part of the
renewable energy production in the Danish energy statistics. The international
greenhouse gas inventories include greenhouse gases from incineration of the content of
oil-based products, such as plastics in waste.
In accordance with the targets in the waste strategies, waste incineration plants are
designed so as to optimise energy utilisation.
Besides the direct effect of waste management on greenhouse gas emissions, the
emissions are also affected indirectly through recycling of paper, cardboard, plastic,
metals, etc. which means less energy consumption and thus less CO
2
emissions during
production of raw materials and new products.
The implementation of national waste plans and fulfilment of targets has necessitated
the implementation of a wide range of measures.
In 1996 the Statutory Order on Waste was amended to introduce a municipal obligation
to assign combustible waste to incineration (corresponding to a stop for disposal of
27
Following the three sub-tables
cf. Annex XI in “COMMISSION IMPLEMENTING REGULATION (EU) No 749/2014 of 30
June 2014 on structure, format, submission processes and review of information reported by Member States pursuant to
Regulation (EU) No 525/2013 of the European Parliament and of the Council“ (http://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:32014R0749&from=EN) and displaying the current content of the EEA database on
EU Member States’ policies and measures (PaMs).
28
Willumsen, 2004
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combustible waste at landfills). As a result of this, large quantities of combustible waste
that used to be disposed of at landfills are now either recycled or used as fuel in Danish
incineration plants.
Besides the traditional regulation via legislation, statutory orders, and circulars, the
waste sector is regulated by means of a range of policies and measures, including taxes
and charges, grant schemes and agreements.
A tax on landfilling and incineration of waste was introduced in Denmark in 1987.
Since 1993 the tax has been differentiated to reflect the political priorities of the
different forms of treatment. It thus costs most to landfill waste, less to incinerate the
waste and nothing in tax to recycle waste. The waste tax has been increased several
times and today (November 2018) the waste tax is DKK 475 per tonne waste disposed
of at landfills. With effect from 1 January 1999, the so-called waste heat tax introduced
as part of the Coal Tax Act (see chapter 4.3.3.1.1). The waste heat tax was introduced in
connection with increases in general taxes on fossil fuels to avoid giving too much
incentive in favour of waste-based heat production, and to counteract the increased
incentive for incineration of waste instead of recycling. From 1 January 2010, energy
from waste incineration imposed waste heat tax,. The taxes thus provides an incentive
to recycle as much of the waste produced as possible and to use non-recyclable,
combustible waste as fuel in energy production instead of disposal of the waste at
landfills.
Weight-and-volume-based taxes (e.g. on various packaging and carrier bags) encourage
a reduction in packaging consumption and thus the quantities of waste. The weight-
based tax is based on an index that reflects the environmental burden of the materials
used.
Under the Danish EPA’s “Programme for Cleaner Products etc.”, grants were made for
projects that reduced the environmental burden in connection with development,
production, sale and use of products or in connection with the management of the waste
generated during the product's entire lifecycle. Furthermore, support could be granted to
waste projects aiming at reducing the problems in connection with disposal of waste. A
total of approximately DKK 100 million for the part of the programme related to waste
was allocated for the 5-year period 1999 to 2003.
In 2005 the Programme for Cleaner Products etc. was replaced by the Danish
government’s
“Enterprise Scheme”
which refunds CO
2
taxes to business. The waste
part of this programme was aimed exclusively at enterprises. A total of DKK 33 million
for the five-year period 2004 to 2008 was earmarked for the waste part of the scheme.
The subsidies were to be used to reduce the environmental impact of waste.
In 2005, the Danish EPA also supported initiation of a development project aiming at
documenting the oxidation of methane in landfill biocovers. By applying covers mainly
consisting of compost, optimal oxidation in covers can be ensured and methane
emissions from landfills can be reduced. If the reduction can be documented it can be
credited to the CO
2
accounts. This bio-cover project was carried out by the Technical
University of Denmark with funding from the EU LIFE Programme. The bio-cover
project has established a viable methodology for documentation of the reduction of
greenhouse gas emissions gained by installation of a bio-cover system on a landfill.
The methodology consists of a logical order of tasks using well documented
measuring technologies. The demonstration project also proved that several obstacles
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may occur in relation to the biocovers on landfills which can prevent an efficient
greenhouse gas reduction, and the project has obtained an understanding of which
precautions should be taken.
The most important obstacles are:
a) Ability to control point gas releases,
b) Ability to distribute the landfill gas to active parts of the bio-cover system, and
c) Ability to obtain a spatially even gas distribution to active parts of the bio-cover.
Due to the obstacles the goal of reaching a 90% reduction of the methane emission
was not reached; the obtained reduction was in the 20-30% range.
To address the obstacles and to improve the method, another biocover-project was
initiated in 2007 as part of the Enterprise Scheme. The project was performed on
another landfill, and was taking the identified difficulties into account. A reduction
of the methane emission of 79-93 % was reported in the project.
Based on the promising results of the latest large scale biocover-project combined
with a low shadow price, approximately 180 mio. DKK has been allocated to a
Subsidy programme for biocovers at landfill sites. The subsidy programme is
expected to run from 2016
–
2019, and the estimated reduction in methane-emission
in the year 2021 is 300,000 t CO
2
-equivalents. The actual methane-emission
reduction will be assessed when the subsidy programme is finalized.
In 2007 subsidies from the enterprise scheme were given for establishing methane
recovery and test pumping at 11 landfill sites. The results were reported in 2011 and
showed a reduction of the emission of methane over a five year period equalling
84,435 tonnes of CO
2
equivalents.
The goal in the EU Packaging Directive of increasing the collection of plastic
packaging waste for recycling to 22.5% was met in 2008 through an amendment to the
Statutory Order on Waste requiring municipalities to improve the possibilities of people
and enterprises to separate and deliver plastic packaging waste for recycling. This
meant an increase in recycling of about 12,000 tonnes in 2012 compared to 2008.
Furthermore, producer responsibility obligations have been introduced concerning
waste electrical and electronic equipment (WEEE) and batteries due to new EU
Directives resulting in higher collection and recycling rates of these used products. The
aim is to increase recycling of metals significantly, resulting in energy savings
compared to extraction and refining of virgin materials.
On the basis of the EU Landfill Directive, demands on the establishment and operation
of landfills in Denmark have been tightened with Statutory Orders No. 650 of 29 June
2001, No. 252 of 31 March 2009, No. 719 of 24 June 2011 and No. 1049 of 28
th
of
August 2013 on landfills. According to the Statutory Orders on landfills, methane in
landfills for mixed waste must be monitored. From landfills where significant amounts
of biodegradable waste are disposed of, methane gas must be managed in an
environmentally-sound way.
An amendment to the Statutory Order on Waste in 2000 means that municipalities
should assign non-recyclable waste PVC and impregnated wood to landfill. The
objective was to avoid adding PVC and impregnated wood to incineration with the
consequential pollution of flue gas and slag. According to the current Statutory Order
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on Waste (2018), the municipalities shall ensure that recyclable and non-recyclable
PVC is collected. Recyclable PVC should be recycled whereas non-recyclable PVC
should be assigned to landfill. Impregnated wood should be collected and landfilled,
unless the municipality classify the waste wood as suitable for material recovery or
incineration. Today, most impregnated wood is classified as suitable for incineration
and exported to incineration with energy recovery in Germany.
It is not possible to make a quantitative estimate of the effects of the various measures
for the waste area. The objectives in the national waste plans are related to waste
amounts and their treatment. The developments are monitored through the annual waste
statistics. However, changes in the treatment of waste cannot immediately be converted
into changes in emissions of greenhouse gases.
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T
ABLE
4.26 M
EASURES IN THE WASTE SECTOR
Name of mitigation action
Included in with
Sector(s)
measures GHG
affected
projection scenario
GHG(s)
affected
Objective and/or activity affected
Type of
instrument
Status of
implementation
Brief
description
Start year of
imple-
mentation
Implementing entity
or entities
Estimate of
mitigation impact
(not cumulative,
in kt CO2 eq)**
2020
WA-1: A ban of landfill of combustible
waste.
Yes*
Waste
CH4
management/waste
Reduced landfilling (Waste), Waste
incineration with energy use (Waste),
Enhanced recycling (Waste)
Regulatory
Implemented
See text.
1997
Local: Municipalities
333
2030
333
Estimates in 2017 - based on The 2005 Effort Analysis
(http://www2.mst.dk/udgiv/publikationer/2005/87-7614-587-5/pdf/87-7614-588-
3.pdf and http://www2.mst.dk/Udgiv/publikationer/2005/87-7614-589-1/pdf/87-
7614-590-5.pdf (summary in English included in Annex B2 )).
Source of estimates
WA-2: The waste tax
Yes*
Waste
CH4
management/waste
Waste
CO2, CH4
management/waste
Waste
CH4
management/waste
Waste
CO2
management/waste
Waste
CH4
management/waste
Reduced landfilling (Waste)
Economic, Fiscal Implemented
See text.
1987
Government: Ministry IE (G1)
of Taxation
Government: Ministry IE (G1)
of Taxation
Government: Ministry IE (G1)
for the Environment
Government: Danish
Environmental
Protection Agency
Government: Danish
Environmental
Protection Agency,
Local: Municipalities
Government: Danish
Energy Authority
IE (G1)
IE (G1)
WA-3: Weight-and-volume-based
packaging taxes
WA-4: Subsidy progra
e – E terprise
Scheme (special scheme for businesses)
WA-5: Increased recycling of waste
plastic packaging
WA-6: Implementation of the EU landfill
directive
Yes*
Demand management / reduction (Waste) Economic, Fiscal Implemented
See text.
2014
IE (G1)
Yes*
Demand management / reduction (Waste) Economic
Implemented
See text.
2004
IE (G1)
Yes*
Enhanced recycling (Waste)
Regulatory
Implemented
See text.
1994
IE (G1)
Yes*
Improved landfill management (Waste)
Regulatory
Implemented
See text.
1999
IE (G1)
IE (G1)
WA-7(expired): Support for
(construction of facilities for) gas
recovery at landfill sites
Yes*
Waste
CO2, CH4
management/waste
Enhanced CH4 collection and use (Waste) Economic
WA-8(expired): Subsidy programme for
cleaner products
Yes*
Waste
CH4
management/waste
Demand management / reduction (Waste) Economic
WA-9: Subsidy programme for biocovers
on landfills
Yes*
Waste
CH4
management/waste
Improved landfill management (Waste)
Economic
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
greenhouse gas
Implemented
See text.
(and Expired - but
included as it is
expected to have
influenced the level of
total Danish
greenhouse gas
Implemented
See text.
1984
205
205
Estimates in 2017 - based on The 2005 Effort Analysis
(http://www2.mst.dk/udgiv/publikationer/2005/87-7614-587-5/pdf/87-7614-588-
3.pdf and http://www2.mst.dk/Udgiv/publikationer/2005/87-7614-589-1/pdf/87-
7614-590-5.pdf (summary in English included in Annex B2 )).
1999
Government: Ministry IE (G1)
for the Environment
IE (G1)
2017
Government: Danish
Environmetal
Protection Agency
300
179
Estimates by the Danish Energy Agency, March 2017 - based on
"Virkemiddelkatalog, Tværministeriel arbejdsgruppe, August 2013, Klima-, Energi-
og Bygningsministeriet" (
https://ens.dk/sites/ens.dk/files/Analyser/virkemiddelkatalog_-
_potentialer_og_omkostninger_for_klimatiltag.pdf )
75288
Calculated as the sum of the effects estimated for G3, G4, TD-9, TR-12, G6, AG-1, AG-
6, AG-12, WA-1, WA-7 and WA9.
G1(changed): Group of all policies and
measures except in the LULUCF sector
Yes*
Combined (TD-b1, -2, Combined
-3, -4, -5, -6, -7, -8, -9;
EN-1, -2, -3, -4, -5, -6;
BU-1, -2, -6, -7, -8, -9, -
10; TR-1a, -1b, -2, -3, -
4, -5, -6, -7, -8, -9, -10,
-11, -12; HO-1, -2, -3, -
4, -5, -6; IP-1; AG-1, -
2, -4a-f, -6, -9, -11, -
12, -13; WA-1, -2, -3, -
4, -5,- 6, -7, -8, -9)
Combined
Combined
Combined
Combined
Combined
Combined
50671
* In principle included in the "with measures" projection scenario - not necessarily with separate annual estimates, but in most cases as a result of the assumption that the measure has contributed to the observed level of
total Danish greenhouse gas emissions in the most recent historical inventory year used as the starting point for the projections.
** Estimated annual effects in 2020 and 2030 of measures implemented or adopted since 1990 - i.e. emission reductions and avoided emission increases since 1990.
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ENMARK
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IRST
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INAL
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NTEGRATED NATIONAL ENERGY AND CLIMATE PLAN
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BR4
UNDER THE
UNFCCC)
91
 KEF, Alm.del - 2019-20 - Bilag 144: Orientering om aflevering af Danmarks nationale energi- og klimaplan
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ENMARK
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S
F
IRST
F
INAL
I
NTEGRATED NATIONAL ENERGY AND CLIMATE PLAN
(
AND
BR4
UNDER THE
UNFCCC)
92