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Denmark Green Business Tax Guide

Denmark's 2022 Green Tax Reform is phasing in a CO₂ tax of 750 kr/ton by 2030 for non-quota businesses and a new emissionsafgift (CO₂e tax) for quota-covered sectors. Energy tax refunds are being restructured with CO₂ refund rates declining from 53.3% (2025) to 0% (2030). The reform covers energy taxes, CO₂ taxes, and a new emissions tax, with special reduced rates for mineralogical processes (cement) and agriculture. For renewable energy-specific rules — wind turbine depreciation, solar PV taxation, biogas, Power-to-X, and green certificates — see our Renewable Energy Tax Guide →. For aviation-specific green taxes — flyafgift (air passenger duty), SAF blending mandate, and CORSIA — see our Aviation Tax Guide →. For waste tax (affaldsafgift), recycling incentives, and circular economy tax rules, see our Waste and Circular Economy Tax Guide →. For raw materials extraction tax (råstofafgift) and quarry/restoration tax rules, see our Mining and Raw Materials Tax Guide →.

Overview of the Green Tax Reform (2022)

Denmark's landmark Green Tax Reform (Grøn Skattereform) was agreed in June 2022 and is being phased in from 2025 to 2030. Its goal is a 4.3 million ton CO₂ reduction by 2030 through higher and more uniform carbon pricing. Key elements: a new emissions tax for quota-covered sectors, a significantly increased CO₂ tax for non-quota sectors, and restructuring of energy taxes. A Green Fund (Grøn Fond) of approximately EUR 7.2 billion supports green investments from 2024 to 2040, including offshore wind and CO₂ capture and storage.

CO₂ Tax (Non-Quota Sectors)

For businesses outside the EU Emissions Trading System (ETS), the CO₂ tax is increasing steadily to 750 kr/ton by 2030:

  • 2025: ~170 kr/ton (including energy tax restructuring)
  • 2026: ~260 kr/ton
  • 2027: ~340 kr/ton
  • 2028: ~420 kr/ton
  • 2029: ~510 kr/ton
  • 2030: 750 kr/ton

The CO₂ tax applies to all fossil fuel consumption — processing, heating, and hot water. The CO₂ tax on petrol, diesel, natural gas, and coal was over 400% higher in 2025 than in 2024.

CO₂ Tax Refund (Godtgørelse)

Businesses can claim refunds on CO₂ tax for process-related consumption. The refund percentage declines over time:

  • 2025: 53.33% refund
  • 2026: 42.67% refund
  • 2027: 32.00% refund
  • 2028: 21.33% refund
  • 2029: 10.67% refund
  • 2030+: No refund

No refund is available for space heating (rumvarme) or hot water consumption. Quota-covered businesses still receive 100% CO₂ refund for process consumption but only 18% refund on own-produced heat.

Emissions Tax (Emissionsafgift) — Quota Sectors

A new Emissionsafgift (CO₂e emission tax) for EU ETS quota-covered sectors applies from 2025 under the Emissionsafgiftsloven (Law No. 619/2024). Rates per ton CO₂e:

  • 2025: 71.2 kr/ton
  • 2026: 128.1 kr/ton
  • 2027: 185.0 kr/ton
  • 2028: 241.9 kr/ton
  • 2029: 298.9 kr/ton
  • 2030: 355.8 kr/ton (2015-level, indexed to net price index)

Registration is required within 14 days of receiving an emission permit from the Danish Energy Agency. Businesses with a permit as of 1 January 2025 must register by 14 January 2025. Returns are filed and paid via SKAT's customs and excise portal.

Reduced Rate for Mineralogical Processes

Cement, metallurgical, chemical reduction, and electrolysis processes benefit from a reduced emissions tax rate:

  • 2025: 94.9 kr/ton
  • 2026: 99.6 kr/ton
  • 2027: 104.4 kr/ton
  • 2028: 109.1 kr/ton
  • 2029: 113.9 kr/ton
  • 2030: 118.6 kr/ton

This reduced rate applies only to process-related emissions (heating that causes chemical or physical transformation), not energy-related emissions.

Energy Tax Changes

The Green Tax Reform also restructured energy taxes significantly from 2025:

  • Electricity tax: Reduced from 0.761 kr/kWh (2024) to 0.72 kr/kWh (2025) and further to 0.008 kr/kWh (2026) — a dramatic 99% reduction for businesses.
  • Gas and diesel oil: 1.254 kr/l (2026), 100% refund available for process consumption.
  • Natural gas: 1.383 kr/Nm³ (2026), 100% refund for process consumption.
  • Coal: 34.9 kr/GJ (2026), 100% refund for process consumption.

Non-quota businesses receive 100% energy tax refund on process consumption (2026). Quota-covered businesses receive partial refunds depending on energy type. No refund on space heating/hot water.

Agricultural CO₂ Tax (Green Tripartite Agreement 2024)

Denmark is the first country in the world to introduce a carbon tax on agricultural emissions. The 2024 Green Tripartite Agreement extends carbon pricing to non-energy emissions in agriculture, including livestock. Key features:

  • Low initial rates: The agricultural CO₂ tax starts at a low level with large deductions to allow farms to avoid paying when using existing abatement technologies.
  • Phase-in: Gradual implementation with review points to reflect technology developments.
  • Exemptions: The fishing industry is exempt until 2029. International transport is fully exempt.
  • Other agri-environmental taxes: Pesticide tax (evaluated annually), PVC/phthalate tax, and water tax remain in place.

Other Green Taxes

  • Pesticide tax (pesticidafgift): Based on the pesticide's environmental impact load (belastningsgrad). Rates vary by product type.
  • PVC and phthalate tax: Applied to PVC products and phthalates at specific rates per kg.
  • Water tax (vandafgift): ~6.37 kr/m³ on water consumption (includes wastewater).
  • Waste tax (affaldsafgift): Applied to waste sent to landfill or incineration.
  • NOₓ tax: Applied to NOₓ emissions from large combustion plants.

For more on excise duties including energy and CO₂ taxes from a compliance perspective, see our Excise Duties Guide →.

Compliance and Registration

Businesses subject to these green taxes must register with SKAT's customs and excise division. Key obligations:

  • CO₂ tax: Filed together with energy tax declarations. Monthly or quarterly depending on volume.
  • Emissions tax: Requires a valid emission permit and a SKAT-approved monitoring plan. Monthly filing and payment.
  • Refunds: Claimed through SKAT's excise refund system. Must be supported by consumption records and production documentation.
  • Annual changes: Rates and refund percentages change every year. Update your calculation models at the start of each year.

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