Country:Denmark
Year:
Policy status:Unknown
Date Amended:

2014

Policy Type:Voluntary Approaches, Policy Support
Policy Target:Multi-Sectoral Policy
Description:

Within the framework of the Green Tax Package 1995, enterprises with specific energy-intensive activities, or with energy tax exceeding 3% of value added, can reduce their tax rate through a voluntary energy savings agreement. The enterprise must first present an energy audit prepared by an independent certified consultant and an action plan based on the audit, which demonstrates how the enterprise will implement a system of energy management, apply procurement policies favouring energy efficiency and educate staff in energy efficiency. The audit may be disputed and reviewed, or the enterprise may propose alternative measures to achieve equivalent CO2 results. The enterprise must commit to implementing the energy efficiency investments recommended by the audit with payback times of up to four years. On the basis of the action plan, the enterprise signs a three-year agreement with the government and is guaranteed partial reimbursement of carbon tax rates conditional on the fulfilment of the obligations in the action plan. By 2001, more than 300 enterprises accounting for about 60% of total energy consumption by industry (VAT-registered companies) had concluded an agreement with the Danish Energy Agency. The tax, subsidy and voluntary agreements package was evaluated in 2000. The conclusion was that reductions of CO2 had met forecasts. In 1995 it was estimated that the package would reduce emissions by 3.9% versus an actual reduction of 3.8%. Sulphur reductions were better than expected (34 000 tonnes versus 32 000 tonnes anticipated). The evaluation resulted in the following assessments: - The green taxation system for agriculture, trade and industry is an appropriate instrument for attaining the environmental objective, is economically effective and takes international competitiveness into account. - The administrative costs related to the voluntary agreement scheme are too high. - The voluntary agreements were consequently adjusted in 1999 by replacing the mandatory audits with a requirement to implement an independently certified energy management system. The certifying body controls compliance with the agreement, thus reducing administrative costs.

25 Energy Efficiency Recommendations Applied:Cross-sectoral

Last modified: Tue, 25 Nov 2014 14:17:11 CET