Denmark

Major Developments in 2022

In 2022, the number of battery electric passenger cars skyrocketed, passing a total amount of 100,000, with a growth rate of 69%. The expansion of the EV charging infrastructure took a significant leap as the total amount of Ultrafast-High power chargers (≥ 150kW) more than tripled from 243 in 2021 to 784 in 2022. BEVs accounted for 20% of new passenger car registrations. The BEV share of new car sales reflected BEVs as the preferred alternative to internal combustion engine cars. BEVs overtook HEVs and PHEVs in both new registrations and total stock. PHEV registrations were equivalent to about 18% of registrations, in 2022. Electric buses accounted for 60% of new registrations in 2022, taking a majority share of new registrations. In comparison, the share of electric buses, in 2021, corresponded to 35% of the registrations.

New policies, legislation, incentives, funding, research, and taxation

Moving towards 2030, the tax policies will gradually relieve incentives favoring EVs and PHEVs, as they become more mainstream. PHEVs have been criticized for their real-world electricity share being lower than advertised. The tax exemption rate for PHEVs decreased in 2022, meaning that the price of a medium class PHEV of around €47,000 increased by approximately €2,000, compared to 2021. For BEVs, only cars with costs higher than €63,000 were affected by adjustments to the conditions compared to 2021—and to a relatively more limited extent. In 2022, the Danish parliament modified the taxation of electric and plug-in hybrid company cars. The new rules will be active from 2023 up until 2026.

Outlook

Denmark is currently working towards a 70% economy-wide reduction of GHG emissions by 2030, compared to 1990-levels. The transport sector is one of the largest sectors in terms of greenhouse gasses, with private road cars being responsible for the majority of the emissions. Therefore, the whole sector is required to reduce the emissions levels significantly in the lead up to 2030. Looking forward towards 2030 and 2035, EVs are considered the dominant alternative to ICE drivetrains. The development of hydrogen-related fuels and drivetrains may well play a role, especially within freight and heavy-duty transport. But the continued development is yet to determine which technologies will dominate as alternatives to ICE drivetrains within and across the various segments of road transport.