Denmark

Major Developments in 2020

In 2020, sales of BEVs and PHEVs increased significantly from previous years, reaching a 16.4% share of total new passenger cars registrations. This is significantly greater than the highest previous growth rate, from 2014 to 2015. The 3 best-selling BEV brands were Tesla, Volkswagen, and Hyundai. They hold markets shares of 33%, 19% and 10% respectively.

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

The Danish Climate Act and national Climate Action Plan set sub-targets in 2025 to meet a 70% reduction in 2030 on the way to 100% climate neutrality in 2050. In December 2020, a majority in parliament agreed on which major climate steps to take in the transport sector. The parties agreed to aim for 1 million ZEV on Danish roads by 2030. With the agreement, car taxes are set to be reorganised and based more on the car's value and CO2 emissions. Toll on heavy trucks will be kilometer-based and CO2-differentiated. Taxes on green cars will be eased and electricity tax for charging electric and hybrid cars will be low until and including 2030. As a new instrument, green sharing economy tax reductions are doubled for private rental out of electric and plug-in hybrid cars. The agreement is funded by 336 M€ and with a range of concrete measures. Impact is expected to contribute to a stock of 775,000 new zero- and low-emission cars in 2030. Further initiatives will be needed, but overall, the agreement is set to reduce greenhouse gas by 1 mill. tons in 2025 and 2.1 mill. tons in 2030.

Outlook

The Danish Climate Act and national Climate Action Plan, have specific measures to ensure the first sub-targets in 2025 and a 70% reduction in 2030 will be met. This will be an immense task for all Danish sectors, including the transport sector which has increased emissions since 1990. The transformation must happen within a decade and is probably the world most ambitious national target.
As a Danish-Dutch initiative, nine EU Member States sent a joint message to the European Commission for an accelerated transition to zero-emission vehicles, including a phase-out date for sale of new petrol and diesel cars in the EU. To accelerate green transition, Denmark will establish the world’s first offshore energy hubs and associated windfarms. One as an artificial island in the North Sea and one at the Danish island Bornholm. Their 5 GW capacity (expanded later to 12 GW) triples current installed offshore DK capacity. The energy hubs collect electricity from surrounding offshore windfarms and distribute electricity between countries connected via the power grid. Furthermore, offshore wind energy can be used to produce green fuels for heavy-duty and long-range shipping and aviation.