Denmark - Policies and Legislation

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In August 2007, the Danish Energy Agency published an alternative-fuels report for the transportation sector. One of the report’s conclusions states that in the long term, EVs have the potential for both the highest energy efficiency and important advantages for the local environment, such as no local emissions and a very low noise level. The report was expected to be updated in 2011.

Additionally, in April 2010, the Danish Energy Agency released an Electricity and EV report  on interplay between EVs and the electricity system. The analyses covered relations to transmission, distribution, and CO2 reduction.

The Danish EV promotion program began In February 2008 when almost all political parties in the Danish Parliament entered into a new Climate and Energy Agreement. As part of this agreement, the parties agreed to allocate 30 million DKK (€4 million) to promote demonstration programs for battery EVs. The program is being administered by the Danish Energy Agency.

In April 2009, the Danish Transport Authority established the Centre for Green Transport to create the framework for a Danish center in the field of sustainable transport and to manage these initiatives. Projects conducted by the Centre include a transport certification program for municipalities and companies, an energy-efficient driving campaign, and energy labeling of light commercial vehicles. DDK 200 million (€28 million) has been allocated specifically for demonstration projects between 2010 and 2013 that promote environmentally aware and energy-efficient transport solutions, including test projects with alternative types of fuels, electric cars, electric buses, and electric trucks.

In March 2009 the EDISON project for EVs and PHEVs began. The EDISON project is an international research venture partly publicly-funded through the research program FORSKEL, administered by the Danish transmission system operator The total budget is approximately 49 million DKK (€6.5 million), 33 million DKK of which come from FORSKEL. The consortium behind the project consists of IBM, Siemens, DTU/Risø, DONG Energy, Eurisco, Østkraft, and Dansk Energi.

The project objectives are to develop system solutions and technologies for EVs and PHEVs. The project connects research institutions and major industry enterprises to cover all three stages: research through concept and technology development to demonstration.


Battery EVs and fuel cell vehicles are exempted from the registration tax and annual tax until the end of 2015. EVs are also exempted from the current Danish registration tax for passenger cars, which is very high (180%) and is based on the value of the car. Locally, there is free parking for EVs in cities. Currently, there are no special tax rules for PHEVs.