Commission approves Danish State aid greenhouse gas tax reduction scheme for companies at risk of carbon leakage

The European Commission has approved, under EU State aid rules, a EUR 724 million (DKK 5.4 billion) Danish scheme to lower the rate of a new greenhouse gas (GHG) emissions tax for certain companies. The measure aims to prevent the risk of carbon leakage, where companies relocate production outside of the EU to countries with less ambitious climate policies, resulting in increased greenhouse gas emissions globally. The scheme will run until 31 December 2033.