Denmark to increase road tax on diesel HGVs to reduce greenhouse gas emissions

Denmark to increase road tax on diesel HGVs to reduce greenhouse gas emissions

trans.info — 2023-04-03

Land transportation

Under a newly approved political agreement between the Danish government and left-wing parties, Danish hauliers will face increased costs for running petrol or diesel-powered HGVs on certain Danish roads starting in 2025. By 2030, these costs will extend to all public roads within the Danish road network.

The agreement aims to reduce greenhouse gas emissions by 70% by 2030.

From 2025 January 1, HGVs will pay a mileage-based road tax based on their CO2 emissions, with green vehicles paying the lowest tax.

The tax for conventional lorries, such as those running on petrol or diesel, will be about DKK1.3 per kilometre in 2030. In contrast, zero-emission trucks, such as electric HGVs, will pay about an extra DKK0.2 per kilometre.

The tax will apply to HGVs weighing 12 tons or more from 2025, expanding to include smaller trucks from 2027, and it will cover the entire public road network from 2028.

Speaking to local news channel Dr.dk, Karsten Lauritzen, Director of the DI Transport industry association criticizes the new road tax, stating that it is not an initiative to save the climate, but rather an exercise to generate revenue for the state.

He adds that it will ultimately affect Denmark’s competitiveness and jobs, as companies will only have the option to pass on the bill to consumers.

According to him, only 1% of HGVs in Denmark run on green fuels, and the infrastructure for electric charging stations is not yet in place. He also points out that the effect of reducing 0.4m tonnes of CO2 by 2030 is not significant, but the industry will be hit hard.