Mobility Basic Figures

According to a marked survey of the EU funded Project ALTERMOTIVE Denmark has together with Norway the highest registration tax on sales of new cars. Therefore, the Danish population has relatively few cars – around 33% less per inhabitant compared with Sweden and Germany. It also means that the cars are smaller than in neighbouring countries and therefore also more energy efficient. A Nordic study from 2008 described that new cars in Denmark and Norway since 1998 show a lower CO2-emission compared to Sweden and Finland.

The share of alternative fuels in passenger transport in Denmark is currently very low. While the consumption of diesel has been growing strongly in Denmark since 2002, there have been only very few experiments with energy from first generation biofuels. In May 2006, the Danish section of the fuel company Statoil introduced Bio 95, which is gasoline added 5 percent bioethanol. The product corresponds to the European gasoline standard, EN 228, which allows a mixture of bioethanol up to 5 %. The Bio 95 product is based on Brazilian sugarcanes. Cars capable of running on unleaded gasoline is capable of running Bio 95. However, Bio 95 is only available to the Danish consumers at the Statoil service stations. After the adoption in the EU of the 5.75% demand for biofuels in cars from 2010, Denmark notified to the Commission that the Danish goal was 0% - because Denmark already used a large share of biomass in its heat- and cogeneration production.

However, in 2008 the government decided that the 5.75% goal for first generation biofuels would be implemented from 2010. In 2006 the Danish Government decided to significantly boost efforts to promote the use of second-generation biofuel technologies by allocating additional financial sources for the co-financing of large-scale private development programmes. Altogether, these additional private and public development interventions are expected to total significantly more than DKK 200 million. The Danish Government has earmarked DKK 60 million in the period 2007-09 for the use of biofuels in restricted fleets of vehicles. However, the production is still very small – and the biofuels produced is mostly exported to Germany and Sweden. Therefore, the consumption of biofuels is so little in Denmark that it is statistically irrelevant.

In terms of car stock and newly registered cars, which runs on biofuels and electricity, the numbers are very small. Despite data for electro vehicles there is no statistic yet on the biofuels car stock, which is close to zero. According to finding within the EU funded project BEST there were sold 82 flexifuel E85 cars in 2008 but until April 2009 no pumps for this fuels were in operation (buyers travelling to Sweden for fuelling). According to findings of the EU funded COMPRO project the city of Copenhagen and Aarhus using buses running with CNG in public transport. The stock of electro vehicles was about 253 unitits (October 2009). Following the Bilbranchen association it is expected that the market share of electro cars could increaste to 2 – 5% until 2012, 5-8% until 2015 and 10-15% zntil 2020 (the actual stock of cars is about 2.1 vehicles).

As a consequence of an energy political agreement between the Danish government and the opposition in the Danish Parliament, electric cars and hydrogen cars are - until 2012 - free of duty in Denmark. The plans are to increase the number of electric vehicles from the current 200 to 100,000 within two years. There is a kind of Danish tradition supporting and establishing an innovative e-mobility concept within the past 25 years; according to ALTERMOTIVE country review the following most important concept can be listed:

1. “Ellert” - Mini- El City: The so called “Ellert” is a electric one-man vehicle. The motor is a D.C. motor on 750 W. All combined the lead batteries offer a voltage of 36 Volt. The Ellert entails an inbuilt charger. The prototype was developed by the engineer, Steen V. Jensen with financial support from some of the Danish ministries. The project was financed by almost 3,000 investors and was introduced to the Danish market in 1987. In 1987 the first technical defaults showed up and the construction of “Ellert” was changed several times. This had a fatal impact on the company, which was soon adjudged bankrupt. In May1989, new investors revitalised the company and a new company was started, named El Trans 89 A/S. The new company focused on improving the technique of the electric car and the “Ellert” was renamed “Mini-El City.” A production to Austria and Germany was started. In the autumn of 1995, the production was moved to Germany. The private initiative, the Ellert in fact had an impact on the number of electric cars registered in Denmark. Within a few years, this electric vehicle – with all together 5,000 copies – did in fact become the most selling electric vehicle in the world.
2. Kewet: In 1988 Knud Erik Westergaard launched the development of a Danish electric car Kewet EL Jet. Kewet El Jet 5 is a two-seated car, which was originally developed as an electric car. Model 5 is equipped with lead batteries. The top speed is app. 80 kilometres an hour and its reach is 50 – 75 kilometres. Impuilt is a charger. The first Kewet EL jet was sold in Denmark. However, the car gained great publicity abroad. In 1992 and 1993, it was approved by officials in all European countries and in a number of countries from outside of Europe. In 1995 a rather more industrialised production was started up in Nordhausen – in former Eastern Germany, where great opportunities to gain subsidies to start up the company were given. However problems with receiving the subsidies meant that the company was declared bankrupt in 1998
3. Better Place Denmark: DONG Energy A/S and Project Better Place currently install an electric car network that includes about 20,000 recharging stations in the Scandinavian nation mainly in Denmark (investment volume of about 100 million EUR). The grid, expected to be ready by 2011, using excess power from DONG Energy's wind turbines. A fleet of battery-driven electrical vehicles will be introduced in Denmark after the recharging stations are built at parking lots and outside homes. French car maker Renault will provide the vehicles and Japan's Nissan will make the lithium-ion batteries under a partnership with Project Better Place. The battery will allow a car to drive a maximum of 150 km/h. However, the wider success of the project will depend on whether a European standardisation of the components will succeed. Such a standard is under negotiation and is expected to be adopted in about two years.
4. Plug-in hybrids - BYD etc.: The greatest competitor to Better Place, is expected to be the Chinese plug-in hybrid BYD which was first planned to hit the Danish market in spring 2009 – however, it has now been delayed. BYD is based on a different technology than Better place. In this concept the car obtains its original battery – a battery which is, however, loaded in only few minutes where after the electric motor holds a range of app. 100 kilometres. The BYD was marketed in China from December 2008 and is expected to join the markets in Europe and the US in 2010. The company has claimed that it will give a priority to the Danish market, because of the great interest of electric cars in Denmark. Other car companies are expected to introduce plug-in hybrids in 2010 or 2011.

One of the most important projects world wide promoting electro mobility started in 2009 and will end in 2012 is Edison (Edison = Electric vehicles in an Distributed am Integrated market using Sustainable energy an Open Networks). The project is partly financed by the Danish government and focuses on the cooperation of public and private research organisations, international companies and local authorities to create an intelligent infrastructure to fuel a large fleet of electro vehicles on electric energy created by wind parks. The developed technical solutions are real-life tested on the island of Bornholm. Further project details can be found under www.edison-net.dk.

The so-called Hydrogen Link network was established in 2005 by Nordic Transportpolitical Network. A Phase 1 of the project from March to October 2005 analyzed the possibilities for the building of a number of hydrogen filling stations in Jutland and how these could be connected with the hydrogen filling station network in Norway, Sweden and Northern Germany. The result of the analysis was the identification of 8 possible locations for hydrogen demonstration filling stations in Jutland. Phase 1 also created contact to more than 100 companies and organizations in Denmark and the surrounding countries.

Hydrogen Link today is working towards becoming a national network for research, development & demonstration of hydrogen & fuel cell technologies for transportation with the purpose of advancing a Danish infrastructure of hydrogen filling stations and a widespread use of fuel cell vehicles, beginning with niche transportation and in long term road transportation. It is the aim for Hydrogen Link to be structured beneath the Danish Energy Authority's Hydrogen & Fuel Cell Platform as the main activity within transportation. Hydrogen Link is part of the Scandinavian Hydrogen Highway Partnership, SHHP. SHHP is a Scandinavian co-operation that consists of the three national hydrogen infrastructure networks in Norway (HyNor), Sweden (Hyfuture) and Denmark (Hydrogen Link). SHHP it to gather and align the networks in the three countries in a joint Scandinavian application for an EU Lighthouse demonstration project for hydrogen transport around 2010.

The geo-information system European Environmental Atlas from the EEA lists 14 LPG refuelling stations, no biogas (also verified by other sources), no biodiesel refuelling stations and no flexifuel E85 refuelling stations for road vehicles in Denmark. In the report of the European Expert Group for Future Transport Fuels from January 2011 Denmark is presented as negative example how the absence of refuelling possibilities in a particular European country will present a major problem for the transit traffic. Denmark, without a single methane refuelling station, is thus a barrier for methane vehicles travelling between Germany and Sweden, both strongly expanding natural gas and biomethane use as transport fuel.

The geo-information system “Hydrogen Filling Stations Worldwide” list about 10 hydrogen refuelling stations for road vehicles (for filling trucks) mostly located on the west coast/Jutland. The stations are mostly related to the “Hydrogen Link Denmark” project. The company Better Place plans to develop a nationwide infrastructure for electric vehicle with up to 20,000 service/charging points all over the country, i.e. for the Copenhagen area there are planned 50 of these service/charging points.

The following description is made mainly on basis of a country report provided within the EU funded ALTERMOTIVE project.

Fiscal Instruments

Until 2007 the Danish registration tax was solely based on the price of the car (paid as a one-off payment related to the purchase of a car). Denmark has through changes of the registration tax and the car owners tax tried to influence the drivers to buy cars which are energy efficient – with low CO2 emission. From 2000 the registration tax was reduced for the most fuel efficient cars. But this only applied to very few energy efficient cars – especially the VW Lupo. For all other cars differentiation according to fuel consumption/CO2 was not introduced until 2007. In 2007, tax changes were adopted so that part of the registration tax was based on the fuel consumption, meaning that smaller and more energy efficient cars turned out cheaper while the heavier and less energy efficient cars (e.g. four-wheels driving cars) were heavily taxed (in average Denmark has the highest car registration tax world wide). This had an immediate effect i.e. the Danish car buyers, to a greater extent than in the recent past, bought smaller and less energy-consuming cars. Also the taxes were changed in order to reduce the emission of particles. Particle filters were exempted from tax in 2007, but this was not enough to make all car importers equip their new cars with filter. In March 2009, the tax on diesel cars with filter was further reduced. Electric cars have a quasi exemption from the registration tax.

In Denmark, car owners pay a registration tax plus 25% of the value of the car in VAT. VAT is also added to the price of gasoline and diesel. VAT from gasoline and diesel amounts to 0,6 billion EUR.

Weight tax/green owner tax. In 1997 the weight tax for newly registered passenger cars was changed into a “green owner tax”, which is differentiated in accordance with the fuel efficiency of the car. For cars registered before that date road tax system remains in force. The owners tax for a car with high fuel consumption is therefore at present 35 times as expensive as the most fuel efficient car. For gasoline vehicles that run more than 20 km per litre the owner tax is about 35 EUR (half year) and for diesel vehicles that run more than 28.1 km per litre about 50 EUR (half year).

For cars registered before that date road tax system remains in force. The owners tax for a car with high fuel consumption is therefore at present 35 times as expensive as the most fuel efficient car. Electro vehicles are exempted from green owner tax.

In mid 2009 the Danish Tax Authority (Folketing) has adapted Bill L205 on green transformation of car taxation, which means changes in the law on charging for fuel for some cars (ACT law). According to this the following tax measures were undertaken:

1. Introduction of an annual allowance of 1,000 kr for diesel cars and vans that are either not complying with EU standards on emissions of more than 5 mg of particles per kilometres or where there are aftermarket particulate filter that effectively reduces engine emissions of particulates.
2. For new vans not exceeding 3.500 kg which are taxed currently with the regular levy based on vehicle weight they will be taxed on basis of fuel consumption similar to the rules that apply to passenger cars. Recovery shall be only with effect from 1st January 2010. Between 18th March 2009 to 31 December 2009 paid ACT. Vans, which were purchased newly before 18 March 2009, but registered after 18 March 2009 may now taxed under ACT law.
3. The fee for taxis changed so that future tax is 0 per cent up to 230,000 of the taxable value, and then 70 per cent. For used taxis reducible tax is similar as the one for cars in general. That tax and the addition / deduction written down in relation to the car's depreciation, calculated from the difference between market price and original new price.
4. Ambulance vehicles and limousines diesel-powered patient transport vehicles and limousines must also pay a particle emission allowances, if the vehicle has a particulate filter. Registration fee for ambulance vehicles and limousines are unchanged at 20% of the taxable value of 12.100 kr. For used ambulance vehicles and limousines are written down duty in relation to the car's depreciation, calculated from the difference between market price and original new price.

With effect from 1 January 2005 the Danish Government exempted biofuels from the CO2 tax imposed on the use of ordinary petrol and diesel for transport. Anyhow, until 2009 biofuels in fact have been more heavily taxed, as the tax was based on volume, and biofuels deliver less energy per litre than gasoline and diesel. But in a tax agreement between the government and its supporting party in March 2009 the tax was changed to a tax per energy unit.

Funding

In Denmark, electric vehicles have been exempted from registration tax and car owners tax until 2012 – extension of this period is under discussion. Tax exemption for hydrogen cars and plug–in hybrid cars are being debated. In accordance with an agreement, entered between the Danish government and the opposition in parliament in February 2008, the appropriation for a pilot scheme for subsidies on electric cars is 1.34 m EUR yearly in 2008 – 2009. It is decided that the appropriation will be 5 m in the following years (2010 – 2012).

In Denmark there is a scrap premium when returning a car/van which has been registered in Denmark after 1st July 2000. For cars that are unsubscribed after 1st July 2002 the scrap allowance of kr.1,750 for cars deregistered in the period 1st July 2000 to 30th June 2002 scrap allowance is kr.1,500.

Under the Energy Policy Act of the 21st February 2008 a grant scheme for experiments with electric cars have been agreed. The grant scheme for experiments with electric cars runs by the DEA (Dansih Energy Agency).

Since 2008 there is a funding programme with a budged of about 35 mill dkr (4.7 mill EUR) supporting pilot projects for he use of electro vehicles on municipal level and in the privet economy. The financing of selected projects is until 2012. In the first call the project authority Energistyrelsen has granted about 10.4 mill dkr to about 17 different projects. The majority of those projects comprises the purchase of electro vehicles (about 44 vehicles are purchased within the project framework) as well as the installation of recharging infrastructure (according to the funding conditions until a max. amount of funding two-third of the investment cost can be funded).

Regulative Measures

Denmark has introduced a fuel economy label, which shows the car's fuel and energy category based on a colored scale. The colours range from GREEN for cars with the lowest CO2 emissions through the colours of the spectrum to RED for the most highly polluting vehicles. The fuel economy label is i.e. used for calculating the vehicle tax and for defining awarded criteria for public procurement. It is also used for defining driving permissions and bans within Low Emission Zones.

The Danish Government has decided that the proportion of biofuel for transport which complies with the EU sustainability criteria will be increased to 5.75% of total sales of petrol and diesel for transport on Danish territory calculated on energy content as from 1 January 2010. To reach this target, all filling stations selling petrol and diesel for transport will receive directions demanding them to sell at least 5.75% as from 1 January 2010.

In Denmark several cities have introduced Low Emission Zones (Miljøzone) for Heavy Duty vehicles (buses and lorries) over 3.5 tons applied 24 hours a day, 365 days a year. From 1 July 2010 all of these vehicles must have Euro 4 standard or have a certified particulate filter otherwise there are banned for accessing the LEZ area. Danish vehicles need to have an LEZ sticker in the windscreen. Foreign vehicles need to carry the information stated below to prove they meet the emissions standards. The particle filter must reduce the exhaust of particles by at least 80%, calculated according to the applicable EU methods.

A multi-criteria analysis of PricewaterhouseCoopers, Significant and Ecofys from January 2009 for the years 2007/08 shows that 42% of all public procurement volume in Denmark can be considered as green. In the transport sector (vehicle purchase) the average level of green procurement on the total procurement value (indicator 1) was calculated with about 10% but the share of single contracts comprising green criteria on the overall number of contracts (indicator 2) was about 25%.

The Danish public procurement regulations (Cirkulære om udbud og udlicitering af statslige drifts- og anlægsopgaver) defines in §13 2. and §14 2. the obligation to include environmental criteria in the specification of supplies as well as for the selection of the supplier. Specific regulation for the purchase of vehicle does not exist. The Danish government and the Danish local authorities have agreed upon political guidelines, which ask municipalities to purchase green. In 2001 the implementation of this agreement will be reviewed and it is planned to turn the guidelines into binding laws, should there be insufficient voluntary compliance among local administrations. In principle, the Environmental Protection Agency (EPA) and Energy Agency is responsible for green purchase. The Danish EPA has published approximately 50 product-specific guidelines since December 1996, giving advice on which environmental questions to ask and which requirements to set when purchasing a particular product or service. The guidelines, which are purely voluntary, cover areas ranging from transport to textiles and are accompanied by background material in separate publications. The guidelines are currently being updated and turned into an internet based tool.

Most of the public procurement of central governmental as well as regional/local institutions is realised by using a central National Procurement Ltd (SKI). SKI is a public shopping centre, which took its present form in 1994, when the State Purchasing was merged with Local Product Dissemination. Both institutions filled out basically the same purpose: to use the procurement budget as a lever to secure volume discounts on the most ordinary goods and services to the public. SKI offers contract frameworks which aims to allow providers and public purchasers acting together in a way that benefits both parties. SKI is a limited company owned by the state (55 per cent of the shares) and the Local Government Denmark (45 per cent.). Their income is based on a share of the turnover of the framework contracts on average less than one percent. However, SKI is a non-profit corporation. When SKI offers a Framework Agreement on cars, they asked for a series of environmental requirements which the principal went on vehicle CO2 emissions, i.e. car's contribution to climate effects. All requirements have been set in dialogue with a reference group composed of users of the agreement including the Ministry of Environment. SKI `s new Framework Agreement on cars bring environmental requirements in front along with requirements for safety and reasonable economy. The agreement set out four categories of vehicles, covering the need for transportation in the city and in terrain. The supply established the following requirements for CO2 emissions and safety:

• Category 1 for passenger cars. Max. CO2 emissions of 140 grams per kilometre, which is equivalent to Euro 4. Minimum four stars in Euro NCAP;

• Category 2 less goods and truck and smaller four-wheel drive cars. Max. CO2 emissions of 190 grams per kilometres;

• Category 3 disabled cars. No upper limit for CO2 emissions;

• Category 4 cars for representative purposes. No upper limit for CO2 emissions.

It was also called for a broad range that diesel cars with factory fitted particle filter. Based on the reference group participants' needs, the just completed tender won by Fiat, Hyundai, Kia, Peugeot, Suzuki and Volkswagen, which therefore will provide environmentally friendly service cars for the state, municipalities, regions and parastatal companies. All cars have also undergone a so-called car-crash test, which are obtained at least four stars by the independent organization "Euro NCAP Crash Test." SKI expects that customers will continue to buy into the 300 million dollar cars a year by SKI.

Apart from the green joint procurement carried out by SKI there are several further examples for Denmark:

• In 1996, seven of the partners (Athens and Amaroussion, Greece; Copenhagen, Denmark; Coventry and the London Boroughs of Camden, Southwark and Sutton, UK; Palermo, Italy, Stockholm and Sweden) in the EU funded ZEUS project decided to form a procurement consortium in order to jointly procure electric vehicles. The aim was to purchase one passenger car and one transporter and to introduce electric vehicles. In June 1997, 9 tenders were received, whereof 4 were from France. Several tenders had restrictions and could not fulfil all the requirements. In the end 2 passenger cars were selected (Fiat 600 Elettra, Peugeot 106 Electric (UK only)) and one van (Citroën Berlingo Electric). In total, the consortium bought 278 vehicles. Prices were reduced by 25-50 %. Maintenance and spare part service filled the requirements, and there was an option for third party to buy more than 150 vehicles.

• The municipal of the city Kolding sometimes calls for tenders jointly with its neighbour municipalities. In these cases, Kolding’s environmental department is responsible for the consideration of environmental aspects.

Produktblad for miljørigtige offentlige indkøb (GPP)

Nature and environment in balance – today and in the future

Denmark Altermotive project - Data from Denmark, collected by the Danish Ecological Council

ORGANISATIONEN’s retningslinier for klima og sikkerhed ved indkøb af køretøjer

Udvikling i nye danske personbilers CO2 udledning og energi-forbrug årgang 2005

aktaark om biler

Change of registration act

Subsidy of electricity vehicles

LEZ Road sign