1. Green taxes in Denmark Tax on Sulphur Christian Lange Fogh, Ph.D.
Industry
Danish EPA
CLF, IDA 14/1 2002

2. Content Green taxes in general The Sulphur tax Tax on NOx ?
General principles
Administration
Effect
Unwanted side effects
Tax on NOx ?

3. General principles
Tax on all fuels (oil, coke, wood, lignite, etc.) with more than 500 ppm sulphur
The tax is 2,7 € per kg of Sulphur in all fuels
E.g. 27 € per tonnes of fuel oil with 1 % sulphur content
If emissions are monitored you can apply to pay can pay 1,35 € per kg of SO2 emission instead
Was introduced 1st of January 1997

4. Administration
There have been no significant problems in administrating the tax
Directive 1999/32 is in fact enforced by the ministry of taxation, including control measures

5. Effect National emissions have declined drastically
No heating oil is sold with a sulphur content above 500 ppm
The power plants have achieved cleaning efficiencies above 99 %

6. Effects – national sulphur emission

7. Effects – single power plant

8. Side effects There is a domestic sale of 8.000 tonnes of pet-coke
There is an estimated import of about tonnes of pet-coke from Germany (on private trailers)
Sulphur content of the pet-coke is 1,3 %
There is a sulphur tax saving of ~ 36 € per tonnes
There is also an energy tax saving

9. Tax on NOx ?
Based on the positive experience with the SO2 tax the government is now considering a NOx tax
Level would be 1-3 € per kg of NOx emitted
NOx tax is less simple as NOx emissions aren’t a simple function of the fuel