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Factsheet for measure DK-2021-1/2046 – measures in Denmark

Green Reboot of the Danish Economy

Grøn genstart af den danske økonomi

Country Denmark , applies nationwide
Time period Open ended, started on 01 January 2021
Context COVID-19, Green Transition
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound
Measure added 12 October 2021 (updated 23 March 2022)

Background information

In order to reboot the Danish Economy after COVID-19, the Danish Government has earmarked 55 billion DKK to stimulate the economy and keep Danish jobs, to contribute to a significant reduction in CO2 emissions, and to strengthen the well-being of children, young people, and the elderly.

Content of measure

The government has agreed on 5 elements to constitute the green reboot of Denmark:

  1. Agreement on the payment of remaining two weeks of frozen holiday funds, export package and reserves for the extension of aid packages:

  2. Payment of remaining two weeks of frozen holiday funds: approx. DKK 24 billion after tax. Export package: Approx. DKK 1.7 billion total 2021-2023.

  3. Framework for possible extension of aid packages: DKK 2.3 billion in 2021.

Cases related to the first section:

  • DK-2020-40/1471
  • DK-2020-11/600
  • DK-2020-12/1792
  • DK-2020-11/624
  • [DK-2020-11/707](https://static.eurofound.europa.eu/covid19db/cases/DK-2020-11_707

  • Green conversion of road transport:

  • Boosting the number of zero- and low-emission cars to 775,000 by 2030 and an ambition of 1 million green cars by 2030.

  • Effort to stop the sale of new fossil cars by 2030. New CO2 displacement requirements for renewable fuels.

  • Agreement on the Finance Act 2021:

  • DKK 0.9 billion in total in 2021-2024 for more nature and increased biodiversity.

  • DKK 1.9 billion in total in 2021-2024 for more care and presence in elderly care.
  • DKK 1 billion in total in 2021-2024 to bring forward the phasing-in of minimum standards by one year.
  • DKK 1.7 billion in total in 2021-2024 for lifting to youth education and preparatory basic education (FGU).

  • Agreement on stimuli and green recovery:

  • Almost DKK 3 billion to follow up the climate partnerships' priority recommendations (e.g., grants for phasing out oil and gas boilers, green home improvements, etc.).

  • Support for the experience economy (DKK 750 million in 2021).
  • Conversion efforts for DKK 2 billion.

5.Green tax reform agreement:

  • The first steps towards a higher and more uniform tax payment on CO2 emissions.
  • A group of experts will be set up to draw up proposals for the development of uniform CO2 regulation in the second phase of the tax reform.
  • The green investment window will continue until 2022 and almost DKK 700 million are given in further grants for green investments.
  • The 130% reduction in the R&D deduction will be extended to 2022.

Use of measure

The goal of the agreement is to create more than 14,000 jobs in 2021 and to stimulate a green recovery after COVID-19.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

Unknown involvement.

Views and reactions

Unknown.

Sources

  • 02 December 2020: Regeringen og bredt flertal indgår stimuliaftale på mere end 25 mia. kroner. (fm.dk)
  • 04 December 2020: Grøn vejtransportaftale: massiv CO2-reduktion og ambition om en mio. grønne biler i 2030 (fm.dk)
  • 06 December 2020: Finanslovsaftalen for 2021 bringer Danmark tryggere igennem coronakrisen (fm.dk)
  • 08 December 2020: Bred aftale om grøn skattereform baner vej for grøn omstilling i erhvervslivet (fm.dk)
  • 11 October 2021: Grøn genstart (fm.dk)
  • 11 October 2021: Faktaark; samlet overblik over aftaler om grøn genstart (fm.dk)
  • 11 October 2021: Grøn gemstart: Ny stimulipakke giver jobs i naturen (www.regeringen.dk)

Citation

Eurofound (2021), Green Reboot of the Danish Economy, measure DK-2021-1/2046 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2021-1_2046.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.