The 2020 Danish Climate Act outlined a goal to make Denmark a climate-neutral society by 2050 at the latest, considering the Paris Agreement’s goal of limiting global warming to 1.5°C. In December 2022, the new Danish government announced its plans to move forward its net zero target to 2045, though this new goal has not yet been enshrined in law.

The 2020 Climate Act outlined the country’s 70% GHG emissions reduction goal for 2030 compared to 1990 levels and established the goal of making Denmark a climate-neutral society by 2050 at the latest, considering the Paris Agreement’s goal of limiting global warming to 1.5°C.

Denmark does not currently have a 2040 target enshrined in its law. However, the Climate Act specifies that “[a]t least once every five years, the Minister for Climate, Energy and Utilities must set a national climate target with a 10-year perspective. A new climate target must not be less ambitious than the most recently set target.” Thus, a 2035 target is expected to be set in 2025.

Denmark also has national targets for 2030 for sectors covered by the EU Effort Sharing Regulation and LULUCF Regulation.

Under the European Climate Law, the EU as a whole must reduce its emissions by 55% by 2030. This commitment is reflected in the EU’s Nationally Determined Contribution to the Paris Agreement.

The 2020 Climate Act does not enshrine distinct targets for gross emissions and removals in Danish law.

Scenarios by the Danish Energy Agency examine CDR’s potential role in Denmark in 2050. These scenarios project that BECCS, DACCS, biochar and forest sinks could contribute to the generation of negative emissions of up to 13 MtCO2e in 2050.

The Danish Climate Programme 2022 estimates specific technical and area-based "reduction” potentials for biochar, BECCS supported by the NECCS fund (see section 18. Deployment incentives), afforestation and DACCS, though it is not clear how much of this reduction potential is enabled by CDR.

Given the political indication that Denmark will set a target of 110% emissions reduction by 2050 (see section 5. Net negative target), this would establish an implicit target of at least 10% of baseline emissions being delivered as additional CDR, beyond what is needed for net zero – even if the role of CDR in reaching net zero in 2045 is not explicitly quantified.

The Agreement on the Finance Act for 2022 agrees to establish “a technology-neutral pool”, which is worth DKK 2.6 billion (EUR 350 million) and is expected to deliver annual removals of 0.5 MtCO2 for the 2025- 2032 period.

Denmark has a legally binding LULUCF target for 2030 through the EU LULUCF Regulation to deliver an additional net removal capacity of 441 ktCO₂ by 2030. Achieving this target would bring Denmark’s total LULUCF CDR target for 2030 to 5.4 Mt/year.

The 2020 Climate Act does not enshrine distinct targets for LULUCF removals and permanent removals in Danish law.

Denmark’s NECP estimates that the country has the potential to capture 1-10 MtCO₂ per annum from biogenic sources by 2030, while the Danish Energy Agency estimates 3.5-6 MtCO₂ by 2040. This data on biogenic capture opportunities could feed into the setting of nested targets for permanent removals in the future, if complemented with data on atmospheric and ocean capture.

The Danish Climate Programme 2022 estimates a CDR potential of 3.6-5.6 MtCO₂ from biochar from the pyrolysis of materials, including manures or straws.

At the EU level, the latest version of the European Climate Law states that the EU as a whole shall reach climate neutrality by 2050 and shall aim for net negative emissions thereafter, establishing the legal basis to introduce a quantified net negative target in the future.

Alongside its proposal for a 2045 net zero target, the new Danish government has outlined its intention to set an emissions reduction target of 110% (net negative) by 2050 compared to 1990 levels. The Climate Act would need to be amended to provide a legal basis for the new targets. No dedicated proposal has yet been put forward.

Biomass sustainability

The use of sustainable forest biomass (wood) has been governed in Denmark since 2014 through a voluntary Industry Agreement, targeted at combined heat and power (CHP) plants over 20 MW. It is based on eight key criteria and compliance is overseen through the production of annual, third-party verified reports.

The EU Renewable Energy Directive II, transposed into Danish law via the Act on Promotion of Renewable Energy and the Electricity Supply Act, sets out rules on sustainable biomass and, from 2020, superseded the Industry Agreement. These rules provided an expanded remit, including industrial plants over 20 MW, electricity and heating over 5 MW and biomass importers or manufacturers handling more than 20,000 tonnes per year.

According to its NECP, Denmark has pre-existing forestry regulations “with the purpose to maintain the existing forests and increase the forest area [...] promote sustainable forestry [and] ensures that use of Danish produced firewood does not lead to deforestation.

The Danish biochar strategy also lays out key requirements regarding biomass sustainability and maximum sustainable biochar application rates considering the national phosphorus ceiling.

Despite the presence of these sustainability guidelines, Danish environmental NGO Concito has highlighted that the presence of subsidies for bioenergy and BECCS undermines the need to constrain biomass use to sustainable levels. The NGO argues that the value of storing CO₂ in soils and unharvested wood is not adequately reflected by the incentives in place for harvesting.

Mitigation deterrence

The 2022 Climate Programme recognises the recommendation of the Climate Council to focus on reducing emissions, indicating that it seeks to ambitiously reduce emissions across society, whilst acknowledging the need to focus on both reductions and removals and to provide dedicated support for the latter.

Note: Mitigation deterrence is explained in a separate report by Carbon Gap.

Like-for-like principle

The government has invested in the development of removals involving geological storage, e.g. via the NECCS Fund, outlined in section 18. The Agreement of the Finance Act for 2022 sets the goal to advance the negotiations on a comprehensive strategy for capturing and storing CO₂ through the subsidy pool. However, it is unclear what these removals are intended for.

Note: The like-for-like principle is a precondition to reach a state of durable net zero, in which all fossil GHG emissions are compensated by durable removals.

At the EU level, the Carbon Removal and Carbon Farming Framework (CRCF), an EU-wide certification mechanism, entered into force in November 2024 . Methodologies for each CDR method will be developed by the EU Commission, which will be applicable across EU member states.

At the EU level, the Green Claims Directive, combined with the Directive on Empowering Consumers for the Green Transition, is expected provide a comprehensive framework for climate-related claims, including what is defined as a compensation claim.

Stemming from the EU Climate Law, only land-based removals from the LULUCF sector can be accounted for in the Danish national inventory and be reported in Denmark’s contribution towards the EU nationally determined contribution (NDC).

BECCS can be reported under Effort Sharing Regulation, but not accounted for towards national emissions targets set by the Regulation, as per new guidelines by the European Commission.

Furthermore, the CRCF states that all certified units should count towards the EU’s NDC. However, inclusion in the NDC might not take place prior to the publication of the IPCC’s methodology report in 2027, which will provide guidance as to how durable CDR should be accounted for.

The CRCF states that by 31 July 2026, the Commission needs to assess whether the CRCF and Article 6 of the Paris Agreement could be aligned. This would mean that Article 6 credits would be eligible to become CRCF units. For now, the EU’s NDC and its targets set in the European Climate Law are to be achieved only through domestic measures.

(a) Legal framework covering key aspects

Key instruments relevant to CO₂ transport and storage in Denmark include:

• A Consolidated Act on the use of the Danish subsoil;
  • Including an Act amending the act on the use of the Danish subsoil
• An Agreement on strengthened framework conditions for CCS in Demark;
• An Executive Order on pilot and demonstration projects;
• An Executive Order on the geological storage of CO₂ of less than 100 kiloton (kt) for research, development or testing of new products and processes;
• A Consolidated Act on the environmental assessment of plans and programmes and of specific projects;
• An Executive Order on the administration of international nature conservation areas and the protection of certain species in connection with the feasibility studies, prospection and extraction of hydrocarbons, storage in the subsoil, pipelines, etc. offshore.

Legality of CO₂ transport and storage

A raft of legislation, including amendments and Executive Orders, was introduced in 2021 and 2022 to exempt geological CO2 storage from prohibitions previously in place under legislation such as the Danish Marine Environment Protection Act, ensuring that CCS activities do not contravene Danish legislation.

Executive Order No. 1165 sets out areas of the Danish continental shelf that are eligible for permit applications for CO₂ storage and associated exploration.

Licences for CO₂ exploration and storage are managed by the Danish Energy Agency. One aspect of the licence regime is that the state holds a 20% stake in projects, via a partnership agreement, and thus shares in any profits from projects.

The EU TEN-E Regulation sets out guidelines for cross-border energy infrastructure within the EU, including trans-border CO₂ infrastructure projects.

Through the Industrial Carbon Management Strategy, the EU signalled the upcoming development of a dedicated regulatory package for CO₂ transport to cover remaining gaps in the CO₂ transport legal framework, including coordination between the many actors in the CCS value chain and standards for CO₂ purity.

Liability for CO₂ storage

Rules for monitoring and reporting for CO₂ storage are set out in the EU CCS Directive, and transposed into Danish law via the Act on environmental assessment of plans and programmes.

The Consolidated Act on the Use of the Danish Subsoil (2018) Act establishes liability of licensees to pay damages for “loss, damage or injury” related to activities carried out under the licence, even if accidental.

Environmental safety and remediation

The EU Environmental Liability Directive provides an EU-wide liability framework for environmental damages, including those induced by geological storage sites of CO₂. It was transposed into Danish law through the Environmental Damage Act.

Geological CO₂ storage falls under the scope of the Danish Environmental Assessment Act, meaning activities must perform a full impact assessment, with the exception of pilot projects under 100 kt under Executive Order No. 974.

The Danish Energy Agency has undertaken Strategic Environmental Assessments regarding CO₂ storage on land and near-shore and these have been consulted on publicly. These reports assess the potential and suitability of sites, taking into account the Nature 2000 protected areas.

An Executive Order, related to international nature conservation areas and protected species in the context of subsurface activities, requires that projects likely to have significant effects on such areas and species undergo an impact assessment and demonstrate no adverse effect.

London Protocol

Denmark is one of the few countries that has ratified the London Protocol’s amendment to Article 6, provisionally allowing contracting parties to transport CO₂ for geological storage across maritime borders. This ratification has led the Danish, Belgian and regional Flemish governments to develop an agreement and, subsequently, a framework for the storage of Belgian CO₂ in Denmark in early 2022. Act No. 2608 on amendment of the Danish Marine Environment Protection Act exempts geological CO₂ storage from the rules prohibiting dumping in the marine environment. This is further supported by Executive Order No. 934.

In 2022, the EU Commission released guidance on how to understand the amendment to Article 6 of the London Protocol. It concluded that the EU CCS Directive and the EU ETS Directive acted as a sufficient arrangement between countries in the European Economic Area (EEA). Therefore, according to the Commission, there is no need for bilateral agreements to implement the amendment to Article 6 of the Protocol. Bilateral agreements could be concluded only on issues that are not covered by the two directives.

(b) Legal framework covering all types of CO₂

The EU ETS Directive only recognises fossil CO₂ under its scope, as it only puts a price on emissions of fossil CO₂.

The EU TEN-E Regulation does not explicitly recognise all types of CO₂, causing confusion regarding whether projects transporting and storing biogenic and atmospheric CO2 can be labelled as Projects of Common Interest or not.

Various support policies target both fossil and biogenic sources of CO₂, such as the CCUS Fund described elsewhere in this report.

Note: In the context of carbon management, there are three main types of CO₂, depending on their sources: atmospheric, biogenic and fossil CO₂. Atmospheric CO₂ is generally sourced from direct air capture, biogenic CO₂ from bio-energy with carbon capture and fossil CO₂ by point-source carbon capture in industrial facilities burning fossil fuels. Legal frameworks must cover all types of CO₂ to ensure equal access to CO₂ transport and storage infrastructure.

(a) Physical storage capacities

Geological storage

According to the Danish NECP, “The National Geological Studies for Denmark and Greenland (GEUS) estimate the total storage capacity of a number of identified saline aquifers at 12.000 Mt and at least a further 10.000 Mt are estimated for other identified structures, open aquifers and volcanoclastic sediments. The potential storage capacity for end-of-life oil and gas fields is also significant. In addition, a significant part of the Danish area is used for agriculture, where it will be technically possible to store carbon in the form of biocarbon from pyrolysis. The structures are offshore, near-shore and onshore. As of March 2023, the first three exploration permits have been granted for offshore storage in the north-western North Sea, two of which are located in depleted oil and gas fields, and one for a Salin aquifer. GEUS is currently exploring and mapping 8 potential land and coastal storage sites. At the same time, the Danish Energy Agency carries out a strategic environmental assessment of the areas. The completion of these activities and an evaluation of their results is likely to result in a call for further investigation applications in 2023/2024.”

The National Geological Survey of Denmark and Greenland (GEUS) has estimated geological storage potential in Denmark at 12-22 GtCO₂.

Mineral and product storage

Denmark’s Climate Program 2022 estimates a biochar removal potential of 1.0-2.3 MtCO₂ by 2030, while the Agreement for a Greener Denmark suggests a potential of 0.3-0.6 MtCO₂ by 2030. The 2024 biochar strategy refines this figure to 0.8-38 MtCO₂ depending on biomass type, taking into account the national legal ceiling on phosphorus application on land. The strategy also assesses the biochar potential when relying on biomass sourced only from Denmark.

(b) Estimation of CO₂ storage needs

The think-tank Concito has estimated that Denmark needs to capture 5 Mt per year by 2030 from waste incineration plants, biogas plants and certain industrial processes, to align with its target to cut national emissions by 70% by that year.

Ownership of infrastructure

A licence condition for CO₂ storage projects in Denmark is a generic 20% stake given to Nordsøfonden, the state-owned firm that manages Denmark’s subsurface assets.

State support

State support with demonstration and deployment of CO₂ transport and storage is offered through the Energy Technology Development and Demonstration Programme (EUDP), which has supported projects like Project Greensand (Phase 2), aiming to demonstrate the full transport and storage value chain including the establishment of appropriate monitoring practices, and Bifrost, which seeks to demonstrate CO₂ transport and storage in repurposed oil pipelines and wells.

Cross-border cooperation

The framework for cross-border cooperation is set under the EU TEN-E Regulation through the “Project of Common Interest” (PCI) label. Cross-border projects that have been labelled as PCIs can apply for funding under the Connecting Europe Facility for Energy. Earning the PCI label can help projects reach a final investment decision, as the label adds a seal of assurance that the project is robust.

Indication of capture and storage volumes

The EU Net Zero Industry Act (NZIA) set a mandatory injection capacity target of at least 50MtCO₂/year by 2030 in the EU.

Licensing rounds for offshore and onshore exploration and storage of CO₂ were launched on 15 August 2022 and 13 December 2023 respectively, by the Danish Energy Agency. These were preceded by strategic environmental assessments of the designated areas to assess their suitability for CO₂ storage from a geological, safety and environmental perspective.

The Invitation to apply for licences, issued by the Danish Energy Agency, states that “applications can then be submitted to the Danish Energy Agency every year in the period 15 August to 1 October of the same year. A decision on the granting of authorisations shall be taken at the end of each application period. Licenses are granted after submission to a committee set up by the Danish Parliament.” The document sets out the selection criteria for applicants, including a foundational condition of having the technical and financial capacity to operate the storage site. The document also notes the requirements for data collection and availability, the schedule of data submission and the “detectability” of storage potentials.

Several projects have already received permits for exploration of geological CO₂ storage below the North Sea in early 2023. The approved projects are expected to reach an annual injection capacity of 13 Mt CO₂ in 2030.

Adjacent to storage projects below the North Sea, onshore CO₂ storage may be permitted following a broad cross-party compromise on new framework conditions of CO₂ storage in Denmark. Following the compromise, the Danish parliament has provided the Geological Survey of Denmark and Greenland with additional funding to explore CO₂ storage possibilities onshore and close to shore in Denmark.

Denmark’s climate minister has stated his intention to provide geological CO₂ storage space below ground in Denmark (estimated to amount to 22Gt CO₂) for other EU countries, underlining the willingness to increase international cooperation on CO₂ transport and storage. On 20 June 2024, the Ministry for Climate, Energy and Supply awarded three new licences for exploration and storage of CO₂ on land.

In May 2023, Orsted was awarded about EUR 1.1 billion to capture and store 0.4 MtCO₂ from two heat and power plants from December 2025. In October 2024, the government opened the tender for CCS projects, valued at DKK 28 billion (EUR 3.8 billion), aiming to capture 2.3 MtCO₂ through subsidies paid out over a 15-year period, starting from 2030.

Denmark started assessing potential policies and actions for implementing and scaling a number of CDR methods for the years 2025-2035. Scenarios by the Danish Energy Agency examine CDR’s potential role in Denmark in 2050 and project that BECCS, DACCS, biochar and forest sinks could contribute to the generation of negative emissions of up to 13 Mt CO₂e in 2050. The Long-term Strategy of 2019 – which still foresaw Denmark reaching net zero GHG emissions in 2050 and which had been developed prior to more recent 110% goals – expected to counterbalance the residual emissions in 2050 with removals in the LULUCF (land use, land use change and forestry) sector.

Biomass availability

The Danish NECP comprehensively quantifies the role of biomass in Denmark’s economy, including the role of different biomass sources in renewable energy production, heat, and biogas production. The Danish biochar strategy further considers biochar deployment potentials, recognising availability constraints on Danish biomass, as well as the national legal ceiling on phosphorus application, which limits the amount of biochar that can be sustainably applied.

Renewable energy supply

Much of the negative emissions opportunity in Denmark is associated with biomass, including biogenic CO₂ capture from bioenergy facilities. The renewable energy needs for CDR are thus strongly interlinked with bioenergy production. Denmark has estimated that over 50% of its long-term capture potential (across industrial, waste incineration, energy production and biogas plants) is biogenic. The total capture potential is estimated to be 5.4-10.8 MtCO₂.

Capture potential

The Danish Energy Agency has estimated the total capture potential for Denmark to be 5.4-10.8 MtCO₂ annually by 2040.

Land use

The Agreement for a Greener Denmark, set out by the Green Tripartite coalition of political groups at the start of the new Danish government, outlined targets including the “afforestation of 250,000 hectares and the reclamation of 140,000 hectares of carbon-dense peatlands” as well as the “objective to protect at least 20% of natural habitats".

As part of its Green Research Strategy, published in 2020, the government highlights four key green missions to prioritise in 2021:

1. Carbon capture and storage or utilisation;
2. Green fuels for transportation and industry (Power-to-X etc.);
3. Climate and environment-friendly agriculture and food production;
4. Recycling and reduction of plastic waste.

Based on these missions, a number of concrete initiatives are described, including better coordination of green research, better framework for cooperation between knowledge institutions and the business community, strong Danish participation in international cooperation, monitoring and impact assessments of green research and others.

As part of the CCUS mission, the need for CDR is highlighted.

The INNO-CCUS public-private partnership was established to promote CCUS technologies in response to the CCUS mission identified by the Green Research Strategy. The report Direction 2050: Danish CCUS Roadmap was published in May 2024, setting out key actions for Denmark to develop its CCUS sector to achieve national climate targets.

Denmark is described by the European Commission as “one of the few EU member states to have reached Europe’s 2020 target for R&D intensity, 3% of GDP, and has the ambition to become a world leader in turning research into innovation – optimising its system for knowledge-based innovation for the benefit of society as a whole.”

The Danish biochar strategy sets out a research agenda for biochar including multi-year field trials to assess environmental and agronomic effects, studies to assess the generation of environmentally harmful substances through pyrolysis, and synthesises knowledge on biochar storage.

DKK 302 million (EUR 40 million) from the Innovation Fund Denmark is allocated towards the strategic missions outlined above.

Geological storage

Since 2007, Denmark’s Energy Technology Development and Demonstration Programme (EUDP) has provided funding for the demonstration of innovative green technologies, including those focused on geological CO₂ storage and direct air capture (DAC) technology. Projects include Bifrost and Greensand, both focused on enabling permanent geological storage of CO₂ in the Danish North Sea. The latter commenced injection of CO₂ (which was captured in Antwerp, Belgium, and transported to Denmark for storage) in March 2023, focused on small scales for safety testing. In December 2024, Greensand reached final investment decision, with an aim to start large-scale storage in late 2025 or early 2026 as the EU’s first operational facility. The two projects could eventually reach a combined annual CO₂ storage capacity of 24 Mt CO₂. Furthermore, the EUDP granted funding for the research project CHOCO₂LATE focused on investigating and demonstrating DAC and turning captured carbon into fuel.

Biochar and pyrolysis

Denmark has allocated DKK 196 million (EUR 26 million) for pyrolysis in 2023-24, in addition to DKK 200 million (EUR 27 million) through the Finance Act for 2021, both funded through the EU’s Just Transition Fund and implemented through the Danish Business Authority. An additional DKK 80 million (EUR 11 million) has been dedicated to the research and development of pyrolysis technology from 2023 onwards via its research reserve.

The EUDP also provides funding for biochar, with DKK 50 million committed to pyrolysis project, including DKK 2 million (EUR 270,000) to demonstrate the use of biochar in high-strength concrete for wind turbine foundations and DKK 6.5 million (EUR 870,000) for “microwave cracking” to produce biochar from organic waste.

Denmark also supports RD&I through the Green Development and Demonstration (GUDP) programme, which targets innovation in the food sector. Supported projects include investigating the synergies between biogas and pyrolysis (DKK 14 million, EUR 1.9 million), the Grass Biochar project (DKK 6 million, EUR 800,000) and the SoilC-net project focused on knowledge exchange on soil-based carbon storage (DKK 0.3 million, EUR 40,000).

Other methods

The EUDP also supports the demonstration of projects using biomass to generate bio-oil from microalgae and mineralisation.

Denmark is one of only two EU member states with operational deployment incentives for CDR. Denmark has appropriated public support for multiple CDR methods, with tenders under the NECCS Fund already underway and large-scale support for biochar planned for the years ahead (although exact biochar support mechanisms are unclear).

The CCS, CCUS, and NECCS Funds act as targeted subsidies for CCS and CDR, with each providing long-term contracts to financially support a limited number of projects. The NECCS Fund is a “technology-neutral” subsidy pool focused on capture from biogenic sources and the establishment of a value chain for negative emissions. With DKK 2.5 billion (EUR 330 million) of funding, the fund aims to achieve 0.5 Mt of CO₂ capture annually from 2025.

Projects eligible for the NECCS Fund include direct air carbon capture and storage (DACCS) installations, facilities upgrading biogas, biomass-based power and heat production, and biogenic CO₂ capture from waste incineration.

The tender for the NECCS Fund, through which projects compete for subsidy contracts, was completed in April 2024. Three projects were selected, expected to capture a combined 160,350 tonnes of CO₂ annually between 2026 and 2032. These funds provide support for an 8 to 15-year period through subsidies paid per tonne of CO₂ removed/captured and stored. Winners include BioCirc CO₂ ApS,Bioman ApS, and Carbon Capture Scotland Ltd (recently rebranded as The Carbon Removers). There are currently no plans for further tendering rounds of the NECCS Fund.

In parallel to the NECCS Fund, Denmark has established a CCUS Fund, which targets the capture of both fossil and biogenic CO₂. Following a restructuring of the funds, the CCUS Fund was transformed into the CCS Fund. In October 2024, Demark opened the tendering process for the Fund, capitalised at DKK 28.7 billion in 2025 terms (roughly EUR 3.8 billion). The subsidy involves 15-year contracts covering capture, transport, and storage, placing requirements on counterparties to commission and meet full capacity by certain dates.

The Agreement for a Greener Denmark, set out by the Green Tripartite coalition of political groups at the start of the new Danish government, also announced plans to fund novel CDR methods, such as pyrolysis for biochar production, and further support for BECCS projects and applications. Under the Danish biochar strategy, a DKK 10 billion (EUR 1.3 billion) subsidy scheme for biochar is committed, to be granted per tonne of CO₂ stored and to commence from 2027.

The agreement for a greener Denmark, launched by the green tripartite agreement in June 2024, highlights an array of measures that will be taken to promote nature restoration and associated CDR. Denmark’s Climate Program 2022 gives an overview of existing policies and provides examples of ways forward for a range of conventional and novel CDR methods, including support for afforestation and peat/carbon-rich soils rewetting projects.

The Green Area Fund (Grøn Fond), also established by the green tripartite agreement and totalling DKK 40 billion (EUR 5.4 billion), introduces dedicated incentives for less durable CDR methods, particularly to deliver the first phase of the Danish Climate Adaptation Plan, including for establishing new forests, land conversion, and land acquisition.

The Danish Climate Forest Fund (Klimaskovfonden) was established by the Danish parliament in 2020 to “plant trees and transform low-lying soil into natural areas and wetlands”. Funding for these projects is generated through the sale of CO₂ reduction and removal credits.

Private initiatives also support nature-based CDR initiatives in Denmark, for example, the Novo Nordisk Foundation has committed to providing up to DKK 10 billion (EUR 1.3 billion) over 10 years “for converting land in Denmark to enable space for more nature and biodiversity and for agricultural production based on modern technologies”.

The EU Common Agricultural Policy sets up direct payments through ecoschemes aiming to support environmentally friendly practices. Some activities enhancing soil carbon sequestration are among the recognised practices.

The European Commission is due to publish a report by July 2026 examining the possible inclusion of CDR into the EU –Emissions Trading System or another compliance regime.

Denmark has advocated for CDR inclusion in the EU ETS and has supported the development of EU incentive mechanisms for CDR alongside the Netherlands, Norway and Sweden to contribute to the EU climate neutrality target, recognising that this could be within or outside the EU ETS.

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Denmark established an Expert Group for a Green Tax Reform in February 2021, whose research and recommendations ultimately informed a raft of green tax reform measures adopted by the Danish Parliament in June 2022, reorganising existing carbon taxes and establishing new ones.

The measures include a CO₂ tax of DKK 750 (EUR 100) per tCO₂e for firms outside the EU ETS, DKK 375 (EUR 50) per tCO₂e for firms inside the EU ETS, and DKK 125 (EUR 16) per tCO₂e for firms with mineralogical processes (such as cement manufacturers), all by 2030.

In June 2024, the Danish government announced a landmark new agricultural carbon tax, levied on farmers and covering multiple greenhouse gas emissions associated with livestock cultivation, fertiliser, forestry and disturbance of low-lying soils. The tax will start at DKK 300 (EUR 40) per tCO₂e in 2030, increasing to DKK 750 (EUR 100) per tCO₂e in 2035, but a tax break of 60 per cent will be offered to limit the increase in production costs. This will lead to an effective tax of DKK 120 (EUR 16) per tCO₂e in 2030 increasing to DKK 300 (EUR 40) per tCO₂e e in 2035. Revenues from the tax will go towards a transition support fund, to help farmers navigate the agricultural transition – the strategy for disbursing these funds will be reviewed in 2032.

In December 2023, the government announced a tax on air travel, starting from 2025, to support its goal of achieving 100% sustainable aviation-fuelled flights by 2030. The tax is levied per passenger, and applies to intra-European, medium-distance and long-distance flights, starting at DKK 30, 250, and 300 (EUR 4, 33, 40) respectively.

As part of its strategic environmental assessments regarding the suitability of areas where tenders have been opened for onshore and offshore geological storage, the Danish Energy Agency conducted public consultation around the sites for CO₂ storage on land and near-shore.

The Danish biochar strategy states the aim to strengthen guidance and streamline case processing at the municipality level regarding permitting, which will include information meetings or workshops for relevant stakeholders including environmental authorities.

Denmark plans to use the revenues from its agricultural carbon tax towards a transition support fund, to help farmers navigate the agricultural transition – the strategy for disbursing these funds will be reviewed in 2032.

The green tripartite agreement has committed DKK 100 million (EUR 13 million) from 2027-2030 for upskilling the agricultural workforce.

The EU Just Transition Mechanism makes available funding for member states to support the green transition in territories most at risk of losing jobs due to the transition. Denmark’s NECP explains that, from the EU Just Transition Fund, "Denmark is expected to receive a total of DKK 663 million (EUR 89 million) in current prices over 2021-27. North and South Jutland have been identified as eligible parts of the country, as they are supposed to be most affected by the transition process towards a climate-neutral economy by 2050.” Of these funds, DKK 100 million (EUR 13 million) has been allocated to the development of “business lighthouses” in northern and southern Jutland, which will focus on alternative low-carbon fuels, support circular economy measures amongst SMEs and promote adoption of green materials and technologies, as well as enabling the upskilling of 10,000 workers.

Under the Innovation Fund Denmark, several projects examining the social and ethical dimensions of CDR have been granted research funding. Projects include research on the social and economic impacts of direct air capture, and public acceptance and preferences regarding CCUS technologies.