Subsidies to industry

From 1996 to 2000, subsidies for investments in energy efficiency amounted to DKK 1.8 billion. About 80% of the subsidies went to the energy-intensive industries. From 2000 onward, an additional DKK 175 million/year has been allocated to the subsidy scheme, but the scheme is now open only to industry (excluding agriculture and the trade and services sector). It provides grants for three areas: investments in energy savings or efficient equipment, use of consultants and information about energy savings. In 2001 efforts in trade and services will focus on a strategy to develop, market, purchase and use more energy-efficient products. The emphasis will be on lighting, cooling equipment, ventilation, office equipment and buildings. Each year an action plan is formulated and different categories of products are given priority. For industry, the main focus in 2001 was on energy management, energy-efficient design, development of energy-efficient technology, standardised solutions and projects in selected industry sub-sectors. The tax, subsidy and voluntary agreements package was evaluated in 2000. The conclusion was that reductions of CO2 had met forecasts. In 1995 it was estimated that the package would reduce emissions by 3.9% versus an actual reduction of 3.8%. Sulphur reductions were better than expected (34 000 tonnes versus 32 000 tonnes anticipated) .The evaluation resulted in the following assessments: - The green taxation system for agriculture, trade and industry is an appropriate instrument for attaining the environmental objective, is economically effective and takes international competitiveness into account. - The administrative costs related to the voluntary agreement scheme are too high. - The voluntary agreements were consequently adjusted in 1999 by replacing the mandatory audits with a requirement to implement an independently certified energy management system. The certifying body controls compliance with the agreement, thus reducing administrative costs.