Headline Target: No sales of vehicles producing CO2 by 2035 (EU phase-out)

Car Manufacturing Country: No passenger car manufacturing.

Purchase Incentives for Cars: Registration tax reduction, ownership tax exemption. Exclusive incentives: company car tax exemption.

Supplier Regulation Policy: EU emissions performance standard (Tightening CO2 regime)

Infrastructure Incentives: None

Denmark’s EV market has been rapidly growing and is by far the largest segment in the new car market.

The government has delayed planned incentive rollbacks until 2030 highlighting the political will for the transition. This means EVs will continue to benefit from a tax free allowance which has helped to incentivise consumers to buy EVs. This tax incentive has been seen as one of the main reasons Denmark’s EV market has rapidly grown as before the complex tax system made it impossible to predict how much an EV would be.

Denmark is now keeping pace, and even overtaking some of its Scandinavian neighbours, despite its slower start. The government's target of 50% EV sales in 2025 looks likely to be hit a year earlier.