Voluntary agreements industry on energy efficiency

Since 1996 Denmark has used voluntary agreements on energy efficiency as an important instrument to improve the energy efficiency in industry.

The voluntary agreement scheme is closely integrated with the Green Tax Package as companies, who enter an agreement, receive a rebate on the green taxes.

The agreement system has two main objectives. One is to encourage energy-intensive companies to improve their energy efficiency. The other is to ensure that the international competitiveness of energy-intensive companies is retained.

The agreement system contains three essential elements:

  • energy management
  • special investigations focusing on improving energy efficiency of the primary production
  • processes investments in projects improving the energy efficiency

By 2004 approximately 280 Danish companies have entered an agreement, representing more than 50 per cent of the total energy consumption in the industry.

By 2005 approximately 60 of these companies will be part of the Danish allocation plan for CO2 emission allowance trading scheme and will therefore drop out of the voluntary agreement concerning the energy use that is under CO2 emission allowance trading scheme. There is for these companies still the possibility to have a voluntary agreement concerning the electric energy.

Read more about the agreement system in the pamphlet Voluntary Agreements on energy efficiency – Danish Experiences (pdf - 8 pages) 

Read the report: Danish agreements on energy efficiency  (html - 17 pages)

Read more about the evaluation of the green taxes and the agreement system in “Green Taxes for Trade and Industry description and evaluation (pdf - 44 pages)

Report of April 2006: Evaluation of the Danish voluntary agreements on energy efficiency in trade and industry

Danish Energy Agency    Amaliegade 44     DK 1256 Copenhagen K    Phone: +45 33 92 67 00    Fax: +45 33 11 47 43    ens@ens.dk    Further contact information