Denmark plans to tax all heating - heat pumps likely to benefit

Dec. 05, 2013

The Danish government is planning to introduce a new tax on all heating systems from the 1st of January 2014 onwards. This would not only comprise oil and natural gas but also district heating and biomass combustion. If the tax will be passed by the Parliament it might have positive consequences for the heat pump market.

The tax is a part of Denmark's energy agreement from 2012, which aims at phase out fossil fuels in the electricity and heating sector by 2035. One of the measures that is already into force is the ban on oil-fired boilers in new buldings. However, the budget to finance this energy agreement mainly comes from levies on oil and petrol. Since these will be used less in the future, the income will automatically fall as well.

Therefore the parties behind the energy agreement have propsed to levy the tax to all kinds of heating, including district heating and biomass. Since the tax is not affecting electricity, this is likely to have a positive impact on the Danish heat pump market.

(Source: ENDS Europe)