European Council OKs extension of Danish tax cut for shore power

The European Council has approved an extension of the Danish scheme for reduced tax charges for shore power for ships until June 2027.

The scheme, which was due to expire in June this year, is being extended amid considerable backing from Danish shipping companies.

The extension of the scheme for onshore electricity until 2027 will enable ferries to continue to charge batteries ashore and switch off auxiliary engines while in port at a low price.

“We are always concerned about how we can reduce local air pollution from shipping and push for the green transition in general, therefore I am pleased that ferries that currently run on batteries can continue to use electricity, instead of fuel,” Jacob K. Clasen, Deputy Director General and Deputy CEO of Danish Shipping, said. 

The decision comes as more local companies fit batteries on their ferries, such as ForSea, Scandlines, Molslinjen, and DFDS.

The Climate Partnership for Blue Denmark has also recommended that the government strengthens the electricity grid in Danish ports as a national priority.

“If we were to electrify ferry operations to an even greater extent, it would require large investments on land. One cannot just pull an extension cord from the ferry up to the nearest power stand, it requires a completely different capacity. With the Council’s decision to extend the system of tax exemption for shore-side electricity, it makes sense to continue to follow that route,” Clasen added.

Denmark has 71 ferry routes, including 19 international routes and 52 domestic routes.