Denmark invests $407 million to switch to electric vehicles

Denmark will spend $407 million on new incentives to switch to electric vehicles, Ecotown reports.

This is stated in the time plan on the decarbonization of the transport sector approved by the parliament.

Officials estimate that additional incentives will increase the number of electric cars from the current 20,000 to 775,000 by the end of the decade. In 2025, the strategy will be revised and expanded if the first package of measures justifies itself.

According to the new document, taxes and scrappage fees on used cars with an internal combustion engine will gradually increase. And taxes on new gasoline vehicles will depend on how much carbon dioxide they produce. This system will replace the traditional vehicle tax, which is currently based on horsepower and fuel consumption.

“In the coming years, the cost of an electric car will decrease significantly, so the legislative reform will not affect the country's economy,” explained Morten Bødskov, Minister of Taxation of Denmark. "Besides, the state will provide additional incentives for buyers of the first electric car and support the creation of infrastructure for charging stations.”

Full implementation of the plan will reduce national CO2 emissions by 70% - more than 2 million tonnes by 2030.

Earlier it was reported that Ukraine could completely switch to urban electric transport by 2030.