World’s first CO2 agriculture tax; Your local rights; 2025 Financial law

Last Week in Denmark (17.11-24.11) Episode 40 Year 4

Nov 24, 2024

Editor HQ

State of Denmark

The first snow of the year has arrived, painting the world outside in soft, fleeting white. Snowflakes dance against the windowpane, a gentle reminder of the festive season creeping closer. Yet, for many of us, the magic fades as quickly as it arrives, overshadowed by the steady hum of work. Perhaps it’s only when a long-awaited winter vacation beckons that we truly pause to appreciate the quiet wonder of these icy messengers.

Sadly, the first snow of the year brought more than just a winter wonderland — it served as a stark reminder of the need for preparation. Roads quickly turned chaotic as drivers on summer tires struggled to navigate, leading to multiple accidents and blocked routes. Long queues formed at mechanic shops as people scrambled to switch to winter tires. Meanwhile, several electric buses, unable to cope with the sudden change, were left stranded by the roadside. A beautiful yet sobering start to the season.

P.S - The police are reminding people to stop taking pictures of accidents and then sharing them on social media. It is illegal.

Referral Campaign

It’s only the second week of the referral campaign sponsored by Bloomtree Tech, and ...drum roll… we have already achieved our goal of 1,000 new subscribers! In fact, we are at 1,266 new subscribers. Let’s keep up the momentum and aim for 2,000 subscribers. If you missed the details about the competition last week, you can read about it here.

Top 5 this week (11/22/2024): The American influencer Ellie Owens joined the race and claimed first place (231); the Moldavian-Romanian regional politician Alina Racila is in second (76); the Argentinian translator Milena Giunti is in third place (63); the Kiwi copywriter Rupert Jacobsen (60) is in fourth place, and the Indian developer Keith Machado (53) is in fifth.

Share Last Week in Denmark

There are two more weeks left in the competition (deadline December 13), which means it is still anyone’s game. Wanna know how to win? Well, you can do like Shawn (Ellie’s friend) and get an influencer to join the race. :) Or like Alina, who made short videos on her social media. Time to apply those comms skills you are boasting about and show the international community in Denmark why you are the GOAT.

Thank you for reading and sharing Last Week in Denmark!

P.S - Read about the rare phenomenon of winter thunder.

LWID Universe

Instagram: Welcome to the new team leader, Zsófia Tamásy. We look forward to seeing the new chapter in the life of our Instagram page.

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Danish Politics HQ

Weekly political overview

The Ministry of Culture has announced a broad parliamentary agreement to introduce a cultural passport worth 2,000 DKK for young people aged 15 to 24 who are neither working nor studying. Starting in the summer of 2025, 43,000 young people will receive the card, which can be used for activities such as visiting museums, attending concerts, going to the cinema, or watching football matches. The initiative aims to enhance their well-being through access to culture, leisure, and sports.

The goal of establishing a 100% "green fuel" domestic flight route by 2025 appears increasingly unlikely. The transport minister is already considering a "plan B," acknowledging that reaching 50% might be the most realistic target next year. The delay is due to pending permits for flying exclusively on "green fuels," with no clear timeline for approval. The international aviation authority, ASTM, is responsible for issuing these permits.

The climate minister has decided not to penalize municipalities that reject solar parks and wind turbines. Several municipalities along the west coast have expressed frustration with these projects. However, with the government aiming to quadruple land-based solar and wind energy by 2030, financial incentives will be offered to encourage municipalities to approve green energy developments.

Marking 1,000 days since the war in Ukraine began, Prime Minister Mette Frederiksen visited Ukraine to announce an additional one billion DKK contribution. She highlighted Denmark's proactive and swift support for Ukraine and called on Western nations to abandon their restrictions and provide Ukraine with the necessary weapons. "Russia will not stop at Ukraine," Frederiksen stated.

A grant of three million DKK has been allocated to help Greenlanders find employment in Denmark. Four municipalities will run a pilot project using the funds for Danish language lessons, job search courses, and personalized support. Currently, only one-third of Greenlanders living in Denmark are employed

Focus

One year until the local and regional elections: Last time, we had international candidates (people without Danish citizenship) in 22 municipalities out of 98. If you are a European citizen (including UK, Norway, and Iceland), you have the right to vote and be a candidate as long as you have a yellow card and are at least 18-years-old. If you are a non-European citizen, you need to wait four years. Like never before, political parties are having difficulties in finding candidates for local and regional councils. That makes it perfect timing for any of you that have the courage to stand up for the international community. Go and make history, as most likely you will be the first international ever elected in your municipality.

The world’s first CO2 tax for agriculture: A broad majority in Parliament is behind the green transition agreement, with the exception of DF (Nationalist Conservative), DD (Nationalist Populist), Alternativet (Greens), and Enhedslisten (Red-Green Alliance).

Farmers will have to reduce their nitrogen emissions by 13,780 tons. Excess nitrogen from fertilizer goes into rivers and further into the sea, causing the historical loss of oxygen in the fjords. Farmers on Bornholm are exempt. Denmark will attempt to make a deal with Sweden and Germany so that their farmers also reduce nitrogen emissions.
One billion trees are to be planted in the next twenty years. An area as large as Fyn will become forest. 43 billion DKK will be used to buy agricultural land and convert it into forest. 10% of Denmark’s territory will be dedicated to nature.
Business opportunity! Reforestation, establishment of wetlands, and extraction of low-lying soils. Any companies that can offer such services will do well. Also, innovations on nitrogen reduction in fertilizers plus climate accounting services will be needed by the farmers.
From 2030, farmers will pay a CO2 tax for emissions from livestock at a rate of 120 DKK per ton of CO2. From 2035, the tax will be raised to 300 DKK per ton of CO2. The tax will make meat and other animal products a bit more expensive.

Danish Economics HQ

Weekly economics overview

Transport deductions for 2025 remain at the 2024 level. The rate is 2.23 DKK per km between 25 and 120 km of commuting distance. Over 120 km is 1.12 DKK per km. The tax-free allowance that is paid to employees who drive their own car for business purposes will be increased from 3.79 DKK per km to 3.81 DKK per km.

For two years, a cartel of electricity companies has colluded to keep electricity prices artificially high. The primary players include Effekthandel and eight power plants—Silkeborg, Vildbjerg, Feldborg, Haderup, Ørnhøj-Grønbjerg, among others—along with 41 smaller entities. This conspiracy drove prices up in 2020, skyrocketing from 5 DKK per megawatt to 68 DKK per megawatt.

A one-stop shop for green production companies is being introduced by the Ministry of Business to streamline the process of establishing production facilities for components in industries like wind energy, CO2 capture and storage, and hydrogen. Currently, setting up such facilities can take up to three years and requires dealing with up to 20 different authorities. The new initiative aims to cut this timeframe to a maximum of 18 months. Additionally, the government plans to create five industrial parks designed to make it easier for production companies to establish operations.

Danish companies are increasingly targeted by cyberattacks, prompting a shift in their cybersecurity strategies. The Dansk Erhverv reports a significant rise in cyber incidents, with 68% of companies experiencing attacks in the past year. In response, businesses are investing more in cybersecurity measures and employee training to mitigate risks.

A private investor has acquired a 51% stake in Aarhus Airport for 120 million DKK, while the remaining 49% of shares are retained by Aarhus, Norddjurs, and Syddjurs municipalities. Previously, Aarhus Municipality held a 90% majority. Last year, the airport faced a deficit of 83 million DKK and was at risk of running out of cash this year. The new ownership structure aims to revitalize the airport, with plans to boost annual passenger numbers from 449,000 to 1.5 million.

The world's wealthiest nations must assist poorer countries in financing the green transition and adapting to an increasingly severe climate. While there is consensus on this need, a draft agreement has finally been released after two weeks of negotiations, which proposes a fund of $250 billion. However, this amount falls significantly short of the estimated $1.3 trillion required annually by developing countries.

Focus

What is your tax money being spent on in 2025? Although it will be formally approved in the Parliament in early December, there is now a majority agreement for the financial law 2025. What are the main points?

As we predicted last week, the home improvement tax deduction is back. This time for climate-proofing your house. Improvements that will improve energy efficiency and prepare your home for extreme weather conditions will be deductible by up to 8,600 DKK per year.
The services tax deduction is increased from 11,900 DKK per year to 17,500 DKK per year and expanded to include repair services of white goods (appliances).
As an experiment, several public schools will get free meals. 20,000 “folkeskole” students will receive free lunches from the summer of 2025. If the experiment is successful, it is planned to expand the initiative to the whole country.
Parents of children born prematurely will be able to extend their maternity allowance to up to 12 months.
When a parent loses a child, they will be allowed a longer bereavement period.
The waiting time to be diagnosed with dementia will be reduced.
People who have been subject to violence or robbery will have access to psychologists free of charge.

Entrepreneurship Corner

Entrepreneurs from Aalborg and surroundings are invited to the “First Network Meeting for International Entrepreneurs” at the Aalborg Institute for Development HQ on Niels Ebbesens Gade 26, 9000 Aalborg. When? Wednesday, November 27, 17:00. Why? Funding opportunities and the launch of a new co-working space.

Want to make your business more sustainable? Feeling overwhelmed by green regulations and unsure if they apply to you or how to prepare? Take advantage of vouchers worth up to 75,000 DKK for circular economy initiatives, expert consulting, and developing green competencies. Don’t miss this opportunity; the deadline is December 2! Contact Anastasiia at ab@aalborgid.com for details.

Daily Life in Denmark HQ

Insights into the Danish way of life

Last week, we started this column by saying that the ice wasn’t coming from the sky. After a week of beautiful snow, it is time to take that back, as November has now given us the first white-covered fields and trees. This also means increasingly slippery streets, which is especially a hazard to cyclists. As we know, the show must go on. We encourage all bike lovers to embrace the cold in true Danish fashion and stick to cycling, but more than ever, be aware of the importance of proper cycling and wearing helmets. On especially icy days, it might be worth a meeting with your Rejsekort.

Unfortunately, the travel card won’t be the only card you’ll see a lot of in the coming weeks – December is a tricky season for everyone’s bank account. Do save the date for this year’s Black Friday on November 29, as it will be a great opportunity to stack yourself up with necessary gifts and other seasonal spendings.

In Denmark, the gift-giving season starts early with the advent period. It is a common Danish tradition to give and receive advent calendars – but we are not only referring to the lovely cardboard boxes filled with sweets that you buy in supermarkets and shops. For most Danes, is it common to give gifts to each other every day of the week leading up to Christmas. Unless you have an unlimited budget, these are typically small and simple, as they serve the purpose of surprising and showing you thought of someone. Some families choose to do a rotating “calendar,” where a gift is opened each day, with family members taking turns being the receivers.

Advent season, starting next Sunday, is also marked by the use of candles.Did you know that Denmark is the country that burns the most candles per capita in the world? Advent candles come in different styles and sizes, but there are two main models: one with four markers and one with 24 markers. The first one is lit every Sunday of the advent period, whereas the other one is burned for shorter periods every day until Christmas Eve. If you want to take part in this or any other Danish traditions, you now have a week to prepare and join the Christmas hygge.

Last Week in Denmark

World’s first CO2 agriculture tax; Your local rights; 2025 Financial law

Last Week in Denmark (17.11-24.11) Episode 40 Year 4

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