After the introduction of the CO2 tax, the Government soon realized that additional
initiatives were necessary if Denmark was to meet its CO2 target for 2005. Since
the burden from green taxes was already relatively heavy on households, it was decided
that additional measures should target trade and industry. These measures
must not, however, harm the competitiveness of Danish industry in a noticeable
way. After a long political bargaining process, the Green Tax Package was passed
in Parliament in 1995.