This report only concerns the VA scheme, which cannot, however, be studied independently
of the CO2 tax. The objective of the VA scheme is twofold; firstly to encourage
energy efficiency in industry in order to reduce the CO2 emissions and secondly
to ensure that the competitiveness of Danish industry is not weakened by the
increased green taxes. The agreement scheme mainly targets energy-intensive industries
that are given the possibility to enter VAs with the Danish Energy Authority
(DEA). The VAs obligate the companies to undertake a number of tasks promoting
energy efficiency. In return the companies obtain a CO2 tax rebate. The
VAs are signed for a three-year period. Companies can enter them either individually
(individual agreements) or as a group, typically an industrial sub-sector (collective
agreements).
The VA scheme has been evaluated and revised several times since the launch in
1996. A major revision was decided on in 1999. The revised scheme entered into
force in 2002.