Abstract

An economic incentive policy as a part of the "green taxes policy" is used by the Danish Government on natural gas fired and biomass fired industrial CHP.

Growth of combined heat and power (CHP) within the industrial sector was up to 1993 rather limited mainly due to: the relatively small number of industries having heavy energy consumption, low Danish electricity prices, unstable energy prices as well as changes in energy tax.

The introduction in 1993 of CO2 taxes followed by "green taxes" in 1996 in the commercial and industrial sector resulted in considerable interest and numerous establishment of CHP in the industrial sector. Industrial CHP can give a considerable contribution of 3 - 4 per cent point to the fulfilment of the national target of 20 per cent CO2 reduction by year 2005.

Major topics of the paper are:

• Environmental benefits and contribution to the target in the Danish Energy 21 Programme

• Green taxes in the trade and industrial sector

• Incentives and subsidy structure in the green taxation policy

• Industrial CHP competitiveness

Paper

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Panels of

Panel 2: Incentives and instruments to achive greater

Panel 1: Energy Efficiency policies, programmes and their links

Panel 4: Human dimensions of energy use and efficiency

Panel 3: Energy Efficiency options for industry

Panel 5: Energy efficiency in transport