The Denmark Carbon Tax, officially called CO2-afgift, was introduced in 1992 to incentivize reduced energy consumption from carbon-intensive sources and is part of a broader environmental tax package. As of April 1, 2024, the tax is priced at DKR 195.70 (US$28.21) and applies to all greenhouse gas emissions from fossil fuels across various sectors, except electricity covered by the EU ETS. Recent agreements aim to introduce a new CO2 tax for companies starting in 2025, with different rates for those within and outside the EU ETS, while also establishing a floor price for the EU ETS. The government sets the tax price, which is adjusted annually for inflation, and certain energy-intensive industries can claim reimbursements for carbon tax costs.