Press Release: State aid: Commission authorises Danish NO X tax reduction for cement industry; opens in-depth investigation into waste tax exemption

The European Commission cleared under EC Treaty state aid rules a Danish proposal to grant certain reductions from a new tax on nitrogen emissions (NO X) for particularly heavy polluters. For industry which would be hit particularly hard by the tax, Denmark proposed two measures: the above mentioned NO X tax relief and a full exemption from the existing waste tax. Currently, only one company active in the cement industry would qualify to benefit from the two exemptions. The Commission concluded that the NO X tax relief was necessary and proportionate and as such in line with EU state aid rules. However, the Commission decided to open an in-depth investigation for the waste tax relief, because it had doubts as to the necessity and proportionality of the aid, in particular since the full exemption would leave the company with no incentive to contribute to the environmental objective of the waste tax. The opening of an in-depth investigation gives interested third parties a possibility to submit comments on the proposed measure. It does not prejudge the outcome of the procedure.