WORLD TRADE
ORGANIZATIONG/SCM/N/71/EEC/Add.3
18 December 2001
(01-6184)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
EUROPEAN COMMUNITIES
Addendum
The following addendum to the notification of  the European Community relates to subsidy
programmes of Denmark.G/SCM/N/71/EEC/Add.3
Page 2
DENMARK
TABLE OF CONTENTS
Page
I. MINISTRY OF  TRANSPO RT................................................................................................4
1. Environmental grants to fr eight transport by rail.................................................................4
2. State subsidy to postal conveyance of daily newspapers, weekly-, fortnightly-,
monthly- and quarterly magazines..........................................................................................4
II. MINISTRY OF  LABO UR .......................................................................................................5
1. Subsidies to measures to reduce repetitive work (work, which involves a health
risk, etc. due to repeated performance of the same movements during a largepart of the working day). The scheme is administered in accordance with Order
no. 659 of 27 June 1996 issued by the Minister of Labour....................................................5
2. Measures for the benefit of compan ies who employ senior workers....................................6
3. Job training and individual job training under the Act on an active labour
market policy.................................................................................................................. ...........7
III. MINISTRY OF SOCIAL AFFAIRS.......................................................................................8
1. Job training and individual job training under the Act on active social policy. .................8
2. Enterprise allowance ......................................................................................................... .......9
3. Flex-jobs and sheltered jobs................................................................................................. ....9
4. Rehabilitation in an enterprise. ............................................................................................. 10
IV. MINISTRY OF  TAXATION.................................................................................................11
1. The Energy Package (CO
2- and SO 2-taxes)..........................................................................11
V. MINISTRY OF FOOD, AGRI CULTURE AND FI SHERIES ...........................................12
VI. MINISTRY OF BUSI NESS AND INDUS TRY....................................................................62
1. Subsidy notifications 2000 / 2001...........................................................................................6 2
2. Rentestøtteordningen (Interest-subsidy scheme). Supplementary appropriation
request no. 3 from 13 October 1993, approved by the Parliament Finance
Commit tee...................................................................................................................... ..........63
3. Garantifonden for skibsbygning (The guarantee scheme). By Bill no. 209 from
28 April 1993, Bill no. 254 from 19 April 1995 and Bill no. 292 from
28 April 1997. ................................................................................................................. .........64
4. Fragtskibsordningen (Guarantee Scheme for Small Cargo Ships). By Bill no. 618
from 17 November 1976 and Bill no. 385 from 10 June 1997. ............................................64
5. Driftsstøtteordningen (Contract-subsidy scheme). By Bill no. 1009 from
23 December 1998. .............................................................................................................. ....65
6. Business Development Finance (Vækstfonden).  Business Development Finance
Act (Lov om Vækstfonden) ....................................................................................................66
7. Act on maritime education and training (amendment number 388, 10 June
1997). ......................................................................................................................... ...............66G/SCM/N/71/EEC/Add.3
Page 3
8. The Act on stamp duty (amendment number 388, 10 June 1997). .....................................67
VII. MINISTRY OF ENVIRONMENT AND ENERGY, AGENCY FOR NATURAL
FOREST AND NATURE .......................................................................................................68
1. Product Development Scheme for Forestry and Wood Working Industry.......................68
VIII. MINISTRY OF ENVIRONM ENT AND ENERGY, AGENCY FOR
ENVIRONM ENT.................................................................................................................... 69
1. Subsidy scheme for Cleaner Products...................................................................................69
IX. MINISTRY OF ENVIRONMENT AND ENERGY, AGENCY FOR ENER GY .............70
1. Development Programme for Renewable Energy................................................................70
2. Governmental Funding for Energy Research and Technological Development
(Energy Research Programme) (ERP)..................................................................................71
3. Development  and Demonstration of New Energy Technologies........................................714. Subsidy to the Hydrogen Programme (New technologies for renewable energy).............72
5. The Electricity Supply Bill, involving promotion of particular sustainable energy
applications................................................................................................................... ...........72
6. Bill on CO
2 Quotas for Electricity Production.....................................................................73
7. Act on taxes on natural gas and on town  gas.  Measures in favour of the natural
gas sector in Denmark. ......................................................................................................... ..73
8. The possibility to include losses realised on investments in co-ordinated activities
in the price of elec tricity (SEAS-act).....................................................................................74
9. Grant scheme for investment in converting or expanding district heating plants
to the use of biomass fuels for heat or combined heat and power generation...................74
10. Subsidies for Electricity Production......................................................................................75
11. LFC listing fee ............................................................................................................. ............76
12. Subsidy for converting electrical heating systems in residences and public
buildings to combined heat and power and natural gas......................................................76
13. Grants scheme for development, marketing, procurement and utilisation of
electricity saving appliances and equipment.  In 2000 the scheme included
fridges/ freezer, washing and drying clothes and ventilation in schools. ...........................77
14. Governmental subsidy to promote the connection to combined power and heat
distribution systems based on coal (Law No. 420 of 1 June 1994)......................................77
15. Governmental subsidy for substituting of old heating systems in residences to
combined heat and power (Law No. 5 of 3 January 1992)..................................................78
16. Governmental subsidy for product orie nted saving programme (Law No. 129 of
25 February 1998).............................................................................................................. .....79
17. Subsidy scheme for energy-saving measures in pensioners’ residences (Law No.
1050 of 23 December 1992).....................................................................................................7 9
18. Subsidies for energy savings et c. in private companies. ......................................................80
19. Grant scheme for reimbursement of CO 2-tax expenses to enterprises with a high
energy consumption............................................................................................................. ...80G/SCM/N/71/EEC/Add.3
Page 4
I. MINISTRY OF TRANSPORT
1. Environmental grants to freight transport by rail.
1. Form of subsidy
Grants
2. Subsidy payment per unit or total
During 2000 the grants have been distributed thus:
Danish State Railways freight division: DKK  34.358.413
Private Railways in Southern Jutland: DKK       613.379
Local railways: DKK         59.988
Total:                                                                                       DKK  35.031.780
3. The political goal and/or the aim of the subsidies
The political goal is to secure a more en vironmentally sustainable freight transport.
4. Validity period for subsidy scheme
The grants have been distributed in 2000.
5. Statistical information
There is no statistical material available.
In addition to that the Danish National Railways Agency has given a transit grant on
DKK 3 million, cf. government Act no 879 of 4 December 1999, enclosure 3, from which it appears
that the fee for the transit trains are reduced until the opening of the Øresund Bridge.
2. State subsidy to postal conveyance of daily newspapers, weekly-, fortnightly-, monthly-
and quarterly magazines.
1. Form of the subsidy
According to Section 14 of the Postal Activity Act (adopted in February 1995), Danish
Minister for Transport may require that the concessionaire (Post Denmark) must deliver newspapers
and magazines that fulfill certain conditions at special low tariffs from publishers to addressees in
Denmark (Universal Service Obligation).
According Section 14, Subsection 2, the Minister  establishes the criteria to be fulfilled by
papers and magazines wishing to benefit from this arrangement.
According to Section 14, Subsection 3, the State covers the financial loss that concessionaire
might incur due to this tariff arrangement.G/SCM/N/71/EEC/Add.3
Page 5
Section 14, subsection 4, states that the Minister decides the rules according to which the loss
is compensated.  These rules are included in “Accounting Regulations for Post Denmark”, last edition
dated 12 December 1996.
The subsidy is given in direct form every month with 1/12 of yearly budget and regulated
according to the accounts at the end of the year.
As of 1 April 2000, the criteria for access to lower rates were revised to the effect that a
number of magazines were excluded from the arrangement.  Magazines that are also sold in single
pieces at retail stores and are not exempt from VAT in accordance with the “news” criteria of the
Danish VAT Act can no longer benefit from the special tariffs.
2. Subsidy per unit or total
The state subsidy for postal conveyance of newspapers and magazines is a direct subsidy
covering a deficit according to Post Denmark’s accounts.  The subsidy is paid in cash to Post
Danmark from the Treasury by the Ministry of Transport.
The subsidy is treated by Post Danmark as an ordinary revenue.  The subsidy is thus included
merge therefore in normal way in the profit that is taxed and used as a basis of dividend paid to the
state (as sole owner).
3. The political goal and/or the aim of the subsidies
The subsidy is to be considered as a national cultural policy measure.  While establishing the
latest expert committee in the field - The Media Commission of 1993 - it was argued that “ the future
media policy ought to be organised in a way to prevent a dramatic fall in the number of newspapersand to secure the freedom of information and speech plus availability, variety, pluralism and quality
of the presentation and communication of news” (cit. from the 3. reading on the Danish Budget in
Parliament, 3 December 1993.)
4. Validity period for subsidy scheme
The State subsidy is calculated and paid once a year in conformity with the provisions of the
Postal Activity Act.  There is no expiry time for the subsidy system.
5. Statistical information
The subsidy for 2000 will amount to approximately 437 million Danish Kroner (provisional
estimate).
II. MINISTRY OF LABOUR
1. Subsidies to measures to reduce repetitive work (work, which involves a health risk, etc.
due to repeated performance of the same mo vements during a large part of the working
day). The scheme is administered in accordance with Order no. 659 of 27 June 1996
issued by the Minister of Labour.
1. Form of the subsidy
Subsidy.G/SCM/N/71/EEC/Add.3
Page 6
2. Subsidy per unit or total
A total amount of DKK 104 million has been earmarked for this scheme for the period 1994-
1997, to both private and public enterprises, and to training and research institutions. With the
exception of enterprises in the steel industry, the sh ip-building industry, transport, and the coal mining
industry where prior approval from the European Commission is required, subsidies may be granted
to all sectors where such work is found.  As the main rule, subsidies may not be granted to big
enterprises in excess of the de minimis  amounts permitted by the European Commission.  In 2000
total subsidies amounted to DKK 6,957,596.
Subsidies may be granted for activities which aim at doing away with or reducing strains from
repetitive work, including projects concerning j ob development, work organization developments,
technological developments, development of human resources, research and documentation.
It is a condition for payment of subsidies that the enterprises send in an evaluation report for
the purpose of collection and dissemination of the results of the individual projects.
3. Purpose of the subsidy
The objective of this subsidy scheme is to reduce by 50 per cent the extent of repetitive work
by year 2000. In connection with the granting of subsidies to projects, it is taken into account whether
if is possible to transfer the results to other enterprises and work processes.
4. Duration of the subsidy
The deadline for applications for subsidies was 31 December 1997.
5. Assessment of the trade effects
No data are available.
2. Measures for the benefit of companies who employ senior workers
1. Form of the subsidy
Eligible costs include costs related to the reorganization of production methods in ways
favorable to older workers, planning of training for older workers, improvement of working
conditions for older workers, e.g., through the advice of external consultants.
2. Subsidy per unit or total
A total amount of DKK 30,000,000 has been earmarked for this scheme. An estimated 50 to
100 enterprises will receive subsidies under the scheme. A total of DKK 13,072,873 granted in former
years were paid out in 2000. Funds have been exhausted and no new subsidies were granted in 2000.
3. Purpose of the subsidy
The political aim of the subsidy is to support projects aimed at maintaining workers above age
50 on the labour market.G/SCM/N/71/EEC/Add.3
Page 7
4. Duration of the subsidy
The scheme is wound up.
5. Assessment of trade effects
No data available. Trade effects are, however, bound to be extremely modest, as in most cases
a maximum of DKK 750,000 will be paid out to each enterprise.
3. Job training and individual job training under the Act on an active labour market
policy.
1. Form of the subsidy
It is a condition for receiving the wage subsidy concerned that there is a net increase in the
number of employees.  The payment of the subsidy may not lead to distortion of competition.  It is a
general subsidy scheme related to the hiring of certain categories of unemployed insured persons.The scheme is not limited to specific enterprises.
2. Subsidy per unit or total
The total amount of wage subsidy paid out in 2000 was DKK 250.3 million.
3. Purpose of the subsidy
To give unemployed persons who are either long term unemployed or belong to groups at
special risk of becoming long-term unemployed a chance to maintain or re-acquire vocational skillsand/or practical job experience which will enable  them to obtain ordinary (i.e. non-subsidised)
employment.
4. Duration of the subsidy
For persons insured against unemployment and belonging to the risk groups the subsidy may
be paid out in the first year of unemployment.  In this case the maximum subsidy period is 12 months.If the subsidy period exceeds 6 months, the employer shall offer training or shall employ the
unemployed person concerned for a period corresponding to the subsidy period.  The employment
period must in any case be at least 6 months.
For persons insured against unemployment and being in the activation period (i.e. their second
to fourth year of unemployment), the subsidy period may as a maximum be 6 months with the same
employer.
As concerns individual job training, the subsidy period may extend to the whole activation
period.  The above mentioned conditions on training or subsequent employment also apply in this
case.
The scheme has been approved by the European Commission for an unlimited period.G/SCM/N/71/EEC/Add.3
Page 8
5. Assessment of the trade effects
No data available. Trade effects may, however, be judged modest because the scheme is
intended to compensate employers for taking on unemployed persons with an expected productivity
below average and the prevailing wage level.
III. MINISTRY OF SOCIAL AFFAIRS
1. Job training and individual job training under the Act on active social policy.
1. Form of subsidy
Wage subsidy.
The payment of wage subsidies may not lead to distortion of competition.  It is a general
subsidy scheme for unemployed persons and the scheme is not targeted on specific enterprises.
2. Subsidy per unit or total
In 1999 the total amount paid as wage subsidies in connection with job training and individual
job training in private enterprises was DKr. 416 million.
The total amount paid as wage subsidies in connection with job training and individual job
training in private enterprises in 2000 cannot yet be calculated.
3. Purpose of the subsidy
To give unemployed persons who are not insured against unemployment a chance of
maintaining or re-acquiring vocational skills and qualifications that will enable them to obtain
ordinary employment.
4. Duration of the subsidy
As a minimum the period of employment shall be six months.  The wage subsidy period in
job training may as a maximum be six months.  In  individual job training the subsidy period may be
the full period.
In case of employment for more than six month, the employer shall offer training to the
unemployed for a period corresponding to 1/12 of the period of employment, or the employer shall
employ the person concerned without subsidy for a period corresponding to the subsidy period.
5. Assessment of the trade effects
The trade consequences of the subsidy cannot be calculated, as this is a matter of a general
subsidy and not a subsidy to specific enterprises.G/SCM/N/71/EEC/Add.3
Page 9
2. Enterprise allowance
1. Form of subsidy
Allowance of 50 per cent of the latest payment of cash assistance.  The enterprise allowance
can be paid for up to 2½ years to unemployed persons (who are not insured against unemployment)who set up their own business as their main occupation.
As of 1 January 1998 the scheme has been discontinued.  Persons, who were granted
enterprise allowance prior to that date, continue to  receive the allowance.  That means no allowance
should be paid later than June 2000.
2. Subsidy per unit or total
The total amount paid in 1999 to DKr. 36 million. The total amount paid in 2000 cannot yet
be calculated.
3. Purpose of the subsidy
To support unemployed persons who want to set up their own enterprise as their main
occupation.
4. Duration of the subsidy
The enterprise allowance has been established as a scheme according to de minimis  rules.
5. Assessment of the trade effects
It is not possible to calculate the trade consequences, as it is a general support scheme and not
support to specific enterprises.
3. Flex-jobs and sheltered jobs.
1. Form of subsidy
Flex-jobs and sheltered jobs are offered to people who, because of a permanent partial
impairment, are not able to maintain or obtain work on normal terms of employment.
In connection with flex-jobs the employer receives a wage subsidy, which corresponds to the
degree of the persons impairment.
In connection with sheltered jobs the employer receives a wage subsidy of half the wages paid
to the employee.  The subsidy may as a maximum be 1/6 of the minimum wages agreed upon in the
collective agreement.
2. Subsidy per unit or total
The total amount paid in wage subsidies in connection with flex-jobs in 2000 in both the
private sector and the public sector is estimated to DKr. 770.9 million. In connection with sheltered
jobs the expenses is estimated to be DKr. 86.6 million.G/SCM/N/71/EEC/Add.3
Page 10
3. Purpose of the subsidy
To give partially impaired people, who are not able to maintain or obtain work on normal
terms of employment, a chance to maintain a connection to the labour marked through jobs on flexible
terms of employment.
4. Duration of the subsidy
Both flex-jobs and sheltered jobs are meant to be permanent jobs.  The subsidy is paid
throughout the period of employment.
5. Assessment of the trade effects
It is not possible to calculate the trade consequences, as it is a general support scheme and not
support to specific enterprises.
4. Rehabilitation in an enterprise.
1. Form of the subsidy
Rehabilitation in an enterprise is offered to pa rtially impaired people in order to enable them
to provide for themselves and their family in the future, i.e. to work in open employment.
Rehabilitation in an enterprise consists of retraining or education in a private or public
enterprise.  The wages paid to the person undergoing rehabilitation are at least the minimum wage
according to the collective agreement.
The employer receives a subsidy, which in connection with education amounts to the
difference between the wages normally paid to a person during education at a workplace, and the
wages the employer is paying to the person undergoing rehabilitation.
In connection with retraining the subsidy amounts to the difference between the wages that
corresponds with the work performed and the actually paid wages.
2. Subsidy per unit or total
The total amount paid in wage subsidies in connection with rehabilitation in 2000 cannot yet
be calculated.
3. Purpose of the subsidy
To help partially impaired people to acquire (other) vocational skills and qualifications in
order to enable them to provide for themselves and th eir family in the future, i.e. to work in an open
employment.
4. Duration of the subsidy
There is no set limit to the duration of rehabilitation in an enterprise and the payment of the
subsidy. However, it is presupposed that the duration of the rehabilitation should be as short aspossible.G/SCM/N/71/EEC/Add.3
Page 11
5. Assessment of the trade effects
It is not possible to calculate the trade consequences, as it is a general support scheme and not
support to specific enterprises.
IV. MINISTRY OF TAXATION
1. The Energy Package (CO 2- and SO 2-taxes)
1. The relevant EU-legislation is the EU-Treaty, Article 87(3c).
The relevant national legislation is:
- Law no. 417 of 14 June 1995 (CO 2-tax)
- Law no. 421 of 14 June 1995 (SO 2-tax)
The CO 2-tax
The rate of the CO 2-tax is DKK 100 per tonne CO 2 discharged when the energy products are
combusted.  On 1 January 1996, the CO 2-tax on energy consumption in trade and industry in
Denmark was increased and the scope of the tax was enlarged.  The tax rate is gradually increasinguntil year 2000 as the reimbursement to industry is reduced annually.
The CO
2-tax is reimbursement differently to businesses registered for VAT depending on the
energy intensity of the different processes.  When the CO 2-tax is fully implemented in year 2000,
75 per cent of the CO 2-tax will be reimbursed for energy intensive processes.  For processes which are
not energy intensive 10 per cent of the CO 2-tax will be reimbursed in year 2000. For energy products
used for heating purposes no reimbursement are made.  Companies entering into agreements with the
Ministry of Energy can get further reductions in the CO 2-tax when undertaking an energy saving
action plan.
The SO 2-tax
The SO 2-tax on all energy products was introduced on 1 January 1996.  The rate is
DKK 10 per kg SO 2 discharged into the air or DKK 20 per kg S(ulphur) in the energy product.
A reduction in the SO 2-tax for coal is given to energy intensive businesses, which have
undertaken an energy saving action plan.
The revenue from the CO 2- and SO 2-taxes
The revenue from the CO 2- and SO 2-taxes is lead back to trade and industry as investment
grants and as subsidies to the payment of the CO 2-tax if the company has undertaken the above
mentioned action plan and made an agreement with the Ministry of Energy. Furthermore the revenue
is spent on a general reduction in the taxes on labour (social contributions of the employers).
The Energy Package has been notified to the EU-Commission and the State Aid aspects have
been examined. There are no net gains intended in the scheme. Since the reimbursements are available
on the basis of the energy intensity to all companies, regardless of sector or region concerned andG/SCM/N/71/EEC/Add.3
Page 12
since the authorities do not have any discretionary power in the granting of reimbursements, the EU-
Commission has accepted the scheme.
2. The Energy Package was fully introduced in year 2000.  The recycled revenue was app.
DKK 2.8 billion.
3. The environmental aim of the Danish energy tax policy is to support international endeavours
to reduce emissions of carbon and sulphur and to conform nationally and internationally to agreed
environmental targets.
4. In 1998 there was a general review of the Energy Package.  The main conclusions are
summarised below.
♦ The Energy Package contributes substantially to the reduction in Danish CO 2-emissions.
♦ Companies with reductions in net CO 2-tax rates are net losers.
♦ In total business and industry has had an increased tax burden corresponding to 0.01 per cent of
the value added in 1996 and 0.00 per cent in 1998. In 2000 business and industry will have an
estimated gain corresponding to 0.03 per cent of the value added.
As a consequence the evaluation has led to minor changes in the scheme, which do not
change the level of aid granted.
5. There is no overall impact on competitiveness.  The fiscal burden minus investment grants is
in most sectors less than 1 per cent of the value added.  The arrangement is a partial compensation for
the increased fiscal burden, which the national CO 2- and SO 2-taxes place on trade and industry in
Denmark.
V. MINISTRY OF FOOD, AGRICULTURE AND FISHERIES
Introduction:
This notification covers in principle all national aid to the Danish agricultural and fisheries
sectors in the fiscal years 1999 (1 January – 31 December) and 2000 and the budgeted amounts for the
fiscal year 2001. Consequently, the measures and programmes included are notified irrespective of
whether they themselves warrant a notification under Article 25 of the SCM-Agreement.  The fact
that they are notified does not imply that they are “specific” or that they have any effect on trade.
The notification follows the outline suggested by the WTO and uses the following format:
(1) Title of programme in English
Title of programme in Danish
(2) Article in The Finance Act
(3) Form of subsidy
(a) Grants(b) Tax relief
(c) Subsidies financed by recycled revenues from taxes and duties
(d) Subsidised rents
(e) Loans at a lower rentG/SCM/N/71/EEC/Add.3
Page 13
(f) Guaranties
(g) Other forms of subsidies and financing of working capital for public service
companies
(4)  Amount used on the programme in 1999(F: Final), 2000(E: Estimated), 2001
(B: Budget)
(5)  Policy objective of the programme
(6)  Duration
(7)  Statistical data (estimate of trade effects)
(8)  Legal basis (Act or Order)(9)  Rules and conditions (for obtaining aid under the programme)
(10) The number of new receivers of subsidy and new subsidy arrangements plus an
estimate of the number of new or preserved places of work
A number of the programmes included are the national implementation of Community
programmes (e.g. the accompanying measures), and are partly financed by the Community, partly byDenmark.  In order to make them easily distinguishable from the purely nationally financed
programmes, they are listed under a separate heading.
Table of contents:
Agriculture:
1: Income support programmes
1.1 Refinancing of mortgage loans etc. in agricultural holdings
1.2 Subsidy to agricultural indexed loans granted in connection with refinancing of mortgage
loans
1.3 Subsidy to payment to agricultural indexed loans1.4 Debt rescheduling scheme for farmers
1.5 Debt reorganisation for farmers
1.6 Aid scheme to benefit less-favoured agricultural areas
2: Structural programmes
2.1 Young Farmers' Scheme
2.2 Land consolidation programme
2.3 Workmen’s houses in rural areas
3: Environmental programmes
3.1 Agricultural investments with the aim of  protecting and improving the environment
3.2 Guarantee for loans for agricultural investment s with the aim of protecting and improving the
environmentG/SCM/N/71/EEC/Add.3
Page 14
4: Measures to compensate for losses due to damage to agricultural production or means of
production
4.1 Guaranteed “drought loans” with repayment subsidy (1992)
4.2 Control of animal diseases and salmonella in poultry
4.3 Storm damage aid scheme
5: Research
5.1 Public Agricultural and Fishery Research Institutions6: General measures
6.1 Promille Levy Funds and Production Levy Funds
6.2 Aid to product development of agricultural and fishery products
6.3 Advisory services in agriculture
7: Community-related programmes
7.1 Aid for investments in animal welfare
7.2 Co-operation with recognised groups
7.3 Vocational training in agriculture
7.4 Environmentally friendly farming
7.5 Early retirement from farming
7.6 Establishment of shelter belts
7.7 Organic farming
7.8 Investments for improving the processing and marketing conditions for agricultural and
forestry products
7.9 Development of specific rural areas
8. Other programmes
8.1 Farm Relief Services
8.2 Control of Mastitis and other veterinary measures
8.3 Measures to improve the production of honey
8.4 Subsidy to certified lots of cereal seeds and seeds of beet, fodderplants, oil and fibre plants
Fisheries:
9.1. Fishing Vessels - permanent cessation*
9.2. Fishing from the coast (hauling up vessels)G/SCM/N/71/EEC/Add.3
Page 15
9.3. Processing*
9.4. Advisors for Fishery and Aquaculture
9.5. Construction of vessels*
9.6. Aquaculture*
9.7. Modernisation of fishing port facilities*
9.8. Market promotion for fishery and aquaculture products*
9.9 Loans to young fishermen
9.10 Preretirement of fishermen*
9.11 PESCA*
9.12 Modernisation of fishing vessels*
9.13 Pound net fishermen
9.14 Experimental fishing and fish processing development
9.15 FØTEK (Fishery)
9.16 Innovative actions etc.*
*: Programmes with Community co-financingG/SCM/N/71/EEC/Add.3
Page 16
1.1
1. Refinancing of mortgage loans etc. in agricultural holdings
Refinansieringsordningen for landbruget
2. FFL§ 24.24.44Form no.: SG(88) D/14509
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
e4.
57.64.
40.14.
47.7
5. To ease the financing costs for farmers by rescheduling existing loans to new long-term low interest
loans.
6. Last date for application: 15 December 1989. Term of loans: 10 or 30 years.
7. The programme has no effects on trade.
8. Act No. 372 of 11 July 1988
9. To be eligible for refinancing the applicant had to have agriculture as main occupation, have a dept
percentage of more than 30 and have economic survival capability. The government took over thedebt commitments for the loans in question, and in  return the farmers undertook commitments for
new low-interest mortgage loans (approximately 2/3 of the interest of ordinary mortgage loans) or
indexed loans.
10. Estimates are not available.
Other: Aid is no longer available.G/SCM/N/71/EEC/Add.3
Page 17
1.2
1. Subsidy to agricultural indexed loans granted in connection with refinancing of mortgage
loans
Statsligt afdragsbidrag til jordbrugslån i forbindelse med refinansieringsordningen for landbruget
2. FFL§ 24.24.45Form no.: SG(88) D/14509
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
d4.
4.44.
4.64.
0.8
5. To ease the financing cost for farmers by reducing the payment on certain indexed loans.
6. Last date for application: 15 December 1989. Financial commitments for 10 or 15 years depending
on term of loan.
7. The programme has no effects on trade.
8. Act No. 372 of 11 July 1988
9. The subsidy corresponds to 15 per cent, 25 per cent or 30 per cent of the annual indexation of the
loan, depending on the applicant's debt percentage at the time of application.
10. Estimates are not available.
Other: Aid is no longer available.G/SCM/N/71/EEC/Add.3
Page 18
1.3
1. Subsidy to payment of agricultural indexed loans
Jordbrugslån med afdragsbidrag
2. FFL§ 24.24.53Form no.: SG(86) D/4116
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
e4.
2.84.
2.94.
3.9
5. To reduce the financing costs in agriculture by subsidising the payment on certain indexed loans.
6. Last application year: 1990. Financial commitments for 15 years.
7. The programme has no effects on trade.
8. Legal basis: Acts No. 841 and No. 850 of 20 December 1989; Act No 417 of 13 June 1990
9. Aid is no longer available. The subsidy corresponds to 30 per cent of the indexation of the loan.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 19
1.4
1. Debt rescheduling scheme for farmers
Gældssaneringsordningen
2. FFL§ 24.24.41.20Form no.: SG(93) D/7970
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National funding:
Discharge for
defaulting debtors:
State guarantees
outstanding:3.
d + f4.
0.0
0.0
19.14.
0.2
0.2
16.74.
0.2
0.2
14.2
5. To assist farmers in need of debt rescheduling due to financial crisis.
6. Last application year: 1983. Term of loans: 13-23 years.
7. The programme has no effects on trade.
8. Legal basis: Act No. 131 of 9 April 1980
9. Aid is no longer available.
For a loan with a maximum size of DKK 0.7 mill. per applicant, a guarantee of 80 per cent is granted
with an interest subsidy for the first 3 or 5 years.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 20
1.5
1. Debt reorganisation for farmers
Gældssaneringsordning
2. FFL§ 24.24.41.30Form no.: SG(93) D/7970
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National funding:
Discharge for
defaulting debtors:
State guarantees
outstanding:
Premiums paid:3.
f4.
52.7
52.7
1,675
21.64.
39.0
41.9
1,492
15.84.
22.7
22.7
1,000
10.7
5. To ease the future interest burden and improve the availability of funds through rescheduling of
short-term high interest loans.
6. Last date for application: 1 April 1994. Term of loans: 15 years.
7. The programme has no effects on trade.
8. Legal basis: Act No. 268 of 6 May 1993 as amended by act No. 1108 of 22 December 1993.
9. Aid is no longer available.
To be eligible for a loan, the applicant must have agriculture as main occupation, a debt percentage
of at least 70 and economic survival capability. The mortgage loans are between DKK 75,000 and1,200,000 per farm. A levy of 1 per cent of the balance of the loan is payable to the state.
10. Estimates are not available
Other:G/SCM/N/71/EEC/Add.3
Page 21
1.6
1. Aid scheme to benefit less-favoured agricultural areas
Tilskud til jordbrugere på visse småøer
2. FLL§ 24.23.03.20Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
1.64.
1.64.
2.7
National financed3.
a4.
5.94.
6.14.
8.0
5. The aim is to give compensatory allowance to farmers in the less favoured areas. The less favoured
areas are the islands Ærø, Samsø, Læsø, Fanø and 27 small islands under the association of small
islands in Denmark.
6. The grant is a yearly compensatory allowance in accordance to a yearly application.
7. The programme has no effects on trade.
8. Legal basis: Act. No. 338 of 17 Ma y 2000. Council Regulation (EC) No 1257/1999.
9. In order to receive the compensatory allowance th e farmer has to be resident on one of the islands,
that are appointed as less favoured areas.The grant is given to area- and livestockunits and the maximum number of eligible units are 120.
The maximum grant per farmer is approximately DKK 67,000.
10  In 1999 there has been 9,610 eligible area units and 4,488 eligible live stock units on about 500
farms.
Other:G/SCM/N/71/EEC/Add.3
Page 22
2.1
1. Young Farmers’ Scheme
Yngre jordbruger ordningen
2. FFL§ 24.24.05Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
38.84.
38.54.
43.0
National funding:
Discharge for
defaulting debtors:
Direct aid:
State guarantees
outstanding:3.
a
+
d
+
f4.
70.010.9
59.1
1,8284.
81.621.7
59.9
2,0674.
82.314.5
67.8
2,254
5. To encourage and ease the generational transition in the agricultural sector.
6. Permanent scheme. Term of loans 20 years. Direct aid 7 years.
7. The programme has no effects on trade.
8. Legal basis: Act No. 606 of 6. June 2000.
9. The State warrants a loan of a maximum amount of DKK 500,000 depending on the value of the
holding. Interests and repayment are wholly or in part paid by the State during the first seven years
of its term. To be eligible, the applicant must be below 40 years of age, start in agriculture as main
occupation and fulfil certain conditions regarding education and capital.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 23
2.2
1 Land consolidation programme
Jordfordeling
2. FFL§ 24.21.01.10Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
g4.
22.94.
24.34.
19.5
5. To improve the physical structure of farm holdings by re-allotment through land consolidation.
6. No limit.
7. Estimates are not available.
8. Legal basis: Order No. 902 of 11 October 1996.
9.
10. Estimates are not available.
Other:
2.3 Workmen’s houses in rural areas: Scheme expiredG/SCM/N/71/EEC/Add.3
Page 24
3.1
1. Agricultural investments with the aim of protecting and improving the environment
Miljøforbedrende investeringer i landbruget, investeringstilskud
2. FLL§ 24.23.45.10Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
.a4.
34.24.
29.04.
0.0
5. Aid to farmers investing in storage facilities sufficient to meet the requirements concerning the
spreading and utilisation of manure in the fields.
6. Last application date: 31 March 1996 (for some groups 31 December 1996). Aid is paid as a lump
sump, except for investments above DKK 85,000 in single-farm storage facilities, where the aid is
granted over a period of 10 years.
7. The programme has no effects on trade.
8. Legal basis: Act No. 16 of 14 January 1987 as amended.
9. To be eligible the local authorities must approve of  the capacity of storage facilities. The aid granted
is 35 per cent or 25 per cent of investments in storage facilities.
Maximum: DKK 150,000. 40 per cent of investments in co-operative facilities for processing of
manure (bio-gas etc.) Maximum: DKK 150,000 per agricultural holding supplying the facility.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 25
3.2
1. Guarantee for loans for agricultural investment s with the aim of protecting and improving the
environment
Miljøforbedrende investeringer i landbruget, garanti for lån
2. FLL§ 24.23.45.20Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National funding:
Discharge for
defaulting debtors:
State guarantees
outstanding:3.
f4.
1.7
1.7
19.04.
0.5
0.5
16.64.
0.4
0.4
13.9
5. Aid to farmers investing in storage facilities sufficient to meet the requirements concerning the
spreading and utilisation of manure in the fields.
6. Last date for application: 31 March 1996 (for some groups 31 December 1996). Term of loans: 15
years.
7. The programme has no effects on trade.
8. Legal basis: Act No. 16 of 14 January 1987, as amended.
9. To obtain a guarantee the investment must be approved by the local authorities and supported under
the scheme “Agricultural investments with the aim of protecting and improving the environment”.Guarantee of 80 per cent of loans with a maximum of DKK 400,000.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 26
4.1
1. Guaranteed “drought-loans” with repayment subsidy (1992)
1992-tørkehjælpsordningen
2. FFL§ 24.24.43Form no.: SG(93) d/32912
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National funding:
Discharge for
defaulting debtors:
State guarantees
outstanding3.
f + d4.  
0.6
0.5
32.74.
0.5
0.3
25.14.
0.3
0.3
17.2
5. To ease the consequences of the 1992-drought by subsidising the farmers who suffered the most.
6. Last date for application: 1 May 1993. Term of loans: 10 years
7. The programme has no trade effects.
8. Legal basis: Act No. 918 of 25 November 1992
9. To be eligible for a loan the applicant must have agriculture as main occupation, have a drought-
induced loss of at least 30 per cent and have a debt percentage of at least 50. Maximum loan: DKK 1
million. Repayment subsidy is only granted to applicants having a debt percentage of at least 65. The
subsidy is granted over a 5-year period, decreasing over the last 3 years.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 27
4.2
1. Control of animal diseases and salmonella in poultry
Erstatning m.v., bekæmpelse af salmonella i fjer kræ samt erstatninger ved nedslagning af dyr og
andre udgifter ved bekæmpelsesforanstaltninger
2. FFL§ 24.32.12./14.Form no.:
Bekæmpelse af smitsomme sygdomme: Form
no.: 20-00/009/00. Statsstøttesag no.: N
209/98
Bekæmpelse af salmonella i kyllinger og
konsumæg : Statsstøttesag nr.: 709/96 og N
134/2000
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4
12.54.
2.14.
1.8
National financed3.
a4.
14.14.
6.44.
18.3
5. In relation to control of animal diseases and zoonoses compensation is paid for animals, feed etc.
Destroyed as part of the control programmes. Partly compensation is paid for loss of profits due to
this destruction.
6. The programme for control of animal diseases is permanent, whereas the programme for control of
salmonella in poultry is limited to 2002.
7. The programmes have no effects on trade.
8. The programmes are based on Law no. 351 1999.
9. Compensation is paid for animals, feed etc. destroyed as part of the control programmes. Partly
compensation is paid for loss of profits due to this destruction.
10. The programmes have no effects on employment.
Other:G/SCM/N/71/EEC/Add.3
Page 28
4.3
1. Storm damage aid scheme
Støtte efter orkan skader 3. - 4. December 1999
2. FFL§ 24.23.42Form no.: N 195 & 214/ 2000
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
a4.
-/-4.
4.04.
2.0
5. To ease to consequences of the storm 3. - 4. December 1999 who flattened vast areas of fruit trees.
6. Is due to run in 2000, 2001 and 2002.
7. The programme has no effects on trade.
8. Legal basis: Act. No. 860 of 18 September 2000. (ECC treaty art. 87, 2, b.).
9. In order to receive the aid, 35% of the fruit trees on 0.5 ha must be damaged. Maximum aid is 75%
of the replanting cost for prunes and cherries, and 37.5% of the replanting cost for apples etc.
10. It is estimated that 100 farmers will have the right to receive support.
Other:G/SCM/N/71/EEC/Add.3
Page 29
5.1
1. Public Agricultural and Fishery Research Institution
Landbrugs- og fiskeriforskning
2. FFL§ 24.33.03, § 24.32.21, § 24.32.25,
§ 24.33.13, § 24.33.15, § 24.38Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
g4.
460.14.
437.54.
444.4
5. The sector research institutions are:
• Danish Institute of Agricultural Sciences
• Danish Institute of Agricultural and Fisheries Economics
• Danish Pest Infestation Laboratory
• Danish Institute for Fisheries Research (incl. other fishing research Institutions)
• Danish Veterinary Institute for Virus Research
• Danish Veterinary Laboratory
The Danish Institute of Agricultural Sciences  has the objective to carry out research, to gather and
collate knowledge valuable for plant production, commercial animal farming and use of
agricultural techniques in Denmark, and to contribute to a fast and reliable communication of theresults.
The Danish Institute of Agricultural and Fisheries Economics  collects account statistics for
agriculture, horticulture and fisheries and conduct research on agricultural and fisheries economic
conditions.
The Danish Pest Infestation Laboratory  has as its objective to carry out research, experiments and
control, collecting knowledge concerning pest in order to optimise the combat of pest. Doing so the
Laboratory shall still consider the effects on the environment, examining alternative
combat/methods and contributing to an efficient and safe propagation of results to its users.
The Danish Institute for Fisheries Research  conducts researches within fish and shellfish resources,
their environment their exploitation by fishing or fish farming, and finally the preparation and
processing of products.
The Danish Veterinary Institute for Virus Research  contributes to the prevention and eradication of
animal viral diseases, including foreign (‘exotic’) diseases which may pose a threat to the export of
animal products.
The Danish Veterinary Laboratory  has as its objective to promote animal health and thus facilitate
the production of healthy animal foodstuffs. The Institute manufactures and sells vaccines and sera
for veterinary use. The Institute is part of the Danish veterinary contingency plan.
6. The Schemes are permanent.
7. The programmes have no effects on trade.
8. The legal basis for the schemes are The Finance Act (FFL§ 24.33.03, FFL§ 24.32.21, FFL§
24.32.25, FFL§ 24.33.13, FFL§ 24.33.15, FFL§ 24.38).
10. The programmes have no effects on employment.G/SCM/N/71/EEC/Add.3
Page 30
6.1
1. Promille Levy Funds and Production Levy Funds
Promille- og produktionsafgiftsfonde
2. FFL§ 24.24.51Form no.: N681/98
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
a
c4.
228.9296.34.
267.2365.14.
284.2362.9
5. Recycled revenues from Danish taxes on pesticides finance the Promille Levy Funds. The means
from the Promille Levy Funds are used to subsidise the different Production Levy Funds (i.e.
Professional funds).The purpose of the system of the Promille Levy Funds and the Production Levy Funds are to
contribute to the financing of common activities in  sectors of agriculture and gardening regarding
sales promotion, research, production development, advising, training, prevention of diseases etc.
6. Scheme is permanent.
7. The measures being general, they have no trade effects possible to assess.
8. The Promille Levy Funds, first set up in 1978 are today based legally on code no. 818 of 3rd
November 1999 on the administration of the European Community's regulation on market systems
for agricultural products etc.
9. The Production Levy Funds use revenues which, beside the subsidy from the Promille Levy Funds,
consist of parafiscal production levies, and are used to finance activities such as sales promotion,research, advising, education etc. in accordance with code no. 818, Article 7.
The system of the Promille and Production Levy Funds has existed since 1978 and is based on 1-
year-budgetting. The budgets are approved by the Ministry and must meet all the legal requirements
at both national- and EU-levels.G/SCM/N/71/EEC/Add.3
Page 31
6.2
1. Aid to promote development of agricultural and fishery products
Produktudvikling af jordbrugs- og fiskeri produkter
2. FFL§ 24.23.17.10Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
a4.
174.64.
290.04.
150.1
5. To promote the development of activity in primary agriculture and the manufacturing sectors of
agriculture and fisheries.
6. The scheme will be revised in 2001-02.
7. Estimates on the effects on trade are not available.
8. Legal basis: Act No. 421 of 31. May 2000.
9. Aid can be given to commercial exploitation of the results of development projects. It is given:
1) to development of new products in primary agricultural and fisheries sector,
2) to the development of processed products in agricultural and fishing industry,
3) to the marketing of products from the agricultural and fishery sector, and4) to the development of organic agriculture and fishery.
Re point 1)  A subsidy of 40 per cent of the additional expenses of the project is granted. 50 per cent
of the additional expenses can be subsidised, if the project concerns organic production, or the value
of the applicant's own work constitutes a significant part of the expenses, or the project is a pilot
project. Maximum aid: 12.500 ECU. It is a condition that the applicant possesses the necessary skills
to carry out the project. It is also a condition that  the subsidy is necessary for the initiation of the
project. The project must also have a genuine novelty value for the agricultural sector.Re point 2)  A subsidy of 40 per cent of the additional expenses is granted. If a number of conditions
exist 50 per cent of the expenses can be subsidised up to a maximum of 100.000 ECU. The
conditions are that more than 50 per cent of total expenses concern basic scientific research, or that
the project concerns development of organic agricultural products, or that the project is a pilot
project conducted by a small or medium sized enterprise. More than 50 per cent of the expenses canbe subsidised, if the project is carried out by a research or development institution. It is a condition
that the subsidy is necessary for the initiation of the project and that the project represents a genuine
novelty value for the agricultural sector. The project must also represent an expansion of the total
development activities of the applicant.
Re point 3)  A subsidy of maximum 50 per cent of the additional expenses is granted. The project
must represent an expansion of the total marketing activities of the applicant and aid must be of
substantial significance for the project. When certain conditions are met, there is no general
maximum aid in absolute figures.
Re point 4)  The funding is used in a broad variety of ways concerning information, advising,
organic projects and to promote the dail y use of organic products in institutions.
As a general rule aid is repayable, if the results of the project are used commercially. If, however, a
sector as a whole (or, part of it) benefits from the subsidised activity the aid is not repayable.G/SCM/N/71/EEC/Add.3
Page 32
6.3
1. Advisory services in agriculture
Tilskud til jordbrugets konsulentvirksomhed
2. FFL§ 24.22.01Form no.: SG(96) D/4532
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
0.44.
0.34.
National financed3.
a4.
138.44.
140.24.
120.7
5. To further the extension of new techniques of production and management and to ensure that
farmers are offered low-cost advisory services within specific relevant productions.
6. Permanent.
7. The programme has no direct effects on trade.
8. Legal basis: Act No. 813 of 21 December 1988 as amended by Act No. 296 of 24 April 1996.
9. A number of agricultural advisory services can receive a maximum of 50 per cent of the wage
expenditure, within specific approved consultancy-programmes.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 33
7.1
1. Aid for investments in animal welfare
Støtte til visse investeringer i dyrevelfærd
2. FFL§ 24.23.05Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
73.34.
78.14.
35.0
National financed3.
d4.
218.64.
232.54.
107.4
5. To improve the conditions on holdings by supporting investments.
6. Permanent scheme.
7. The programme has no effects on trade.
8. Legal basis: Act No. 338 of 17. May 2000. Council Regulation (EC) No 1257/1999.
9. To be eligible the applicant must have agriculture as main occupation, be in need of support, and
present an investment plan. For animal welfare in vestments in agricultural buildings, an annual
subsidy of 4 per cent is granted for 10 years. For other investments in animal welfare, an annual
subsidy of 2.5 per cent is granted for 7 years. For new entrants below 40 years of age subsidies are
increased to 5 per cent respectively 3 per cent
10. Estimates not available.
Other:G/SCM/N/71/EEC/Add.3
Page 34
7.2
1. Co-operation with recognized groups
Etablering af samarbejde
2. FFL§ 24.23.05.20Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
a4.
0.14.
0.34.
5. To encourage co-operation between farmers with a view to achieve e.g. a more rational joint use of
agricultural means of production.
6. The scheme has not been prolonged, and therefore runs no further than 1999 (2000).
7. The programme has no effects on trade.
8. Legal basis: Act No. 198 of 9 April 1986, as  amended. Implementing EEC Regulation 950/97.
9. To be eligible for support, the conditions of the co-operation must be approved. Aid to
administrative costs in launching of co-operation is  available within a ceiling of approximately DKK
135,000.
10  Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 35
7.3
1. Vocational training in agriculture
Efteruddannelse inden for jordbrugserhvervene
2. FLL§ 24.23.03.10Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
1.04.
1.64.
2.1
National financed3.
a4.
3.14.
7.94.
7.4
5. To further the vocational training in agriculture.
6. Permanent scheme
7. The programme has no effects on trade.
8. .Legal basis: Act No. 338 of 17 May 2000. Council Regulation (EC) No 1257/1999.
9. Aid is granted for a maximum of 60 per cent of the costs for courses with at least 3 continuous days
of instruction or 3 instruction days with the same group of participants, unless the instructionconcerns certain compulsory subjects.
10  Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 36
7.4
1. Environmentally friendly farming
Miljøvenlige jordbrugsforanstaltninger
2. FFL§ 24.23.04Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
20.14.
24.34.
18.2
National financed3.
a4.
20.14.
24.34.
18.3
5. To encourage environmentally friendly extensive cultivation of the areas and to minimise the risks of
pollution of the ground water resources.
6. Permanent programme.  The present budget period (EU co-financing) runs until 2000.
7. The programme has no effects on trade.
8. Legal basis: Act No. 338 of 17 May 2000. Council Regulation (EC) No 1257/1999.
9. An annual subsidy of between DKK 500 and 5,000 per hectare (depending on the purpose, the year,
and possibly the yield level) is granted for 5 years (20 years for set-aside of arable land). The grant
also depends on whether the area in question is situated in an environmentally sensitive agricultural
area.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 37
7.5
1. Early retirement from farming
Ophørsordningen
2. FFL§ 24.23.50Form no.: SG(95) A/18690
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
11.84.
12.04.
0.0
National financed3.
g4.
12.24.
11.84.
0.0
5. To secure the income of elderly farmers, who stop farming, and to improve the economic viability of
the remaining farm-holdings by letting them take  over the holding participating in the early
retirement scheme.
6. The scheme was open for new applicants from 1 January through 31 December 1998. Financial
commitments for up to 12 years hereafter.
7. The programme has no effects on trade.
8. Legal basis: Act No. 676 1995. Council Regulation (EEC) No 2079/1992.
9. To be eligible the applicant must be at least 55 years of age and have had agriculture as main
occupation in the preceding 10 years. The subsidy is granted from the time of retirement to the
applicant’s 67th birthday. It consists of an annual compensation of DKK 37,392 and an annualallowance of DKK 2,337 per hectare of released land, within a ceiling of DKK 93,480 a year.
10 In 1999 there were no new applicants due to the closure of the scheme.
Other:G/SCM/N/71/EEC/Add.3
Page 38
7.6
1. Establishment of shelter belts
Læhegn
2. FFL§ 24.23.03.50Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
12.34.
13.44.
4.7
National financed3.
a4.
24.34.
25.04.
15.9
5. To prevent sand drift and through allocation of subsidies to obtain economic as well as planning,
preservation and environmental purposes.
6. Permanent
7. The programme has no effects on trade.
8. Legal basis: Act. No. 338 of 17 Ma y 2000. Council Regulation (EC) No 1257/1999.
9. For collective establishment of shelter belts: A maximum of 70 per cent of expenditure. For
individual establishment of shelter belts the subsidy granted is 50 per cent of the costs of the plants.
10  Estimates are not available.G/SCM/N/71/EEC/Add.3
Page 39
7.7
1. Organic farming
Økologisk jordbrug
2. FFL§ 24.23.03.45 / FFL§ 24.23.17.40Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
57.54.
. 81.24.
71.8
National financed3.
a4.
139.84.
256.54.
100.3
5. The aid is given to facilitate the transition and improve the conditions for organic farming.
6. Period for the present programme: 1994-99. Financial commitments for up to 5 years hereafter.
7. The programme has no effects on trade.
8. Legal basis: Act No. 881 of 11 December 1998. Implementing EEC Regulation 2078/92
9. It is a condition that the entire holding is converted to organic farming within four years from the
beginning of the conversion. It is also a condition that the organic production on the holding is
maintained for at least 5 years. Aid is given to:
1) The individual organic farm for a five year period.
2) A general premium of DKK 600 continuing or ganic cultivation and DKK 450 during conversion
to organic production (2 years) is paid per hectare each year.
Additional premia are paid to specific measures (to convert the organic pig and grain production)
or to areas within the environmentally sensitive agricultural areas.
3) Projects to further the development and improve the conditions of organic production. Subsidy is
granted for 40 per cent of the expenses. Research projects and projects, which make information
on organic farming more accessible, can be granted a higher rate of subsidy than 40 per cent
10 In 1999 there were approximately 1.050 applicants to the organic farming scheme, concerning
conversion to organic farming.
Other:G/SCM/N/71/EEC/Add.3
Page 40
7.8
1. Investments for improving the processing a nd marketing conditions for agricultural and
forestry products
Projektstøtteordningen
2. FFL§ 24.23.03.15Form no.: SG(91) D/0745
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
32.94.
34.24.
21.4
National financed3.
a4.
19.54.
13.54.
21.4
5. To improve the processing and marketing conditions for agricultural and forestry products.
6. Period of present programme: 2000 – 2006.
7. An improvement of conditions for processing and marketing is assumed to imply more competitive
products. However, the trade effects cannot be quantified.
8. Legal basis: Act. No. 338 of 17 Ma y 2000. Council Regulation (EC) No 1257/1999.
9. To be eligible, the investors must manufacture ag ricultural or forestry products. Maximum aid of up
to 17.5 per cent of the eligible investment.
10  Estimates are not available.G/SCM/N/71/EEC/Add.3
Page 41
7.9
1. Development of specific rural areas
Tilskud til fremme af udviklingen i særlige landdistrikter, Mål 5b og Leader II
2. FFL§ 24.23.15Form no.: SG(95) D/11196
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
27.74.
31.64.
4.4
National financed3.
a4.
27.64.
36.74.
4.4
5. To improve the development of specific rural areas by means of subsidising the improvement of
methods of production, devel opment of new products etc.
6. Period of present programme: 1994-99.
7. The programme has no effects on trade.
8. Legal basis: Act No. 479 of 12 June 1996, as amended by Act No. 404 of 10 June 1997. Council
Regulation (EC) 950/97.
9. It is a condition for support that the holding is  situated in designated rural areas and that the
investments contribute to local development. A subs idy of up to 50 per cent is granted at a maximum
of DKK 650,000 per holding.
10  The programme has a positive effect on employment. Estimates of new or preserved jobs are not yet
available. An ex-post evaluation of the scheme is currently being prepared. An estimate of the effecton employment will be submitted in next year’s report on subsidies and state aid.G/SCM/N/71/EEC/Add.3
Page 42
8.1
1. Farm Relief Services
Tilskud til vikarordninger
2. FFL§ 24.22.15.10Form no.: SG(90) D/04819
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
a4.
33.14.
40.14.
37.5
5. To improve the working conditions of the farmers by providing aid for substitute labour services in
certain cases.
6. Permanent scheme
7. The programme has no effects on trade.
8. Legal basis: Act No. 209 of 13 May 1981, as amended.
9. Aid is granted to cover expenses for temporary relief necessitated by the farmers illness or absence
because of in-serving training. Aid is also given to the training of substitutes.
10  Estimates are not available.G/SCM/N/71/EEC/Add.3
Page 43
8.2
1. Control of Mastitis and other veterinary measures
Forskellige tilskud (bekæmpelse af mastitis hos kvæg, aflatoksinundersøgelser af mælk, dyrlæger i
særlige tilfælde).
2. FFL § 24.32.09Form no.:
Mastitisbekæmpelse : Form no.: 11-10/003/00
Aflatoksin i mælk  Statsstøttesag nr.:N 459/95
Dyrlæger i særlige tilfælde: Form no.:15-
00/001/00
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
c+a4.
8.64.
8.74.
2.2
5. The Mastitis control-programme aims at raising the quality of milk and milk products. The
veterinary assistance programme for smaller islands aims to remove the extra costs in connection
with veterinary treatment for farms on islands without a local veterinarian.
6. The programmes are permanent. The Mastitis control-programme stops the 31st of December 2000.
7. The programmes have no effects on trade.
8. The Mastitis control-programme is based on Order No. 246 1999.
9. The amount of the subsidy is fixed in the annual budget. The subsidy is paid, when the dairy-
organisation has justified that the Mastitis control has been carried out in accordance with the said
Order.
10. The programmes have no effects on employment.G/SCM/N/71/EEC/Add.3
Page 44
8.3
1. Measures to improve the production of honey
Forbedring af vilkårene for honningproduktion
2. FFL§ 24.21.02.60, § 24.33.03Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK.
EU-refunds4.
1.454.
1.24.
1.0
National financed3.
a4.
1.454.
1.2 4.
1.0
5. The aim is to grant projects which improve the production of honey.
6. The specific projects are included in yearly national programmes. The proposed –programme for
2000 aims at controlling varroasis and related diseases.
7. The programme has no effects on trade.
8. Council regulation (EC) No. 1221/97
The national legal basis is depending on the specific project. The possibilities are:
• Act No. 813 of 21 December 1988 as amended by act No. 296 of 24 April 1996
• Expenditure on the national Budget to The Danish Institute of Agricultural Science (Danmarks
JordbrugsForskning § 24.33.03).
9. The national programme has to be accepted by the European-Commission in order to get co-
financing from EU.
The measures which may be included in the programme are: Technical assistance, control of
varroasis, rationalisation of transhumance, physico-chemical analyses and research programmes.
10. Estimates are not available.
Other: The programme can include existing projects in Denmark. As regards to new projects the legal
basis is a note on the Finance Act.G/SCM/N/71/EEC/Add.3
Page 45
8.4
1. Subsidy to certified lots of cereal seeds and seeds of beet, fodderplants, oil and fibre plants
Tilskud til certificerede partier af markfrø og sædekorn
2. FFL § 24.31.11Form no.:
1999 (F) 2000 (F) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
a4. 4.
194.
12
5. To establish a system where companies can choose to use authorised or official sampling and
authorised or official laboratories for certification. The companies get a subsidy in both cases.
6. Permanent
7. The programme has no effect on trade.
8. The legal basis for the subsidy is The Finance Act (FFL§24.31.11, Act 238)
9. The subsidy is granted per certified lot of a specified minimum size with a rate depending on
whether the lot is cereal seeds or seeds of beet, fodderplants, oil and fibre plants. The rates will be
fixed on the basis of costs of analyses and sampling for respectively cereal seeds and seeds of beet,
fodderplants, oil and fibre plants.
10. The estimated amount of lots of cereal seeds and seeds of beet, fodderplants, oil and fibre plants are
37.700 and the estimated subsidy per lot seeds of beet, fodderplants, oil and fibre plants is 590 DKKand for cereal seeds 430 DKK.
Other: The subsidy for 1999 (12 million DKK) has been transferred to 2000.G/SCM/N/71/EEC/Add.3
Page 46
9.1
1. Fishing vessels – permanent cessation
Ophørsordning for fiskefartøjer
2. FFL§ 24.26.30Form no.: DK/XX/21-00/017/00
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4
4.14.
0.94.
44.1
National financed3.
a4.
4.14.
0.94.
49.8
5. Subsidy for decommissioning of fishing vessels is granted to achieve a balance between the capacity
of the fishing fleet and fisheries resources.
6. The present scheme expire in 2001
7. The programme has no effect on trade.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulation No. 2792/99.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 47
9.2
1. Fishing from the coast (hauling up vessels)
Ophalingsspil
2. FFL§ 24.26.10Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
a4.
0.14.
0.14.
0.1
5. To support the fishing from the coast of North Western Jutland.
6. No expiry date.
7. The measure has no effect on trade.
8. Act No. 483 of 12 June 1996.
9. Aid is granted to certain geographic sites for maintenance of hauling-up winches for vessels.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 48
9.3
1. Processing
Forarbejdning og afsætning af fiskerivarer og akvakulturprodukter
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
50.84.
45.44.
49.5
National financed3.
a4.
10.24.
9.14.
16.5
5. The subsidy is granted to improve the efficiency, quality and utilisation of resources in plants
dealing with the processing of fish and fishery products for direct human consumption.
6. Based on 2000 – 06 FIUF programme. Annual decisions on budget.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Re gulation No. 2792/99. Max 20% of the investment.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 49
9.4
1. Advisors for Fishery and Aquaculture
Konsulentvirksomhed i dambrugs- og fiskerierhverv
2. FFL§ 24.26.10Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
a4.
2.74.
2.94.
2.9
5. The subsidy is granted for consultancy to help fishermen making economically and technically
sound decisions.
6. The arrangement is permanent.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. This subsidy covers part of the costs.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 50
9.5
1. Construction of vessels
Bygning af fiskefartøjer
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
6.74.
14.74.
30.0
National financed3.
a4.
1.34.
2.94.
10.0
5. To ensure a competitive renewal of the fishing fleet.
6. Based on 2000 – 06 FIUF programme. Annual decisions on budget.
7. The programme has no effect on trade.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulation No. 2792/99.
  The subsidy is granted for 30% of investment cost. From mid-1998 aid is only given to projects with
a net reduction. From 1999 the maximum grant is 20%.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 51
9.6
1. Aquaculture
Støtte til akvakultur
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
5.24.
3.44.
7.4
National financed3.
a4.
1.04.
0.74.
2.6
5. Modernisation and development of aquaculture installations.
6. Based on 2000 – 06 FIUF programme. Annual decisions on budget.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Re gulation No. 2792/99. Max 20% of the investment.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 52
9.7
1. Modernisation of fishing port facilities
Modernisering af fiskerihavne
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
3.74.
13.74.
15.8
National financed3.
a4.
0.84.
3.24.
10.2
5. Modernisation and development of fishing port facilities.
6. Based on 2000 – 06 FIUF programme. Annual decisions on budget.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulation No. 2792/99.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 53
9.8
1. Market promotion for fishery and aquaculture products
Afsætningsfremme
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
16.24.
2.94.
8.5
National financed3.
a4.
16.24.
2.94.
7.5
5. Promotion of new market outlets for fishery and aquaculture products.
6. Based on 2000 – 06 FIUF programme. Annual decisions on budget.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulation No. 2792/99.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 54
9.9
1. Loans for young fishermen
Lån til yngre fiskere
2. FFL§ 24.26.10.20 & § 24.26.10.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4. 4. 4.
National financed3.
e
f4.
0.33.04.
0.63.14.
2.95.0
5. The aim is to help young fishermen to buy their first vessel or a share of a vessel.
6. The arrangement is permanent.
7. No significant effect on trade.
8. Act No. 483 of 12 June 1996.
9. Loans and guarantee are given to young fishermen, who are first time buyers of fishing vessels.  The
fishing vessel is security for the loan.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 55
9.10
1. Preretirment of fishermen
Supplerende ophørsstøtte for erhvervsfiskere
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
0.64.
0.54.
0.7
National financed3.
a4.
0.64.
0.54.
0.7
5. The aim is to facilitate retirement for vessels owners and fisherman employed on a fishing vessel
which are decommissioned with governmental aid.
6. The last commitments were made at the end of 1998.
7. Estimates are not available.
8. Act No. 1081 of 22 December 1993.
9. Aid is granted in accordance with act No. 1081 of 22 December 1993.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 56
9.11
1. PESCA
Pesca-initiativerne
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
6.64.
12.94.
0
National financed3.
a4.
7.34.
6.44.
0
5. The aim is to modernise and restructure the fishing sector and develop other sectors in regions
dependant on fishery sector.
6. The programme expires in 1999. The last commitments were made in 1999.
7. Estimates are not available.
8. The aid granted is based on the Danish PESCA Programme approved by the European Commission
and act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulation No. 4253/88 and 2052/88
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 57
9.12
1. Modernisation of fishing vessels
Modernisering af fiskerfartøjer
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
46.24.
26.54.
37.3
National financed3.
a4.
9.24.
3.84.
12.5
5. The aim is to modernise the fishing fleet, and thereby improve the efficiency, quality and utilisation
of resources in the fishing sector.
6. Based on 2000 – 06 FIUF programme. Annual decisions on budget.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulation 2792/99. Max 20% of total investment.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 58
9.13
1. Pound net fishermen
Tilskud til orkanskaderamte bundgarnsbedrifter
2. FFL§ 24.26.30Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
04.
04.
0
National financed3.
a4.
04.
5.84.
2.0
5. The aid is compensation for part of the loss suffered by pound net fishermen from a storm in 1999.
6. The programme expires in 2000.
7. Estimates are not available.
8. Act No. 194 of 29 Mars 2000.
9. Aid for mew investment of max 50% of the loss suffered.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 59
9.14
1. Experimental fishing and fish processing development
Forsøgsfiskeri og udvikling af fiskeprodukter
2. FFL§24.23.17Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
04.
04.
0
National financed3.
a4.
6.04.
4.14.
5.9
5. Sustainable, selective and cost-effective in fishing and processing
6. Annual budget
7. Estimates are not available.
8. Act. No. 634 of 29 July 1999.
9. The aid covers part of project costs.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 60
9.15
1. FØTEK (Fishery)
FØTEK (fiskeri)
2. FFL§24.23.17Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
04.
04.
0
National financed3.
a4.
9.94.
7.04.
0
5. Innovation in the fish processing sector.
6. Annual budget.
7. Estimates are not available.
8. FØTEK Research programme
9. Grant for non-commercial research and development.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 61
9.16
1. Innovative actions etc .
Udviklingsprojekter, pilotprojekter og andre foranstaltninger
2. Form no.:
1999 (F) 2000 (E) 2001 (B)
Mio. DKK
EU-refunds4.
8.44.
11.64.
25.5
National financed3.
a4.
8.44.
11.64.
25.5
5. Innovation and development in the fisheries sector involving partners from the industry.
6. Annual budget
7. Estimates are not available.
8. Act 483 of 12. June 1996.
9. Aid is granted in accordance with Reg. 2792/99.
10. Estimates are not available.
Other:G/SCM/N/71/EEC/Add.3
Page 62
VI. MINISTRY OF BUSINESS AND INDUSTRY
1. Subsidy notifications 2000 / 2001
1-3 Form of the subsidy / Subsidy per unit or total
Table 1: Subsidies in 2000 and 2001 – promises (commitments) and payments in
million DKK.
Mill. DKK 2000 2001 (expected)
Promises Payments Promises Payments3
Initiatives for SME’s
and Entrepreneurs126.0 7.0 5.0 -
Development of
Competence and
Technology1537.8 552.3 428.3 -
Regional IndustrialDevelopment
239.0 27.4 39.0 -
Total 602.8 668.7 472.3 -
1A clear distinction between ‘Initiatives for SME’s and Entrepreneurs’ and
‘Development of Competence and Technology’ is not possible, because the last
mentioned in some cases also give subsidies to SME’s.
2Includes only programmes financed partly by the EU.
3The expected payments for 2001 are not available.
On the area of Initiatives for SME’s and Entrepreneurs the average grant per company in 2000
was approximately DKK 600,000.1
On the area of Development of Competence and Technology the average grant per
company/institution in 2000 was approximately DKK 3,800,000.1
On the area of Regional Industrial Development it is not possible to state the average subsidy,
since the regional funds are also administered regionally, and therefore the Agency for Development
and Trade and Industry does not directly monitor all the payments to companies.
A number of closed programmes – where no promises are given in year 2000 – are not
included in table 1. Limited payments will continue over the next years as the projects are terminated.
It is not possible to state the maximum limit for subsidies for each project because it depends
on the amount the companies are willing to contribute  and the character of the initiative.  The specific
conditions which has to be fulfilled for each project vary from initiative to initiative.
                                                     
1 Companies/institutions count only once within the same initiative even though they might have
received grants at different times for different projects.G/SCM/N/71/EEC/Add.3
Page 63
3. Purpose of the subsidy
The general aim of the Trade and Industrial Development Act is to strengthen the trade and
industrial development in Denmark.  This is primarily carried out by developing the general
framework conditions for the companies.
4. Duration of the subsidy
The period of validity for the individual initiatives differs.  Every year it is considered
whether funding should be provided for individual initiatives and schemes.
5. Assessment of the trade effects
It is not possible immediately to estimate the business effects of the subsidies, because it is a
question of horizontal initiatives, which are not restricted to specific industries.
2. Rentestøtteordningen (Interest-subsidy scheme). Supplementary appropriation request
no. 3 from 13 October 1993, approved by the Parliament Finance Committee.
1. Form of the subsidy
Interest-subsidy.
Under the interest-subsidy scheme a subsidy can be paid at the time a ship is delivered as an
interest grant up to 9 per cent of the contract value. It can also be paid in instalments corresponding to
the dates for payments of interest and instalments on the loan raised.
2. Subsidy per unit or total
In 2000 a total of DKK 411 mill. was paid under the interest-subsidy scheme.  The budget
figure for 2001 is DKK 562 mill.
3. Purpose of the subsidy
The purpose of the interest-subsidy scheme is to support shipowner’s building ships at Danish
shipyards.
4. Duration of the subsidy
The interest-subsidy scheme is available only for ships contracted between 13 October 1993
and 31 December 1998.
5. Assessment of the trade effects
Figures as at 31 December 2000:
Number of ships having received interest-subsidy: 10
Number of shipyards involved:
The scheme has been approved by the Commission under the 7th Directive on subsidy to
shipbuilding.  The subsidy element varies depending on the contract value of each ship.  The interest-
subsidy amounts to 4.5 per cent of the contract value for ships with a contract value less than 10 mill.
ECU, and to 9 per cent for ships with a higher contract value.  If the ship receives any other subsidy,G/SCM/N/71/EEC/Add.3
Page 64
the interest-subsidy is reduced accordingly.  A ship with a contract value of 10 mill. ECU or more that
has been granted a guarantee under the Guarantee-scheme will only receive interest-subsidy
amounting to 8 per cent of the contract value.
3. Garantifonden for skibsbygning (The guarantee scheme). By Bill no. 209 from
28 April 1993, Bill no. 254 from 19 April 1995 and Bill no. 292 from 28 April 1997.
1. Form of the subsidy
This scheme gives the possibility to provide guarantees for loans to build ships at Danish
shipyards.
2. Subsidy per unit or total
Guarantees for app. DKK 1.061 mill. has been granted under the scheme.
3. Purpose of the subsidy
The purpose of the guarantee scheme is to support shipowners building ships at Danish
shipyards.
4. Duration of the subsidy
The scheme is available only for ships contracted before 31 December 1998.
5. Assessment of the trade effects
Figures as at 31 December 2000:Actual number of guarantees issued: 7
Total liability: DKK 206,545,658
Number of shipyards involved is: 5
The scheme has been approved by the Commission under the 7th Directive on subsidy to
shipbuilding and the subsidy element is calculated by the Commission to 1 per cent of the contract
value.
4. Fragtskibsordningen (Guarantee Scheme for Small Cargo Ships). By Bill no. 618 from
17 November 1976 and Bill no. 385 from 10 June 1997.
1. Form of the subsidy
This scheme gives the possibility to provide guarantees for loans to build or convert small
cargo ships at Danish shipyards.
2. Subsidy per unit or total
Guarantees for app. DKK 408 mill. have been issued under the scheme.G/SCM/N/71/EEC/Add.3
Page 65
3. Purpose of the subsidy
The purpose of the guarantee scheme is to support shipowners building or converting small
cargo ships at Danish shipyards.
4. Assessment of the trade effects
Figures as at 31 December 2000:
Actual number of guarantees issued: 17
Total liability: DKK 118,806,898
Number of shipyards involved: 7
The Commission has not calculated any subsidy element under the 7th Directive on subsidy
to shipbuilding, the scheme is self-financing, hence there is no time-limit to the scheme for the time
being.
5. Driftsstøtteordningen (Contract-subsidy scheme). By Bill no. 1009 from
23 December 1998.
1. Form of the subsidy
Under the Contract-subsidy scheme a subsidy can be paid at the time a ship is delivered as a
grant up to 9 per cent of the contract value.
2. Subsidy per unit or total
Payments for the year 2000: DKK 142 mill.  The budget figure for 2001 is DKK 173 mill.
3. Purpose of the subsidy
The purpose of the Contract-subsidy scheme is to support Danish shipyards.
4. Duration of the subsidy
The Contract-subsidy scheme is available for ships contracted not later than
31 December 2000.
5. Assessment of the trade effects
Figures as at 31 December 2000:Number of ships having received contract-subsidy: 8
Number of shipyards involved: 5
The scheme has been approved by the Commission in accordance to the Councils Decision
No. 1540/98 from 29 June 1998. The subsidy element varies depending on the contract value of each
ship.  The subsidy amounts to 4.5 per cent of the contract value for ships with a contract value less
than 10 mill ECU, and to 9 per cent for ships with a higher contract value. If the ship receives anyother subsidy, the contract-subsidy is reduced accordingly.G/SCM/N/71/EEC/Add.3
Page 66
6. Business Development Finance (Vækstfonden).
Business Development Finance Act (Lov om Vækstfonden)
1. Form of the subsidy
Grants, guaranties and loans on market terms, repayable if the project is successful.
2. Subsidy per unit or total
The scheme is horizontal. The total financing of approximately 94 projects are:Grants: 3,2 mio. DKK.
Guarantees:    - mio. DKK.
Repayable loans: 210 mio. DKK.Loans for Research and Development can be given for up to 45 per cent of the total project
costs.
Loans for Market Development are only given to SME. Loans can be given for the
development of experience and expert knowledge on new geographical markets.
The enterprises pay interest on the loans that are being repaid if commercial success is
achieved.
3. Purpose of the subsidy
The political purpose is to increase internationalisation and R&D activities in private
enterprises.
4. Duration of the subsidy
The scheme is not limited in time.
5. Assessment of the trade effects
The scheme is horizontal and the loans are given to R&D and competence (soft aid) activities
in all sectors.
7. Act on maritime education and training (amendment number 388, 10 June 1997).
1. Form of the subsidy
Grant to education of supernumerary officer trainees and to training of supernumerary
ordinary ship’s assistants. Grant to repatriation to prescribed ordinary ship’s assistants.
2. The total duration of education and training leading to qualifications as junior officer is
4 years of which two and a half years are spent at college and one an a half years at sea.  It is a
condition, that the shipowners enter into a written agreement or contract with each officer traineeaccording to which the shipowner is obliged to provide one and half year sea service as an integral
part of the Maritime Education and Training system.  During the sea service periods the shipownersG/SCM/N/71/EEC/Add.3
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pay salary to the trainees, who are supernumerary crewmembers on board.  The State supports the
shipowners by a grant, which as a maximum can be DKK 40.000 pr. trainee for a six month period for
not more than three such periods.  The grant partially covers salary, travel expenses, board and
lodging.
A similar arrangement is introduced to training of supernumerary ship’s assistant trainees
during one and half year sea service on board.
Finally the State can reimburse the shipowners’ travel expenses in connection with
repatriation of prescribed ordinary ship’s assistants, who are domiciled in Denmark, provided they
have served on board the same ship for a continuous period of three months.
The EU-Commission has raised no objections after Article 92, paragraph 3, number c, in the
Treaty (now Article 87, paragraph 3, number c).
3. Purpose of the subsidy
The purpose with the grant is to promote the use of Danish crew in the Danish merchant fleet.
4. Duration of the subsidy
The possibility to obtain grants to officer trainees is not limited in time.The possibility to obtain grants to supernumerary ship’s assistants was introduced in 1998 as a
trial for a period of two years. It has been decided to prolong the state aid and make it permanent.
Furthermore, the support should be extended to include periods of practice for ship’s mechanics
ashore.
The possibility to obtain grants to prescribed ship’s assistants is not limited in time.
5. Assessment of the trade effects
Grant is given to compensate the shipowners cost to education/training and to support the use
of ordinary ship’s assistants in the small Danish merchant fleet.
8. The Act on stamp duty (amendment number 388, 10 June 1997).
1. Form of the subsidy
Reduction of stamp duty for merchant ships.  Lifting the stamp duty for builder’s certificate
and similar documents.
2. Subsidy per unit or total
The reduction of the stamp duty is 3 per mille (from 4 per mille to 1 per mille).The stamp duty for builder’s certificate and similar documents is annulled. Before the
amendment the stamp duty was 1 per mille.
The EU-Commission has raised no objections after Article 92, paragraph 3, number c, in the
Treaty (now Article 87, paragraph 3, number c).G/SCM/N/71/EEC/Add.3
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3. Purpose of the subsidy
The purpose is to promote the renewal of the merchant fleet and to strengthen the merchant
fleets competitiveness.
4. Duration of the subsidy
No time limitation.
5. Assessment of the trade effects
The purpose is to reduce the shipowners costs.
VII. MINISTRY OF ENVIRONMENT AND ENERGY, AGENCY FOR NATURAL
FOREST AND NATURE
1. Product Development Scheme for Forestry and Wood Working Industry
1. Form of the subsidy
Subsidies or loans.  Subsides shall be repaid with interest if the project becomes a success.
2. Subsidy per unit or total
2000 Total amount of subsidy (DKK million)
Number of commitments (projects)
Average subsidy (DKK million)12.0
27
0.4
1999 Total amount of subsidy (DKK million)
Number of commitments (projects)
Average subsidy (DKK million)18.7
23
0.8
1998 Total amount of subsidy (DKK million)
Number of commitments (projects)
Average subsidy (DKK million)15.7
27
0.6
3. Purpose of the subsidy
The aim of the scheme is to make the forestry and wood-processing industries more
competitive and less sensitive to market fluctuations with a view to obtaining satisfactory utilisation
of natural resource wood, which is an environmentally friendly raw material.
Wood, which is a reproducible, recyclable and biologically degradable, CO 2 neutral material,
is a unique resource with an unutilised potentia l. Apart from the production of furniture, the wood-
processing industry in Denmark is characterised by small make-to-order firms that lack both a
tradition of undertaking development tasks and the capital to do so.  (It should be noted that furniture
production is not comprised by the product development scheme).  More specifically, the wood-G/SCM/N/71/EEC/Add.3
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processing sector is dominated by firms, whic h in relation to the EU Communities framework
provisions for small and medium-sized firms are small.  They are generally characterised by having
relatively low levels of technology and product improvement.
4. Duration of the subsidy
The scheme was established late in 1994 and has no fixed validity period.
5. Statistical information
Number Subsidy granted
DKK millionAverage
DKK million
164 89.2 0.54
Table 1. Average subsidy per project 1994 to 2000. The subsidy granted also includes
investigations and information initiatives undertaken by the governing body of the programme. These
activities amounts to 18 million DKK in the period.
Category
Wood-processing undertakings other than sawmills 24
Organisations, associations, independent institutions 22
Research and experimental institution 33
Machine producers 19
Forest districts 9Advisers, consultants, etc. 10
Producers of decorative greenery, etc. 7
Sawmills 4
Nurseries 4
Contractors 1
Total                                                                                                                          133
Table 2. Distribution by categories of applicants for projects in the period 1994 to 2000
VIII.  MINISTRY OF ENVIRONMENT AND ENERGY, AGENCY FOR ENVIRONMENT
It should be noted that the Grant scheme for collection and recovery of waste oils and the
programme for Environmental Management and auditing in Small and Medium-sized Enterpriseswere terminated by the end of 1999.
1. Subsidy scheme for Cleaner Products.
Succeeds the subsidy scheme for cleaner technology. Stated in the Environmental Protection
Act, no. 698, of 22 July 1998.G/SCM/N/71/EEC/Add.3
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1. Form of the subsidy
Grants.
2. Subsidy per unit or total
In 2000 26 projects regarding cleaner products received grant payments amounting to
DKK 20,185,136.  Average grants amounts to 776,351 DKK.
Whether or not a project proposal receives a grant depends on an individual assessment of the
project. In principal there is no maximum amount for grants given to each project.
3. Purpose of the subsidy
The scheme aims at reducing the environmental impact of products that may occur in all
phases of the product life-cycle.  Grants are given to projects that aim at reducing the environmental
impact from development, production, marketing, sales and consumption.  Including the wastetreatment in the product life-cycle.
4. Duration of the subsidy
The subsidy scheme is part of Programme for Cleaner Products valid from 1999-2002.
5. Assessment on trade effects
It is not possible to give statistical information on the trade effects of the scheme, as the
Subsidy Scheme for Cleaner Products is not directed at specific enterprises.
IX. MINISTRY OF ENVIRONMENT AND ENERGY, AGENCY FOR ENERGY
1. Development Programme for Renewable Energy
1. Form of the subsidy
Grant scheme for development projects, renewable energy plants and renewable energy
centres.
2. Subsidy per unit or total
In 2000 the grant payment amounted to DKK 174.6 million.  The estimate for 2001 is
DKK 130.0 million.
3. Purpose of the subsidy
The objective of the programme is to reduce CO 2-emissions form the energy production
sector through development, demonstration and implementation of renewable energy technologies.
4. Duration of the subsidy
The grant is not subject to a time limitation.G/SCM/N/71/EEC/Add.3
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5. Law No. 427 of 10 June 1997: Law on amende d Law on Development of Renewable Energy.
6. Statistical information
It is not possible to present statistical information on the trade effect as the programme mainly
supports projects regarding pre-market technological development.
2. Governmental Funding for Energy Research and Technological Development (Energy
Research Programme) (ERP)
1. Form of the subsidy
Grants.
2. Subsidy per unit or total
Amount used on the programme in 2000 (estimate), 2001 (budget).  In 2000, 88 applicants
received grant from ERP.  Grants amounted to 110.2 million DKK, the average grant was
1.25 million DKK.  The 2001 grant budget amount is 112 million DKK.  This year grants to projectsconcerning international cooperation on ERP included.
3. Purpose of the subsidy
The objective of the grants scheme is to support energy research and technology development.
4. Duration of the subsidy
(2000)-2002. There are no time limit for the grant scheme. Grants are limited to 3 years for
each individual project.
5. Law No.1024 of December 1998 and the Danish National Budget.
3. Development  and Demonstration of New Energy Technologies.
1. Form of the subsidy
Grants and loans.
2. Subsidy per unit or total
The support programme was established in 1995 with a total grant on DKK 15 million. In
1995 the total grant amount was allocated to 3 projects in 3 different companies.
The support in 2000 is disbursed and the programme is closed at the end of 2000.
3. Purpose of the subsidy
Grants and loans to development and demonstration of new energy technology and products
especially based on public research projects.G/SCM/N/71/EEC/Add.3
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4. Duration of the subsidy
1995-2000.
5. Based on the Danish National Budget 1995.6. The support from the programme began in the end of 1995 and the research projects are
completed in 2000.
4. Subsidy to the Hydrogen Programme (New technologies for renewable energy).
1. Form of the subsidy
Grants
2. Subsidy per unit or total
The support programme was established in 1998.  In 1998/99 8 applicants received grants
which amounted to 9.9 million DKK and in 2000 there were 7 applicants who received grants which
amounted to 9.6 mill in DKK.  The average grant was 1.3 million DKK.
There are still no budget for 2001.
3. Purpose of the subsidy
The programme target is the promotion of the use of hydrogen in the energy sector, primary in
transport.
4. Duration of the subsidy
1998-2006. Grants are limited to 3 years for each individual project.
5. Referring to the Danish National Budget 1997 as a result of negotiation between the Danish
Government and the Enhedslisten.
6. Assessment of the trade effects
The programme will have negligible significance for trade.
5. The Electricity Supply Bill, involving promotion of particular sustainable energy
applications
1. According to the European Commission the Act concerning existing plants is consistent with
the EU-treaty.
Concerning new plants 3 January 2001 Denmark informed the commission by the rules of the
new framework conditions.G/SCM/N/71/EEC/Add.3
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2. Purpose of the subsidy
The objective of the Act is to ensure that the electricity supply of the country is organised and
implemented in accordance with consideration for security of supply, the national economy, the
environment and consumer protection.  Within the terms of this objective, the Act is to ensureconsumers access to inexpensive electricity and continue to provide them with influence on the
administration of the assets of the electricity sector.
In accordance with the purposes mentioned, the Act is to promote in particular sustainable
energy application, including by energy savings and the use of CHP, renewable and environmentally
benign energy sources, while also ensuring efficient use of financial resources and creating
competition on markets for production of and trade in electricity.
3. Duration of the subsidy
The system is expected to contain a de facto time limitation.
4. Act no. 375 of 2 June 1999
6. Bill on CO 2 Quotas for Electricity Production
1. According to the European Commission the Act concerning existing plants is consistent with
the EU-treaty.
2. Purpose of the subsidy
The objective of this Act is to secure cost-effective regulation of CO 2 as well as reduced CO 2
emission from fuels used for electricity production in Denmark.
The Act shall apply to all producers of electricity, however producers generating electricity
exclusively through the application of CO 2-free or CO 2-neutral energy sources shall be exempted.
3. Duration of the subsidy
The system is expected to contain a de facto time limitation.
4. Act no. 376 of 2 June 1999
7. Act on taxes on natural gas and on town gas.  Measures in favour of the natural gas
sector in Denmark.
1. Form of the subsidy
A tax relief on natural gas and a basic deduction of the tax on natural gas corresponding to a
yearly quantity of 2.6 billion m3.
2. Subsidy per unit or total
In 2000 the total compensation to the sector amounted to approximately DKK 1.0 billion.G/SCM/N/71/EEC/Add.3
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3. Purpose of the subsidy
The aim of the preferential tax treatment on natural gas is to support the infrastructure
investments. The support is necessary, as the introduction and development of the Danish natural gas
system took place over a relatively short period of time in order to improve the national security ofsupply, and a significant debt burden has been established within the gas sector.
4. Duration of the subsidy
The measures will be terminated on 1 January 2001.
5. Act No. 443 of 10 June 1997.
6. Statistical information
It is not possible to give statistical information on the trade effects of the measures in favour
of the natural gas sector in Denmark.
8. The possibility to include losses realised on in vestments in co-ordinated activities in the
price of electricity (SEAS-act).
1. Form of the subsidy
According to the European Commission the Act is in accordance with the community
regulation regarding state aid to rescuing and restructuring of distressed enterprises.
2. Amount used on the programme
The total loss realised on investments in the co-ordinated activities of SEAS
is 213.5 million DKR.  This amount will be included in the price of electricity within a period of
15 years.
3. Purpose of the programme
The act secures that the electricity enterprises can include losses realised on investments i co-
ordinated activities in the price of electricity.
4. Duration of the programme
The approval is conditional on the loss-generating activity having terminated no later than
1 October 1994.
5. Act No. 35 of 18 January 1995 regarding amendments to the Electricity Supply Act.
9. Grant scheme for investment in converting or  expanding district heating plants to the
use of biomass fuels for heat or combined heat and power generation.
1. Form of the subsidy
Grants.G/SCM/N/71/EEC/Add.3
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2. Amount used on the programme
In 2000 grant payment amounted to DKK 13.0 million.
3. Purpose of the programme
The objective of the grant scheme is to reduce CO 2-emmissions by converting or expanding
district heating plants to the use of biomass fuels for heat or combined heat and power generation
4. Duration of the programme
The grant is valid till 2002.
5. Law No. 3 of 3 January 1992
6. Statistical information
It is not possible to present statistical information on the trade effect of the grant scheme.  The
district heating plants do not export heat.
10. Subsidies for Electricity Production
1.. Form of the subsidy
State subsidy.
2. Amount used on the programme
710 million DKK in 2000.  624 million DKK in 2001.
The subsidy is given as 0.07 DKK/kWh for the amount of electricity produced on combined
heat and power plants based on natural gas, industrial combined heat and power plants based on
natural gas and combined heat and power plants based on waste. The subsidy is given as 0.1 DKK for
the amount of electricity produced on combined heat and power plants based on natural gas or waste,
where the plants power generation capacity are 3 MW or less.  The subsidy is given as
0.17 DKK/kWh for the amount of electricity produced on renewable sources.
The subsidy is given as a compensation for the CO 2-tax and the tax on electricity.  The
subsidy is given to decentralised combined heat and power plants based on natural gas, industrial
combined heat and power plants based on natural gas, combined heat and power plants based on
biomass and waste.  Furthermore, subsidy is given to electricity produced on renewable sources such
as biogas, hydropower etc.  (The subsidy given to electricity produced on wind power has been
dropped from 16 August 1999, according to notice no. 640 of 5 August 1999 concerning the re-adjustment of the subsidy given to electricity produced on wind power.) The subsidy given to
electricity produced on renewable sources such as  biogas, hydropower etc.  will be dropped from
2001, according to notice no. 1364 of 20 December 2000 concerning additional charge to the
electricity prices to electricity produced on renewable sources.
3. Purpose of the programme
The subsidy is given to environmentally friendly power generation as a compensation for the
CO 2-tax and the tax on electricity.  The purpose of the scheme is to reduce the CO 2-emission byG/SCM/N/71/EEC/Add.3
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increasing the share of co-generation, reduce the power production based on coal and promote the
production of electricity based on renewable sources.
4. Duration
The subsidy can only be given to industrial combined heat and power plants for the first
6 year of operation.  For industrial combined heat and power plants with a power capacity of 4 MW or
less the subsidy can only be given for the first 8 years of operation.  The subsidy scheme has been
changed in 1999 in connection with the reform of the power sector.  The subsidy of 0.17 DKK/kWh
for the amount of electricity produced on renewable sources will be dropped.  The subsidy will
instead be paid via the electricity prices, cf. remarks above.
5. Consolidated Act No. 768 of 6 October 1997.
6. Statistical information
It is not possible to give statistical information of the trade effects of the scheme.
11. LFC listing fee
1. Form of the subsidy
Grants
2. Subsidy per unit or total
A maximum 10 DKK grant for each sold LFC. The LFC had to meet the EU’s Quality charter
for CFLs of 19 July 1999, and the shop had to have a verity of LFC within a certain price limit.
In all 1.4 million DKK was paid in grant. Another 6.5 million was spent on the campaign in
2000.  There will be a follow-up campaign in the autumn without, but without any grand
3. Purpose of the subsidy
To promote the energy label and to encourage the procurement of a variety of good and cheap
LFC thereby reducing CO 2  emissions
4. Duration of the subsidy
The scheme was valid from 15 September to 25 November 2000.
5. Electricity Saving Trust law number 1209 of 27 December 1996.
12. Subsidy for converting electrical heating systems in residences and public buildings to
combined heat and power and natural gas
1. Form of subsidy
GrantsG/SCM/N/71/EEC/Add.3
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2. Amount used on programme
An average of 15,000 DKK.  In all 45.6 million DKK was paid in grant.
3. Purpose of the subsidy
To promote the connection to district heating and natural gas in order to reduce CO 2
emissions
4. Duration of the subsidy
The scheme is expected to run a last 10 years from 1998
5. Electricity Saving Trust law number 1209 of 27 December 1996
13. Grants scheme for development, marketing, procurement and utilisation of electricity
saving appliances and equipment.  In 2000 the scheme included fridges/ freezer, washing
and drying clothes and ventilation in schools.
1. Form of the subsidy
Grants
2. Amount used on programme
The grant payment in 2000 amounted to 3.1 million DKK
3. Purpose of subsidy
To objective of the grant is to promote electricity savings in public and private households in
accordance with socio-economic and environmental considerations.
4. Duration of subsidy
The scheme has no deadline
5. Electricity Saving Trust law number 1209 of 27 December 1996
14. Governmental subsidy to promote the connection to combined power and heat
distribution systems based on coal (Law No. 420 of 1 June 1994)
1. Form of the subsidy
The subsidy is given to district heating companies who distribute heat produced on CHP
based on coal. It is given if the consumer price for heat in the companies’ heating area is higher thanthe price for heat supplied by comparable district heating companies in other areas which also
distribute heat produced on CHP as described above.G/SCM/N/71/EEC/Add.3
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2. Amount used on the programme
In the 2000 grant commitments under the scheme amounted to 14.6 million DKK.  Grant
payments in 2000 amounted 18.8 million DKK.
3. Purpose of the subsidy
The purpose of the subsidy scheme is to promote the connection to district heating supplied
by combined heat and power plants (CHP ) based on coal in order to reduce CO 2 emissions. The
subsidy is given as compensation for the increased coal tax, implemented in 1993.
4. Duration of the subsidy
The whole scheme is valid in the period 1 October 1994 to 2000 included. Applications can
be made only once yearly.
5. Statistical information
It is not possible to give statistical information of the trade effects of an increased connection
to the district heating systems covered by the scheme.  The CHP plants do not export heat.  Thesubsidy will not affect the Danish electricity prices because the benefits of the scheme go to the heat
consumers according to the Danish rules on pricing.
15. Governmental subsidy for substituting of ol d heating systems in residences to combined
heat and power (Law No. 5 of 3 January 1992)
1. Form of the subsidy
The subsidy is given to residences built before 1950 that are heated by gas radiators, kerosene
or electric ovens, where central heating and hot water is to be installed.
2. Amount used on programme
The subsidy is a basic amount of DKK 12,000 and a supplement of DKK 125 pr. m2 for single
and double family houses.  Multifamily houses can achieve a basic amount of DKK 15,000 per
dwelling and a supplement of DKK 150 pr. m2.  In 2000 a total of 95.0 mill DKK was paid.
3. Purpose of the subsidy
The purpose of the subsidy scheme is to reduce the air pollution in the cities and create more
employment.
4. Duration of the subsidy
The subsidy scheme is expected to last until 2002.  There is no deadline for applications.
5. Statistical information
It is not possible to give statistical information of the trade effects of an increased connection
to the combined heat and power covered by the scheme.G/SCM/N/71/EEC/Add.3
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16. Governmental subsidy for product orie nted saving programme (Law No. 129 of
25 February 1998)
1. Form of subsidy
Grants
2. Amount used on programme
51 mio. DKK 01 (budget) 24 mio. DKK
3. Purpose of subsidy
Financial support is given to the development, marketing, procurement and utilisation of
energy efficient products in households and public institutions.  Subsidies for efficient gas boilers,
alternative insulation, demonstration projects and attempts to label energy efficient windows have
been the first initiatives.  The purpose of the scheme is to promote energy efficient products so as to
reduce the CO 2 emissions.
4. Duration of subsidy
The subsidy scheme has no time limit.
5. Statistical information
It is not possible to give statistical information on the trade effects of the grants.
17. Subsidy scheme for energy-saving measures in pensioners’ residences (Law No. 1050 of
23 December 1992)
1. Form of the subsidy
The subsidy is given for the carrying out of energy-saving measures in residences occupied by
pensioners who are badly off and receive heating allowance as laid down in Social Pensions Act.
2. Amount used on programme
The maximum subsidy is DKK 25,000. However, the subsidy amount must not exceed 50 per
cent of the total justified expenses.
3. Purpose of the subsidy
The objective of the scheme is to reduce the pensioners’ fuel bills and consequently also the
public subsidy for reducing the pensioners’ heating costs.
4. Duration of the subsidy
The subsidy scheme has no time limit.
5. Statistical information
It is not possible to evaluate the commercial effects of the subsidy scheme.G/SCM/N/71/EEC/Add.3
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18. Subsidies for energy savings etc. in private companies.
1. Form of the subsidy
Subsidy scheme for energy savings in private companies.
2. Amount used on programme
In 2000 subsidies amounted to DKK 330 million. 3,387 companies received subsidy
payments in 2000.  Subsidies are calculated as a percentage of the costs.  The budget frame for the
subsidy scheme is DKK 425 million in 2001.
3. Purpose of the subsidy
The objective of the subsidy scheme is to support measures that ensure better energy
efficiency or energy savings in private companies. The scheme aims at reducing the emission of CO 2
from the companies.
4. Duration of the subsidy
The subsidy scheme has no time limitation. In addition to the existing amount set aside to
private companies (approx. DKK 280 million by the end of 2000), an annual amount of DKK 175
million is provided for industrial companies from 2000 onwards.
5. Consolidated Act No. 84 of 3 February 2000.
6. Statistical information
It is not possible to give statistical information on the trade effect of the subsidy scheme. It is
a general scheme not directed at specific types of companies.
19. Grant scheme for reimbursement of CO 2-tax expenses to enterprises with a high energy
consumption.
1. Form of the subsidy
Grants.
2. Amount used on programme
In 2000 grant payments amounted to DKK 128.1 million.  Only certain energy intensive
companies can obtain the grant.  By 2000, 329 private companies have entered into an energy
agreement.  The budget frame for the grant scheme is DKK 186.2 million in 2001.
3. Purpose of subsidy
The scheme aims at reducing the emissions of CO 2 from private companies with a high
energy consumption.  These companie s may obtain reimbursement of CO 2-tax expenses if they enter
into an agreement with the Danish Energy Agency , which includes undertaking an extensive energyG/SCM/N/71/EEC/Add.3
Page 81
audit and implementing an energy management system in accordance with specific rules laid out by
the Danish Energy Agency.
4. Duration of subsidy
The grant scheme has no time limitation.  The scheme was evaluated in 1999, resulting in a
minor revision in 2000.
5. Consolidated Act No. 1107 of 29 December 1999.6. Statistical information
It is not possible to give statistical information on the trade effect of the scheme.  It is a
general grant scheme not directed at specific types of companies.
__________