WORLD TRADE
ORGANIZATIONG/SCM/N/48/EEC/Add.3
11 January 2000
(00-0092)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating Notifications 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/48/EEC/Add.3
Page 2
DENMARK
TABLE OF CONTENTS
Page
I. AGRICU LTURE................................................................................................................. 6
1. Income Support Programmes............................................................................................ 6
1.1 Refinancing of mortgage loans etc. in agricultu ral hold ings ................................................ 6
1.2 Government subsidy to agricultural indexed loans granted in connection with
refinancing of mo rtgage loans .............................................................................................. 6
1.3 Government subsidy to payment to  agricultural i ndexed loans............................................ 7
1.4 Debt rescheduling scheme for farmer s (loans and inte rest subsidy)..................................... 7
1.5 Debt reorganization for farmers (loan) ................................................................................. 8
1.6 Aid scheme to benefit less-f avoured agricult ural areas ........................................................ 8
2. Structural Programmes...................................................................................................... 9
2.1 Young farmers' scheme (national pr ogramme)..................................................................... 9
2.2 Land consolidation programme ............................................................................................ 9
2.3 Workmen's houses in rural areas .......................................................................................... 10
3. Environmental programmes.............................................................................................. 10
3.1 Agricultural investments with the aim of protecting and improving the
environment .................................................................................................................... ...... 10
3.2 Government guarantee for loans for agricultural investments with the aim
of protecting and improv ing the envi ronment....................................................................... 11
4. Measures to compensate for losses due to damage to agricultural
production or means of production................................................................................... 11
4.1 Guaranteed "drought loans" w ith repayment su bsidy (1992) ............................................... 11
4.2 Guaranteed "drought loans" w ith interest su bsidy (1987) .................................................... 12
4.3 Control of animal diseases  and salmonella in poultry .......................................................... 12
5. Research..................................................................................................................... .......... 13
5.1 Public Agricultural and Fish ery Research Institutions ......................................................... 13
6. General Measures ............................................................................................................. .. 14
6.1 Promille Levy Funds and Production Levy Funds................................................................ 14
6.2 Aid to product development of ag ricultural and fishery products ........................................ 14
6.3 Advisory services  in agri culture ........................................................................................... 1 5
6.4 Compensation of the losses encountered by some local authorities due to the
introduction of a ceiling on ag ricultural land tax rates ......................................................... 16
7. Community-Related Programmes..................................................................................... 16
7.1 Aid for investments in agricultural holdings......................................................................... 16
7.2 Cooperation with recognized groups .................................................................................... 17
7.3 Vocational training in agriculture ......................................................................................... 1 7
7.4 Environmentally fr iendly fa rming ........................................................................................ 18
7.5 Early retirement from farming.............................................................................................. 1 8
7.6 Set-aside ar able land ....................................................................................................... ...... 19
7.7 Environmentally friendly fa rming in sensi tive areas ............................................................ 19
7.8 Establishment of  shelter belts .............................................................................................. .1 9
7.9 Organic farming............................................................................................................. ....... 20
7.10 Investments for improving the processing and marketing conditions for
agricultural and fo restry products ......................................................................................... 20
7.11 Development of spec ific rural areas ..................................................................................... 21
7.12 Farm Relie f Serv ices....................................................................................................... ...... 21G/SCM/N/48/EEC/Add.3
Page 3
Page
8. Other Pr ogrammes ............................................................................................................. 22
8.1 Control of Mastitis and ot her veterinary  measures ............................................................... 22
8.2 Measures to improve th e production of honey...................................................................... 22
9. Fisheries .................................................................................................................... ........... 23
9.1 Fishing Vessels – pe rmanent ces sation*............................................................................... 23
9.2 Fishing from the coast (hauling up vessels).......................................................................... 23
9.3 Processing .................................................................................................................. ........... 24
9.4 Consultancy for Fishery and Aquaculture ............................................................................ 24
9.5 Construction of vessels* .................................................................................................... ... 25
9.6 Aquaculture*................................................................................................................ ......... 25
9.7 Modernization of fish ing port facilities ................................................................................ 26
9.8 Market promotion for fishery and aquaculture products* .................................................... 26
9.9 Loans to young fishermen.................................................................................................... .2 7
9.10 Preretirement of fishermen* ................................................................................................ .2 7
9.11 PESC A*..................................................................................................................... ........... 28
9.12 Modernization of fishing vessels* ........................................................................................ 28
* Programmes with Community cofinancing
II. INDUSTRY AND ENERGY .............................................................................................. 29
1. Grant scheme for collection and recovery of waste oil .................................................... 29
2. Interest-subsidy scheme – Ships ........................................................................................ 29
3. 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.......................................................... 30
4. Initiatives being carried out under the Trade and Industrial Development Act .......... 31
5. Danish Fund for Development of Enterprises
Danish Fund for Development of Enterprises Act........................................................... 33
6. The Energy Package (CO 2- and SO 2-tax) ......................................................................... 34
7. The Arrangement of Industrial Zones .............................................................................. 35
8. Expatriate scheme according to article 48E of the Tax at Source Act........................... 36
9. Job training and individual job training under the Act on an active labour
market policy.................................................................................................................. ..... 37
10. Enterprise allowance ........................................................................................................ .. 38
11. Pilot project with subsidies to enterprises which conclude training contracts
with adults .................................................................................................................... ....... 38
12. Pilot project concerning employment of persons with high education in
small and medium-siz ed enterprises ................................................................................. 39
13. Subsidies to special measures  to reduce repetitive work................................................. 40
14. Grant scheme for investme nts in energy savings ............................................................. 41
15. Electricity Saving Trust Act No. 1209............................................................................... 41
16. Grant scheme for reimbursement of CO 2tax expenses to enterprises with a
high energy consumption ................................................................................................... 42
17. Investments in energy saving s in private en terprises ...................................................... 43
18. Act No. 1088 regarding amendments to the Electricity Supply Act............................... 43
19. Grant scheme for elec tricity gen eration............................................................................ 44
III. OTHER ENERGY SUBSIDIES ........................................................................................ 46
1. Law 3 of 3 January 1992 on Governmental subsidies to finish the
extension of the district heating network.......................................................................... 46
2. Act on taxes on natural gas and on gas from 30 May 1997, Measures
in favour of the natural gas sector in Denmark ............................................................... 46
3. Energy Research Programme (ERP) ................................................................................ 47G/SCM/N/48/EEC/Add.3
Page 4
Page
4. Act No. 35 of 18 January 1995 regarding amendments in the Electricity
Supply Act ..................................................................................................................... ...... 48
5. Law No. 1089 of 20 December 1995;  Law on amended Law on
Development of Renewable Energy – i.e. Solar Heating ................................................. 48
6. Law No. 944 of 27 December 1991 as amended with Law No. 1210 of
27 December 1996 ............................................................................................................... 49G/SCM/N/48/EEC/Add.3
Page 5
SUBSIDIES AND STATE AID TO DANISH AGRICULTURE AND FISHERIES
1998
Notification under Article 25 of the Agreement on Subsidies and Countervailing Measures.
INTRODUCTION
This notification covers in principle all national aid to the Danish agricultural and fisheries
sectors in the fiscal years 1997 (1 January-31 December) and 1998 and the budgeted amounts for the
fiscal year 1999.  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:
(2) Title of programme: English
(2) (Title in Danish)(3) Form of subsidy
(a) Grants
(b) Tax relief
(c) Subsidies financed by recycled revenues from taxes and duties
(d) Subsidized rents(e) Loans at a lower rent
(f) Guarantees
Other forms of subsidies and financing of working capital for public service companies
(4) Amount used on the programme in 1997(F: final), 1998(E: Estimated or F: final), 1999 (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)
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 by
Denmark.  In order to make them easily distinguishable from the purely nationally financed
programmes, they are listed under a separate heading.G/SCM/N/48/EEC/Add.3
Page 6
1. Income support programmes
1.1
2 Refinancing of mortgage loans etc. in agricultural holdings.
 2.Refinansieringsordningen for landbruget
1. FL§ 24.24.44 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 1.1 EU-refunds4. 4. 4.
 3.
e4.
52.54.
48.3 4.
45.5
 5. To ease the financing costs for farmers by reschedu ling existing loans to new long- term low interest
loans.
6. Lasts application date: 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 the
debt 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.
1.2
2.Subsidy to agricultural indexed loans granted in connection with refinancing of mortgage
loans.
2.Statsligt afdragsbidrag til jordbrugslån i forbindelse med refinansieringsordningen for landbruget.
1. FFL§ 24.24.45 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 1.2 EU-refunds4. 4. 4.
3.
d4.
11.64.
9.14.
9.6
5. To ease the financing cost for farmers by reducing the payment on certain indexed loans.
6. Lasts application date: 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 applicants’ debt percentage at the time of application.
10. Estimates are not available.
Other. Aid is no longer available.G/SCM/N/48/EEC/Add.3
Page 7
1.3
2. Subsidy to payment of agricultural indexed loans
2.Jordbrugslån med afdragsbidrag
1. FFL§ 24.24.53 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 1.3 EU-refunds4. 4. 4.
3
e4.
7.34.
5.7 4.
5.9
5. To reduce the financing costs in agriculture by subsidising the payment of 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.
1.4
2. Debt rescheduling scheme for farmers
2. Gældssaneringsordningen
1 FFL§ 24.24.41.20 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 1.4 EU-refunds 4. 4. 4.
3
d + f4.
0,05 4.
0.64.
0.2
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/48/EEC/Add.3
Page 8
1.5
2. Debt reorganisation for farmers
2. Gældssaneringsordning
1. FFL§ 24.24.41.30 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 1.5 EU-refunds4. 4. 4.
3
f4.
1.6 surplus4.
12.1 surplus4.
8.1
5. To ease the future interest burden and improve the availability of funds through re-scheduling of
short-term high interest loans.
6. Lasts application date:  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, - and
1.200.000,- 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.
1.6
2. Aid scheme to benefit less-favoured agricultural areas
2. Tilskud til jordbrugere på visse småøer
1. FFL§ 24.23.14 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.EU-refunds4. 4.
1.84.
1.8
 3
a 4. 4.
7.64.
5.4
5. The aim is to give compensatory allowance to farmers in the less favoured areas.  The less favoured
areas are the islands 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. 479 of 12 June 1996, as amended by Act No. 404 of 10 June 1997.
 Council Regulation (EC) 950/97.
9. In order to receive the compensatory allowance the farmer has to be resident on one of the islands,
that are appointed as less favoured areas.The grant is given to area- and livestock units and the maximum number of eligible units are 120.
The maximum grant per farmer is approximately DKK 67.000,-.
10. In 1998 there has been 9,633 eligible area units and 4,681 eligible live stock units on about 500
farms.
Other.G/SCM/N/48/EEC/Add.3
Page 9
2. Structural Programmes
2.1
2. Young Farmers Scheme
2. Yngre jordbruger ordningen
1. FFL§ 24.24.05 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 2.1 EU-refunds4.
38.2 4.
39.84.
42.6
 3
e4.
Loan: 5.7.
Direct aid: 59.74.
Loan: 1.4.
Direct aid:
61.64.
Loan: 15.5.
Direct aid: 56.1
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. 397 of 14 June 1995
9. The State guarantees loans of a maximum amount of DKK 75,000.00 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 mainoccupation and fulfil certain conditions regarding education and capital.
10. Estimates are not available
Other.
2.2
2. Land consolidation programme
2. Jordfordeling
1. FFL§ 24.21.01.10 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 2.2 EU-refunds4.  -  4. -  4. -
3
a4.
18.2 4.
20.64.
21.9
5. To improve the physical structure of farm holdings by re-allotment through land consolidation.
6. No limit
7. None. There has not yet been made use of the programme
8. Legal basis: Order No. 902 of 11 October 1996. Repealed 6 January 1999, after which date the
scheme will not receive any further financial support.
9.
10. Estimates are not available
Other.G/SCM/N/48/EEC/Add.3
Page 10
2.3
2. Workmen’s houses in rural areas
2. Landarbejderboliger
1. FFL§ 24.24.31 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 2.3 EU-refunds4. 4. 4.
3
e4.
04.
0 4.
0.1
5. Help farm workers to be able to finance their ow n home and thereby ensuring the availability for the
agricultural sector.  The programme came to an end in 1975, and expenses in 1998 relate torefinancing of loans given before that time
6. The last loan was given in 1977, and will be paid out over a period of 20 years with an end in 1997.
The budget in 1999 relates only to refinancing of older loans.
7. No information is available. The character and size of the programme indicates that there will be no
trade effects
8. Legal basis: Act No. 344 of 15 May 1997
9. The purpose of the programme was to help farmers to get a place of their own and  thereby ensuring
  availability of labour in the agricultural sector.
10. Estimates are not available
Other.
3. Environmental Programmes
3.1
2. Agricultural investments with the aim of protecting and improving the environment
2. Miljøforbedrende investeringer i landbruget, investeringstilskud
1. FFL§ 24.23.45.10 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 3.1 EU-refunds4.   - 4.  - 4.  -
3
a 4.
57,84.
39.84.
37.0
5. Aid to farmers investing in storage facilities sufficient to meet the requirements concerning the
spreading and utilisation of manure in the fields.
6. Lasts application date: 31 March 1996 (for some groups 31 December 1996). Aid is paid as a lump
  sum, 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
9. To be eligible the capacity of storage facilities must be approved by the local authorities. 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/48/EEC/Add.3
Page 11
3.2
2. Guarantee for loans for agricultural investments wi th the aim of protecting and  improving the
environment
2. Miljøforbedrende investeringer i landbruget, garanti for lån
1. FFL§ 24.23.45.20 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 3.2 EU-refunds4. 4. 4
 3
f4.
0.4 4.
0.24.
0.6
5. Aid to farmers investing in storage facilities sufficient to meet the requirements concerning the
spreading and utilisation of manure in the fields
6. Lasts application date: 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
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.
4. Measures to Compensate for Losses Due to Damage to Agricultural Production or
Means of Production
4.1
2. Guaranteed “drought-loans” with repayment subsidy
2. 1992-tørkehjælpsordningen
1. FFL§ 24.24.43 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 4.1 EU-refunds4. 4. 4.
3
f + d4.
04.
04.
0.2 surplus
5. To ease the consequences of the 1992-drought by subsidising the farmers who suffered the most
6. Lasts application date: 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: DKK1 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/48/EEC/Add.3
Page 12
4.2
2. Guaranteed “drought-loans” with interest subsidy
2. 1987-tørkehjælpordningen
1. FFL§ 24.24.43 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 4.2 EU-refunds4. 4. 4.
3
f + d4.
No expenses4.
No expenses4.
Scheme
expired
5. To ease the consequences of crop loss in 1987 due to drought by subsidizing certain farmers
6. Last application year: 1988. Term of loans: 7 years
7. The programme has no effects on trade
8. Legal basis: Act No. 867 of 23 December 1987
9. To be eligible, the applicant must have a drought-induced loss of at least 25 per cent and a debt
percentage of at least 65. For a loan between DKK 25.000,- and DKK 0.5 million a guarantee for 80
per cent of the loan is granted. A 5-per cent interest subsidy is granted for 3 years, if the crop loss isat least 40 per cent.
10. Estimates are not available
Other.
4.3
2. Control of animal diseases and salmonella in poultry
2. Erstatninger ved nedslagning af dyr og andre udgifter ved bekæmpelsesforanstaltninger
1. FFL§24.32.12./14. Mio. DKK 1997 (F) 1998 (E) 1999 (B)
Form no.EU-refunds4.
1.74.
7.34.
4.4
3
a (+c)4.
43.44.
51.04.
60.2
5. In relation to control of animal diseases and zoonoses compensation is paid for animals, feed etc.
destroyed as part of the control programme. 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 1999.
7. The programmes have no effects on trade.
8. The programmes are based on laws No. 381 1993 and 1106 1994.
9.
10. The programmes have no effects on employment.
Other.G/SCM/N/48/EEC/Add.3
Page 13
5. Research
5.1
2. Public Agricultural and Fishery Research Institution
2 .Landbrugs- og fiskeriforskning
Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.EU-refunds4.  --4. 4.
3
g4.  
420.94.
420.24.
456.8
 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 the
results.
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
 9.
 10. The programmes have no effects on employment.
Other.G/SCM/N/48/EEC/Add.3
Page 14
6. Agriculture
6.1
2.Promille Levy funds and Production levy Funds
2.Promille- og produktionsafgiftsfonde
F FL§ 24.24.51  Mio. DKK. 1997 (F) 1998 1999 (B)
Form no.  EU-refunds4.       14,6 4       0 4          0
 3
a
c 4
218.3352.1 4.
199.4 (E)
344.9 (B) 4.
228.7373.3
5. The Promille Levy Funds were until 1996 financed by recycled revenue from the land tax levied by
counties (4.3 per thousand of the value of land). From 1996 this financing was replaced by a similar
amount from the tax on pesticides. Additional financing may take place, provided that the use of the
financing will follow the conditions of the Promille Levy FundsThe means from the Promille Levy Funds are used to subsidise the different Production Levy Funds
(i.e. funds pertaining to different agricultural  commodities; beef, pigmeat, potatoes, milk etc.).
The purpose of the Promille Levy Funds and the Production Levy Funds is to contribute to the
financing of common activities in the sectors of agriculture and gardening as regards sales
promotion, research, product development, consultancy, training, prevention of diseases etc.
 6. The 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 Act No. 414 of 13 June
1990 on the administration of the European Community’s regulations on market system for
agricultural products etc., as amended re. Consolidate Act No. 65 1996.
9. The Production Levy Funds use their revenues which, beside the subsidy from the Promille Levy
Funds, consist of parafiscal production levies, to finance activies such as sales promotion, research,
product development etc. in accordance with Article 7of Act No. 414.
The Promille and Production Levy Funds have existed since 1978 and are based on annual
budgeting. The budgets are approved by the Ministry and must meet all legal requirements at both
national and Community-levels.
6.2
2. Aid to product development of agricultural and fishery products
2. Produktudvikling af jordbrugs- og fiskeri produkter
1. FFL§ 24.23.17 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.  6.2 EU-refunds4.
14.54.
14.44.
3.
a4.
191.74.
158.44.
182.3
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. 340 of 14 May 1992, as amended
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 sector and
2) to the development of processed products in agricultural and fishing industry and to
3) marketing of products from the agricultural and fishery sector.G/SCM/N/48/EEC/Add.3
Page 15
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 additi onal expenses is granted. 50 per cent of the
expenses can be subsidised up to a maximum of 100.000 ECU, if more than 50 per cent of the total
expenses concern basic science, or the project concerns development of organic agricultural
products, or the project is a pilot project conducted by a small or medium sized enterprise. More than
50 per cent of the expenses can be 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 projectand 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 generalmaximum aid in absolute figures.
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.
10. Estimates are not available
Other.
6.3
2. Advisory services in agriculture
2. Tilskud til jordbrugets konsulentvirksomhed
1. FLL§ 24.22.01 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 6.3 EU-refunds4. 4. 4.
3.
a4.
135.64.
1354.
139.2
5. To further the extension of new techniques of produ ction 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/48/EEC/Add.3
Page 16
6.4
2. Compensation of the losses encountered by some local authorities due to the introduction of a
ceiling on agricultural land tax rates
 2.Kompensation til kommunerne i forbindelse med grundskyldspromillen
1 FFL§ 24.21.04.55 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.  6.4 EU-refunds4. 4. 4.
3.
g 4.
30.84
Scheme expired4.
Scheme expired
5. In order to ease the burden of higher rate of land tax, a limit of 15 per thousand on agricultural
holdings has been implemented nation-wide. This has made it necessary to compensate the local
municipalities for their loss of tax revenue
6. 3 years (1994-1996). Prolonged for the year 1997
7. The programme has no effects on trade
8. Legal basis: Act No. 808 of 4 December 1990
9. The difference between the local land tax rate and the ceiling of 15 per thousand.
10. Estimates are not available
Other.
7. Community-Related Programmes
7.1
2.Aid for investments in agricultural holdings
2.Investeringsstøtte til jordbrugsbedrifter, rentetilskud
1 FFL§ 24.23.05 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 7.1 EU-refunds4.
82.74
89.34.
82
3
d4.
272.34.
233.84.
242
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. 479 of 12 June 1996 as  amended. Implementing EEC Regulation 950/97
9. To be eligible the applicant must have agriculture as main occupation, be in need of support, and
present an investment plan. For investments in agri cultural buildings, an annual subsidy of 5.5 per
cent is granted for 10 years.  For other investments, an annual subsidy of 4 per cent is granted for 7
years. For new entrants under 40 years of age a one-off supplement of approximately 8.75 per centfor investments in buildings and approximately 5 per cent for other investments is granted
10. Estimates are not available
Other.G/SCM/N/48/EEC/Add.3
Page 17
7.2
2. Co-operation with recognized groups
2. Etablering af samarbejde
1. FFL§ 24.23.05.20 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.EU-refunds4. 4. 4.
3.
a4.
0.34.
0.24.
0.3 mill
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. Permanent scheme
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.
7.3
2. Vocational training in agriculture
2. Efteruddannelse inden for jordbrugserhvervene
1 FFL§ 24.22.21 Mil. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.  7.3 EU-refunds4.
1.74.
1.54.
1.8.
3.
a4.
10.74.
7.44.
7.7
5. To further the vocational training in agriculture
6. Permanent scheme
7. The programme has no effects on trade
8. Legal basis: Act No. 17 of 14 January 1987, as amended. Implementing EEC Regulation 2328/91
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/48/EEC/Add.3
Page 18
7.4
2. Environmentally friendly farming
2. Miljøvenlige jordbrugsforanstaltninger
1 FFL§ 24.23.04 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.  7.4 EU-refunds4.
25.44.
24.64.
31.6
3
a4.
25.24.
24.74.
23.1
5. To encourage environmentally friendly extensive cultivation of the areas and to minimise the risks of
pollution on the ground water resources
6. Permanent programme. The present budget period (EU-co-financing) runs from 1993-97
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.
Implementing EEC Regulation 2078/92
9. An annual subsidy of between DKK 500 and 5000 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.
7.5
2. Early retirement from farming
2. Ophørsordningen
1. FFL§ 24.23.50 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.  7.5 EU-refunds4.
12.74.
11.94..
14.2
3.
g4.
12.74.
12.84.
14.1 surplus
5. To secure the income of elderly farmers, who stop farming, and to improve the economic viability ofthe remaining farm-holdings through their taking over the holding participating in the early
retirement scheme
6.Application period 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. 1106 of 22 December 1993, as amended. Implementing EEC Regulation
2079/92
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 67th.
birthday of the applicant. It consist of an annual compensation of DKK 37.392,-  and an annual
allowance of DKK 2.337,- per hectare of released land, within a ceiling of DKK 93.480,- a year
10. In 1998 approximately 44 persons made use of the scheme
Other.G/SCM/N/48/EEC/Add.3
Page 19
7.6
Set-aside of arable land: Scheme expired, no expenses in 1997, 1998 or 1999.
7.7
Environmental friendly farming in sensitive areas: Scheme expired, no expenses in 1997,
1998 or 1999.
7.8
2. Establishment of shelter belts
2. Læhegn
1. FFL§ 24.23.41 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.  7.8 EU-refunds4.
12.14.
6.54.
12.8
3.
a4.
14.54.
16.94.
23.9
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: Order No. 812 of 21 December 1988, as amended. Implementing EEC Regulation
2080/92
9. For collective establishment of shelterbelts: 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
Other.G/SCM/N/48/EEC/Add.3
Page 20
7.9
2.Organic farming
2. Økologisk jordbrug
1. FFL§ 24.23.25 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 7.9 EU-refunds4.
17.74.
54.74.
80.9
3.
a4.
65.14.
118.34.
212
5. The aid is given to facilitate the transition and improve the conditions for organic  farming.
6. Period for present programme: 1994-99
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 conv erted to organic farming within 4 years from the
beginning of the conversion. It is also a condition that the organic production on the holding ismaintained 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 continui ng organic cultivation and DKK 450 during
conversion to organic production (2 years) is paid per hectare each year.
Additional preemies are paid to specific measures (to increase the organic pork- and corn-
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 pct. 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 1998 there were 610 new applicants (net)  to the organic farming scheme, concerning conversion
to organic farming.
Other.
7.10
2. Investments for improving the processing and marketing conditions for agricultural and
forestry products
2. Projektstøtteordningen
1. FFL§ 24.23.07 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no. 7.10 EU-refunds4.
84.
25.84.
41.7
3.
a4.
28.14.
5.44.
16.5
5. To improve the processing and marketing conditions for agricultural and forestry products
6. Period of present programme: 1994-99
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. 89 of 23 February 1991. Im plementing EEC Regulations 866/90 ( 951/97) and
867/90
9. To be eligible, the investors must manufacture agricultural or forestry products. Maximum aid of up
to 17.5 per cent of the eligible investment
10. Estimates are not available
Other.G/SCM/N/48/EEC/Add.3
Page 21
7.11
2.Development of specific rural areas
2. Tilskud til fremme af udviklingen i særlige landdistrikter, mål 5b
1 FFL§ 24.23.15 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.  7.11 EU-refunds4.
29.3.4.
37.44.
38.3
3.
a4.
9.64.
38.44.
48.8
5. To improve the development of specific rural ar eas by means of subsidizing 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. 198 of 9 April 1986. Implementing EEC Regulation 2081/93
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
Other.
7.12
2. Farm Relief Services
2. Tilskud til vikarordninger
1. FFL§ 24.22.15.10 Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.7.12 EU-refunds4. 4. 4.
3.
a4.
39.14.
35.64.
36.4
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 farmer’s sickness or
absence because of in-serving training. Aid is also given to the training of substitutes
10. Estimates are not available
Other.G/SCM/N/48/EEC/Add.3
Page 22
8. Other Programmes
8.1
2. Control of Mastitis and other veterinary measures
2.Forskellige tilskud (bekæmpelse af mastitis hos kvæget, aflatoksinundersøgelser af mælk, dyrlæger i
særlige tilfælde)
1. FFL§24.32.09. Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.EU-refunds4.  4.  4.
3
c (+a)4.  
14.64.
8.74.
8.7
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.
7. The programmes have no effects on trade.
8. The Mastitis control-programme is based on Order No. 853 1991.
9. The amount of the subsidy is fixed in the annual budget. The subsidy is paid, when the dairy-
organization has justified that the Mastitis control has been carried out in accordance with the said
Order.
10. The programmes have no effects on employment.
Other.
8.2
2. Measures to improve the production of honey
2. Forbedring af vilkårene for honningproduktion
1. FFL§  24.22.01
  FFL§  24.33.03Mio. DKK. 1997 (F) 1998 (E) 1999 (B)
Form no.EU-refunds4. 4.
1.44
1.5
3.
a/g4. 4.
1.44.
1.5
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
1999 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/48/EEC/Add.3
Page 23
9. Fisheries
9.1
2. Fishing vessels – permanent cessation
2. Ophørsordning for fiskerfartøjer
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.
DK/XXX/21-00/017/00EU-refunds4.
46.14.
10.54.
17.5
3.
a4.  
46.14.
10.54.
17.5
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 programme expires in 1999.
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. 2468/98.
10. Estimates are not available.
Other.
9.2
2. Fishing from the coast (hauling up vessels)
2. Ophalingsspil
1. FFL§ 24.26.10 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4. 4. 4.
3.
a4.  
0.14.
0.14.
0.1
5. To support the fishing from the coast off North Western Jutland.
6. The arrangement is permanent.
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 to maintenance of hauling-up winches for vessels.
10. Estimates are not available.
Other.G/SCM/N/48/EEC/Add.3
Page 24
9.3
2. Processing
2. Forarbejdning og afsætning af fiskerivarer og akvakulturprodukter
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4.
35.44.
46.34.
65.0
3.
a4.  
7.14.
9.44.
13.0
5. The subsidy is granted to improve the efficiency, quality and utilization of resources in plants
dealing with the processing of fish and fishery products for direct human consumption.
6. The programme expires in 1999.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulation No. 2468/98.
10. Estimates are not available.
Other.
9.4
2.Consultancy for Fishery and Aquaculture
2. Konsulentvirksomhed i dambrugs- og fiskerierhverv
1. FFL§ 24.26.10 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4. 4. 4.
3.
a4.  
2.44.
2.34.
2.9
5. The subsidy is granted for consultancy to help fishermen making economically sound decisions and
to advise them about the Danish and Community structural measures according to the Single
Programming Document.
6. The arrangement is permanent.
7. The program has no effect on trade.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with Government Regulation No 923 of 11 December 1998.
10. Estimates are not available.
Other.G/SCM/N/48/EEC/Add.3
Page 25
9.5
2. Construction of vessels
2. Bygning af fiskerfartøjer
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.
DK/XXX/21-00/017/00EU-refunds4.
1.64.
3.84.
71.7
3.
a4.  
0,34.
0,84.
14,3
5. To ensure a competitive renewal of the fishing fleet.
6. The programme expires in 1999.
7. The programme has no effect on trade.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulations No 2080/93 and No. 2468/98.  The subsidy
granted is 30 per cent of the investment cost. From mid-1998 aid is only given to projects with a net
reduction or no net increase of capacity.
10. Estimates are not available.
Other.
9.6
2. Aquaculture
2. Støtte til akvakultur
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4.
5.64.
16.94.
25.0
3.
a4.  
1.14.
3.44.
5.0
5. Modernization and development of aquaculture installations.
6. The programme expires in 1999.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulations No 2080/93 and No. 2468/98.
10. Estimates are not available.
Other.G/SCM/N/48/EEC/Add.3
Page 26
9.7
2. Modernization of fishing port facilities
2. Modernisering af havnefaciliteter
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4.
5.84.
10.14.
29.5
3.
a4.  
2.04.
5.24.
8.5
5. Modernization and development of fishing port facilities.
6. The programme expires in 1999.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulations No 2080/93 and No. 2468/98.
10. Estimates are not available.
Other.
9.8
2. Market promotion for fishery and aquaculture products
2. Afsætningsfremme
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4.
17.24.
12.44.
17.5
3.
a4.  
17.24.
12.44.
17.5
5. Promotion of new market outlets for fishery and aquaculture products.
6. The programme expires in 1999.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulations No 2080/93 and No. 2468/98.
10. Estimates are not available.
Other.G/SCM/N/48/EEC/Add.3
Page 27
9.9
2. Loans to young fishermen
2. Lån til yngre fiskere
1. FFL§ 24.26.10.20 &
§24.26.10.30Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4. 4. 4.
3.
E
f4.  
0.01
04.
0.09
04.
1.1
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 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.
9.10
2. Preretirement of fishermen
2. Supplerende ophørsstøtte for erhvervsfiskere
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4.
1.14.
1.24.
1.2
3.
a4.  
0.54.
0.64.
0.6
5. The aim is to facilitate retirement for vessels owners and fishermen employed on a fishing vessel
which are decommissioned with governmental aid.
6. The programme expires in 1999. 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 EC Regulation No. 2468/98 and act No 1081 of 22 December
1993.
10. Estimates are not available.
Other.G/SCM/N/48/EEC/Add.3
Page 28
9.11
2. PESCA
2. Pesca-initiativerne
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4.
5.94.
9.04.
43.5
3.
a4.  
2.34.
7.44.
30.1
5. The aim is to modernize and restructure the fishery sector and to develop other sectors in regions
dependant on the fishery sector.
6. The programme expires 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 Regulations No 4253/88 and No. 2052/88.
10. Estimates are not available.
Other.
9.12
2. Modernization of fishing vessels
2. Modernisering af fiskerfartøjer
1. FFL§ 24.26.30 Mio. DKK. 1997 (F) 1998 (F) 1999 (B)
Form no.EU-refunds4.
29.64.
47.84.
60.0
3.
a4.  
5.94.
9.64.
12.0
5. The aim is to modernize the fishing fleet, and thereby improve the efficiency, quality and utilization
of resources in the fishing sector.
6. The programme expires in 1999.
7. Estimates are not available.
8. Act No. 483 of 12 June 1996.
9. Aid is granted in accordance with EC Regulations No 2080/93 and No. 2468/98.
10. Estimates are not available.
Other.G/SCM/N/48/EEC/Add.3
Page 29
II. INDUSTRY AND ENERGY
1. Grant scheme for collection and recovery of waste oil
1. Name of the programme
Grant scheme for collection and recovery of waste oil.  The legal basis of the scheme is the
Environmental Protection Act, article 55a and the Statutory Order no. 1179 of 23 December 1993 on
grant on recovery of waste oil.
2. Form of the subsidy
Grants.
3. Amount of subsidy or subsidy per unit
A grant of DKK 1,980 of each ton waste oil, which is recovered as fuel for energy plants with
license given by local authorities.  In 1997 grants amounted to DKK 44.4 million in total.
4. Purpose of the subsidy
The grant is given as a compensation for the mineral oil fee in 1993 which was introduced
into Danish law as a consequence of the Internal Ma rket (EU).  The aim of the grant is to secure the
continued economic incentive for an environmental sound collection and recovery of waste oil
through sale of the oil to energy plants.
5. Duration of the subsidy
There is no limitation on the grant scheme.
6. Assessment of the trade effects
It is not possible to give statistical information on the trade effects.
2. Interest-subsidy scheme - Ships
1. Name of the programme
Interest-subsidy scheme.  Supplementary appropriation request no. 3 from 13 October 1993,
approved by the Parliament Finance Committee.
2. Form of the subsidy
Interest-subsidyUnder 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 instalment corresponding to
the dates for payments of interest and instalments on the loan raised.G/SCM/N/48/EEC/Add.3
Page 30
3. Amount of subsidy or subsidy per unit
In 1998 a total of DKK 717 million was paid out under the interest-subsidy scheme.  The
budget figure for 1999 is DKK 830 million.
4. Purpose of the subsidy
The purpose of the interest-subsidy scheme is to support shipowners building ships at Danish
shipyards.
5. Duration of the subsidy
The interest-subsidy scheme is available for ships contracted between 13 October 1993 and
31 December 1998 (until the "Agreement  Respecting Normal Competitive Conditions in the
Commercial Shipbuilding and Repair Industry" is expected to enter into force) and delivered at the
latest 31 December 2001.
6. Assessment of the trade effects
Figures as at 31 December 1998:No. of ships having received interest-subsidy:  24
No. of ships having commitment to receive interest-subsidy:  32No. of shipyards involved:  4
The scheme has been approved by the European Commission under the 7th Directive on
subsidy to shipbuilding.  The subsidy element vari es 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 lessthan ECU 10 mio., and to 9 per cent for ships with a higher contract value.  If the ship receives any
other subsidy, the interest-subsidy is reduced accord ingly.  A ship with a contract value of ECU
10 mio. 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. 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. Name of the programme
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.
2. Form of the subsidy
This scheme gives the possibility to provide guarantees for loans to build ships at Danish
shipyards.
3. Amount of subsidy or subsidy per unit
Guarantees for app. DKK 1,061 mio. have been granted under the scheme.G/SCM/N/48/EEC/Add.3
Page 31
4. Purpose of the subsidy
The purpose of the guarantee scheme is to support shipowners building ships at Danish
shipyards.
5. Duration of the subsidy
The scheme is available for ships contracted before 31 December 1998 (until the "Agreement
Respecting Normal Competitive Conditions in the Commercial Shipbuilding and Repair Industry" is
expected to enter into force).
6. Assessment of the trade effects
Figures as at 31 December 1998:Actual no. of guarantees issued:  21
Total liability:  DKK 599,578,940
No. of shipyards involved is:  4
The scheme has been approved by the European Commission under the 7th Directive on
subsidy to shipbuilding and the subsidy element is calculated by the Commission to be 1 per cent of
the contract value.
 4. Initiatives being carried out under the Trade and Industrial Development Act
1. Name of the subsidy scheme or the subsidy project
Trade and Industrial Development Act.  A number of initiatives are being carried out
under the Trade and Industrial Development Act.  The aim is to promote the competitiveness of the
Danish trade and industry.
2. Form of the subsidy
Grants, guarantees, and loans which are being repaid if commercial success is achieved.
3. Subsidy per unit or total
The subsidies for the individual areas are mentioned in table 1 below.  For 1998 the
subsidy are equal to the subsidy of the year incl. transfers from previous years.  For 1999 only the
figures of the budget are stated.
It is not possible to state the individual recipients of the subsidy, since these are very
numerous.G/SCM/N/48/EEC/Add.3
Page 32
TABLE 1
Subsidy for individual areas
1998 1999 (Budget)
Million DKK Promises Payments Promises Payments
Export Promotion 121 119 120 135
Initiatives for SME´s and
Entrepreneurs53 63 16 21
Development of Competence and
Technology566 525 560 642
Regional Industrial Development 118 86 120 145
Total857 794 816 943
On the area of initiatives for SME´s and entrepreneurs the average grant per company was
approximately DKK 300,000.
On the areas of development of Competence and Technology the average grant per
company/institution was approximately DKK 500,000.
On the area of export promotion the average grant per company was approximately
DKK 600,000 per company/institution.
On the area of Regional Industrial Development, it is not possible to state the average subsidy
as the regional funds are also administered regionally, and the Agency for Development and Trade
and Industry does not directly monitor the all payments to companies.
On a number of closed programmes– where no promises are now given – are not included in
the table.  Limited payments will continue over the next years, as projects terminate.
The general conditions for obtaining subsidy under the Trade and Industrial development Act
is:
- That the company itself finance more than 2/3 of the project.
- That the results of the projects are accessible for other companies.
- That the company at least once a year files a report on the development of the project.
The specific conditions vary from initiative to initiative.
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.G/SCM/N/48/EEC/Add.3
Page 33
4. 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.
5. Period of validity
The period of validity for the individual initiatives differs.  Every year it is considered
whether funding should be provided for individual initiatives and schemes.
6. Assessment of the trade effects
It is not possible immediately to estimate the trade effects of the subsidies, because it is a
question of horizontal initiatives, which are not restricted to specific industries.
5. Danish Fund for Development of Enterprises.
Danish Fund for Development of Enterprises Act
1. Name of the subsidy scheme or the subsidy project
Danish Fund for Development of Enterprises.
Danish Fund for Development of Enterprises Act.
2. Form of the subsidy
Grant, guarantees and loans on market terms, repayable in cases of success.
3. Subsidy per unit or total
The scheme is horizontal.  The total financing of about 125 projects are the following:
Grant: DKK 5.0 millionGaranties: DKK 1.1 millionRepayable loan: DKK 243 millionLoans for Research and Development can be given up to 45 per cent of the total costs.
Loans for Market Development only to SME.  Loans can be given for the develop part of
experience and expert knowledge on new geographical markets.
The enterprises pay interest of the loans which are being repaid if commercial success is
achieved.
4. Purpose of the subsidy
The purpose with the scheme is to increase re search and development activities in private
enterprises and to increase the enterprises competence in new areas.G/SCM/N/48/EEC/Add.3
Page 34
5. Duration of the subsidy
The scheme is not limited in time.
6. Assessment of the trade effects
The scheme is horizontal and the loans are given to R&D and marketing activities in all
sectors.
6. The Energy Package (CO 2- and SO 2-tax)
1. Name of the subsidy scheme or the subsidy project
The Energy Package (CO 2- and SO 2-tax)..
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)
2. Form of the subsidy
The CO 2- tax
The rate of the CO 2-tax is DKK 100 per tonne CO 2 discharged when the product is
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 increasing until year2000 as the reimbursement to industry is reduced annually.
The CO
2-tax is reimbursed 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 reimbursements are made.  Companies entering into
agreements with the Ministry of Energy can get further reductions in the CO2 tax when undertaking
an energy-saving action plan.
The SO2-tax
The SO2-tax on all energy products was introduced 1 January 1996.  The rate is DKK 10 per
kg SO 2 discharged into the air or DKK 20 per kg S (sulphur) in the energy product.
A reduction in the SO2-tax for coal is given to energy-intensive businesses, which have
undertaken an energy-saving action plan.
The tax revenue from the CO 2- and SO 2-tax
The revenue from the CO 2- and SO 2-tax is lead back to trade and industry as investment
grants and as subsidies to the payment of the CO 2-tax if the business has made an agreement with the
Ministry of Energy to undertake an energy saving action plan.  Furthermore the revenue is spent on a
general reduction in the taxes on labour (social contributions).G/SCM/N/48/EEC/Add.3
Page 35
There are no net gains intended in the scheme.  The reimbursements are available on the basis
of energy-intensity to all companies, regardless of sector or region concerned and the authorities do
not have any discretionary power in the granting of reimbursements.
3. Subsidy per unit or total
Recycled revenue to trade and industry was in 1998 app. DKK 1.9 billion.  When the Energy
Package is fully introduced in year 2000 the recycled revenue will be app. DKK 2.8 billion.
4. Purpose of the subsidy
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 agreedenvironmental targets.
5. Duration of the subsidy
There was a general review of the Energy Package in 1998.  It will continue in application.
6. Assessment of the trade effects
 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 forthe increased fiscal burden, which the national CO
2- and SO 2-taxes place on trade and industry in
Denmark.
7. The Arrangement of Industrial Zones
1. Name of the subsidy scheme or the subsidy project
Name:  The Arrangement of Industrial Zones (Especially favourable fiscal conditions for
industrial zones).
2. Form of the subsidy
Until the end of the income year 1999, enterprises established in an industrial zone are
allowed to depreciations for fiscal purposes by double the rate on business property situated in an
industrial zone, on condition that the enterprise was established in the industrial zone before the end
of 1994.  Until the end of 1999, the same enterprises are exempt from stamp duty on documentswhich concerns the enterprise’s purchases of immovable property situated in industrial zones.  The
same enterprises are exempt from municipal land taxes and service charges on the same immovable
property.
3. Subsidy per unit or total
Industrial zones are established in 10 municipalities.  According to information available only
a few enterprises were established in an industrial zone before the end of 1994.
4. Purpose of the subsidy
The arrangement results from a political agreement of May 1992 on intensified efforts to
active unemployed persons, and aims at a strengthening of industrial development and employment inG/SCM/N/48/EEC/Add.3
Page 36
economical exposed areas.  The arrangement is a pilot scheme subject to a limited period of time and
geographical restrictions, see also 3 and 4
5. Duration of the subsidy
See 2.
6. Assessment of the trade effects
The Ministry of Taxation does not posses any information on whether the arrangement of
industrial zones has been used in 1998.
8. Expatriate scheme according to Article 48 E of the Tax at Source Act
1. Name of the subsidy scheme or the subsidy project
Expatriate scheme according to Article 48 E of the Tax at Source Act.
2. Form of the subsidy
The possibility of a 25 per cent flat rate tax on the gross salary of scientists and key personnel
becoming residents of Denmark for a limited period of time.  The scheme is open to employees in allsectors.
3. Subsidy per unit or total
The most recent estimate indicate a total subsidy amount of DKK 360 million in 1998.  The
loss of revenue may be estimated to DKK 150 million.  By March 1999, 1,138 employees were taxed
under the expatriate scheme.
4. Purpose of the subsidy
Political aim:  To improve Denmark’s international competitiveness by promoting research
and product development.
5. Duration of the subsidy
Time periods:  An employee may be taxed under the expatriate scheme for a period up to
three years and may subsequently remain a resident of Denmark for a period of up to four years.  Ifthe employee remains a resident of Denmark after the expiry of the four-year period the tax benefits
for the three-year period will be lost.
6. Assessment of the trade effects
The scheme is not considered to have significant effects on trade.G/SCM/N/48/EEC/Add.3
Page 37
9. Job training and individual job training under the Act on an active labour market
policy
1. Name of the subsidy scheme or the subsidy project
Job training and individual job training under the Act on an active labour market policy
2. Form of the subsidy
Wage subsidy in the case of a net increase in the number of employees.  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.
3. Subsidy per unit or total
The total amount in paid as wage subsidies in 1998 was DKK 268.3 million.
4. Purpose of the subsidy
To give the unemployed a chance of maintaining or re-acquire vocational skills and
qualifications which will enable them to obtain ordinary employment.
5. Duration of the subsidy
In the private sector the wage subsidy period for unemployed persons in the benefit period
(the first two years) may as a maximum be one year.  In the case of wage subsidies for more than
six months, the employer shall offer training to the unemployed for a period corresponding to 1/2 of
the subsidy period or shall employ the person concerned without any subsidy for a periodcorresponding the subsidy period.  The employment period must be at least 6 months.
As regards unemployed persons in the activation period (the following three years) the
subsidy period in job training may as a maximum be six months with the same employer.  The
conditions on training or subsequent employment al so apply in this case.  In individual job training
the subsidy period may be the full period and the conditions about training or subsequent employment
also apply to individual job training.
Agreements concerning job training and individual job training with a wage subsidy with
private employers in an ordinary work place may not  be concluded for a period expiring later than by
the end of 1999.
6. Assessment of the trade effects
The trade effects 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/48/EEC/Add.3
Page 38
10. Enterprise allowance
1. Name of the subsidy scheme or the subsidy project
Enterprise allowance under the Act on an active labour market policy.
2. Form of the subsidy
Allowance of 50 per cent of the maximum rate of unemployment benefits for up to two and a
half years to unemployed persons who set up their own business as their main occupation.
3. Subsidy per unit or total
The total amount paid in 1997 was DKK 596 million.
4. Purpose of the subsidy
To support unemployed persons who want to set up their own enterprise as their main
occupation.
5. Duration of the subsidy
The enterprise allowance has been established as a scheme according to the de minimis rules.
6. Assessment of the trade effects
Number of persons starting to receive an enterprise allowance was 2,673 and the stock was
9,080 persons.  It is not possible to calculate the trade consequences as it is a general support schemeand not support to specific enterprises.
11. Pilot project with subsidies to enterprises which conclude training contracts with adults
1. Name of the subsidy scheme or the subsidy project
Pilot project with subsidies to enterprises which conclude training contracts with adults.
2. Form of the subsidy
Wage subsidy during periods of practical training in an enterprise.
3. Subsidy per unit or total
The subsidy to unemployed persons amounts to DKK 40 per hour during practical training in
an enterprise and DKK 35 for employed persons.  The subsidy can be given during the first two and ahalf years of the agreed training period.  In 1997 the subsidies for the whole country amounted
DKK 35.3 million.
4. Purpose of the subsidy
The scheme has been introduced in order to grant financial support to enterprises which
conclude vocational training contracts with unemployed persons or employees over the age of
25 years.G/SCM/N/48/EEC/Add.3
Page 39
5. Duration of the subsidy
Subsidies to enterprises may be given in respect of training contracts concluded before
1 January 2000.
6. Assessment of the trade effects
A total number of 1,464 persons started in subsidized training in 1997.It is not possible to estimate trade consequences as it is a matter of a general support scheme,
and not subsidies to specific enterprises.
12. Pilot project concerning employment of p ersons with high education in small and
medium-sized enterprises
1. Name of the subsidy scheme or the subsidy project
Regional pilot projects with employment of persons with high education in SMEs under the
Order on management and administration of the central pool for special labour market measures.
2. Form of the subsidy
Wage subsidy.  The subsidy can be paid to private enterprises with up to 50 employees in
connection with recruitment of unemployed persons with high education in special project which may
promote the development and growth potential of the enterprises.
It is a condition for payment of this subsidy that the projects aims at reducing or avoiding
bottlenecks and/or structural problems at the regional labour market.  No subsidies can be granted to
recruitment of unemployed persons with high education if there is already a shortage of labour with
the qualifications concerned in the region.
With a view to promoting geographical mobility subsidies may be granted for projects with
the possibility of recruiting unemployed persons with high education from other regions where there
is no shortage of the labour concerned.
The employees must have completed education of at least three years’ duration in the form of
full-time studies at a university or similar institution and must have been unemployed for a total
period of five months within a period of eight months.
It is further a condition that the enterprise is not already employing highly educated persons
with the same education, apart from the owner, or ha s done so within the past two years.  The subsidy
may only be granted to one employee per enterprise.
3. Subsidy per unit or total
The subsidy covers 50 per cent of the wage costs of the enterprise for the person concerned,
subject to a maximum of DKK 11,000 per month.  The N
As from the date of introduction of the scheme in March 1997 and up to 24 February 1998 an amount
of DKK 2.2 million has been used on this scheme.
The subsidy is granted as de minimis  support, cf the rules on this.G/SCM/N/48/EEC/Add.3
Page 40
4. Purpose of the subsidy
The political objective of this scheme is to ensure the maintenance of and increase in
employment by extending the growth potential of SMEs through recruitment of unemployed persons
with high education in special projects.
5. Duration of the subsidy
Ongoing.
6. Assessment of the trade effects
From the start in March 1997 and up to 24 February 1998, 101 recruitment  cases have been
agreed or completed.  The figure for 1998 is expected to be slightly higher due to phasing-in period of
the project in 1997.
No calculations have been made of its trade consequences.
13. Subsidies to special measures to reduce repetitive work
1. Name of the subsidy scheme or the subsidy project
Subsidies to measures to reduce repetitive work (work which involves a health risk, etc. due
to repeated performance of the same movements 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 Ministry of Labour.
2. Form of the subsidy
Grant.
3. 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 ship-building industry , transport, and the coal
mining industry where prior approval from the Euro pean 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 1998
total subsidies amounted to DKK 20.8 million.
Subsidies may be granted for activities which aim at doing away with or reducing strains from
repetitive work, including projects concerning job 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.
4. 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
it is possible to transfer the results to other enterprises and work processes.G/SCM/N/48/EEC/Add.3
Page 41
5. Duration of the subsidy
The deadline for applications for subsidies was 31 December 1997.
6. Assessment of the trade effects
No statistical data are yet available for 1998.
14. Grant scheme for investments in energy savings
1. Name of programme / Legal basis
Grant scheme for investments in energy savings in private enterprises
 
2. Form of subsidy
Grants
 
3. Amount of Subsidy
In 1998 grants amounted to DKK 474.6 Mio. 7320 enterprises received grant payments.
Grants are calculated as a percentage of the costs.
4. Purpose of subsidy
The objective of the grant scheme is to support measures which ensure better energy
efficiency or energy savings in private enterprises.  The scheme aims at reducing the emission of CO 2
from the enterprises.
5. Duration of subsidy
No time limitation on the grant scheme. An evaluation was carried out in 1998. The grant
scheme is likely to be prolonged.
6. Trade effects / Statistical information
It is not possible to give statistical information on the trade effect of the grant scheme. It is a
general grant scheme not directed at specific types of enterprises.
15. Electricity Saving Trust Act No 1209
1. Name of programme/Legal basis
Electricity Saving Trust act number 1209 of December  2, 1996.
2. Form of subsidy
Grant scheme for development, marketing, procurement and utilisation of electricity saving
appliances and equipment
3. Amount of subsidyG/SCM/N/48/EEC/Add.3
Page 42
In 1998 the grant payment committed to private enterprises amounted to  only 80.000 DKK.
4. Purpose of subsidy
The objective of the grants is to promote electricity savings in public and private households
in accordance with socio-economic and environmental considerations.
5. Duration of subsidy
There is no dead line for the subsidy scheme.
6.        Trade effects / Statistical information
It is not possible to give statistical information on the trade effects of the grants.
16. Grant scheme for reimbursement of CO2 tax expenses to enterprises with a high energy
consumption
1. Name of programme/Legal basis
Grant scheme for reimbursement of CO² -tax expenses to enterprises with a high energy
consumption.
2. Form of subsidy
Grants.
3. Amount of subsidy
In 1998, grant payments amounted to DKK 65,6 million.  Only certain energy intensive
companies can obtain the grant.  It is a condition that they undertake an energy audit and enter into an
energy agreement with the Danish Energy Agency.  The energy agreements contain detailed lists ofprojects and activities the companies have to carry out.  200 private enterprises have entered an
energy agreement by 1998.
4. Purpose of subsidy
The scheme aims at reducing the emission of CO² from private enterprises with a high energy
consumption.  These enterprises may obtain reimbursements of CO² tax expenses if they undertake anenergy audit and carry out energy saving measures.
5. Duration of subsidy
There is no time limitation on the grant scheme.  In 1999, an evaluation of the grant scheme
has taken place.
6. Trade effects/Statistical information
None.G/SCM/N/48/EEC/Add.3
Page 43
17. Investments in energy savings in private enterprises.
1. Name of programme/Legal basis
Grant scheme for investments in energy savings in private enterprises
2. Form of subsidy
Grants
3. Amount of Subsidy
In 1998 grants amounted to DKK 474.6 Mio. 7320 enterprises received grant payments.
Grants are calculated as a percentage of the costs.
4. Purpose of subsidy
The objective of the grant scheme is to support measures which ensure better energy
efficiency or energy savings in private enterprises.  The scheme aims at reducing the emission of CO 2
from the enterprises.
5. Duration of subsidy
No time limitation on the grant scheme. An evaluation was carried out in 1998. The grant
scheme is likely to be prolonged.
6. Trade effects/Statistical information
It is not possible to give statistical information on the trade effect of the grant scheme. It is a
general grant scheme not directed at specific types of enterprises.
18. Act No. 1088 regarding amendments to the Electricity Supply Act
1. Name of programme/Legal basis
Act No. 1088 of December the 20th 1995 regarding amendments in the Electricity Supply Act.
(Settling of electricity from small-scale combin ed heat-and-power plants or electricity-production
facilities, which utilise biogas, waste or other renewables.)
2. Form of subsidy
According to the EU-Commission the Act foresees a guarantee for purchasing and a price for
selling, which according to the article 92,1, can ma ke out grant, if these two elements give an
economic advantage for the small-scale combined heat-and-power plants or electricity production
facilities which utilise biogas, waste or other renewables.
3. Amount of subsidy
N/AG/SCM/N/48/EEC/Add.3
Page 44
4. Purpose of subsidy
The act secures payment to the electricity-supply enterprises that produce electricity from
small-scale combined heat-and-power plants or utilise biogas, waste or other renewables.
5. Duration of subsidy
The system contains a de facto time limit, as the electricity supply in the year of 2003 will be able to
absorb the electricity, which is produced according to this Act.
6. Trade effects/Statistical information
N/A
19. Grant scheme for electricity generation
1. Name of the subsidy scheme or the subsidy project
Grant scheme for electricity generation.
2. Form of the subsidy
Grant scheme for electricity generation.
3. Subsidy per unit or total
In 1997 grants amounted to DKK 1,074.1 million.  The scheme comprises four types of
grants:
(i) A grant of DKK 0.07/kWh to generators of electricity from natural gas and/or
incineration.
(ii) A grant of DKK 0.1/kWh to generators of electricity at power stations with a mean
power of 3 MW or less, and to power stations which establish collective heat supply
in connection to the power station.
(iii) Existing power stations with a mean power above 3 MW which receive
DKK 0.07/kWh and are particularly in urgent need of economic support can receive
up to DKK 0.03/kWh.
(iv) A grant of DKK 0.17/kWh to generators of electricity from renewable energy or
biomass except windmills owned by power stations which receive DKK 0.1/kWh.
4. Purpose of the subsidy
The objective of the grant scheme is to reduce CO 2-emissions.
5. Duration of the subsidy
The time limitations corresponding to above mentioned types of grants are:In general the agreement runs for 10 years however with the following exceptions:G/SCM/N/48/EEC/Add.3
Page 45
For Industrial power stations the grants are limited to 6 years and for power stations with a
mean power of 4 MW or less the generation of electricity will be subsidized for a maximum of
eight years.
The DKK 0.03/kWh grant is limited to five years.
6. Assessment of the trade effects
It is not possible to present statistical information on the trade effects of the scheme.G/SCM/N/48/EEC/Add.3
Page 46
III. OTHER ENERGY SUBSIDIES
1. Law 3 of 3 January 1992 on governmental subsidies to finish the extension of the district
heating network
1. Name of programme/Legal basis
Law 3 of 3 January  1992 on Governmental subsidies to finish the extension of the district
heating network.
2. Form of subsidy
The subsidy is given to construction of new district heating network and to maintenance of
existing district heating network.  To obtain the su bsidy for construction of district heating network, it
is conditioned that the municipal council has imposed  an obligation to be connected to the district
heating network in question.
3. Amount of subsidy
For construction of new network, the subsidy can go up to 100 per cent of the costs.  For
maintenance, the subsidy can cover 50 per cent at maximum.  In 1998 the payment of subsidies
amounted to DKK 82 million.
4. Purpose of subsidy
The purpose of the subsidy scheme is to ensure that energy savings connected to the use of
surplus heat in the electricity production are realis ed so that the energy and environmental advantages
will be obtained. It demands an efficient district heating network.
5. Duration of subsidy
The whole subsidy scheme is valid from 1 January 1992 until 31 December 1997.  There will
still be payments due for projects finished before 31 December 1997.
6. Trade effects / Statistical information
It is not possible to give statistical information of the trade effects of an extension of the
district heating network covered by the scheme.
2. Act on taxes on natural gas and on gas from 30 May 1997, Measures in favour of the
natural gas sector in Denmark
1. Name of programme/Legal basis
Act on taxes on natural gas and on gas from 30 May 1997, Measures in favour of the natural
gas sector in Denmark.
2. Form of 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.
 G/SCM/N/48/EEC/Add.3
Page 47
3. Amount of subsidy
In 1998 the total compensation to the sector amounted to approximately DKK 2.5 billion.
4. Purpose of 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 of
supply, and a significant debt burden has been established within the gas sector.
 
5. Duration of subsidy
The measures will be subject to a revision in 2000.
6. Trade effects / 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.
3. Energy Research Programme (ERP)
1. Name of programme/Legal basis
Energy Research Programme (ERP)
2. Form of subsidy
Grants
3. Amount of subsidy
In 1998, 65 applicants received grants from the ERP. Grants amounted to DKK 97 million,
the average grant was DKK 1.5 million.  No major changes to the overall amount is envisaged.  The
grants are given on the basis of applications, so the size of the grants and the number of successful
applicants may vary.
4. Purpose of subsidy
The objective of the grant scheme is to support energy research and technological
development.
5. Duration of subsidy
There is no time limit for the grant scheme.  Grants are limited to 3 years for each individual
project.
6. Trade effects/Statistical information
In 1998, approximately 68 per cent of the grants were given to projects conducted by public
institutions and approximately 32 per cent of the grants were given to projects conducted by public or
private companies.  There is no pre-defined share for the private sector.G/SCM/N/48/EEC/Add.3
Page 48
4. Act No. 35 of 18 January 1995 regarding amendments in the Electricity Supply Act.
(The possibility to include losses realised on investments in co-ordinated activities in the
price of electricity.) (SEAS-act.)
1. Name of programme/Legal basis
Act No. 35 of 18 January 1995 regarding amendments in the Electricity Supply Act.  (The
possibility to include losses realised on invest ments in co-ordinated activities in the price of
electricity.) (SEAS-act.)
2. Form of subsidy
Loss on investments
3. Amount of subsidy
The total loss realized on investments in  the co-ordinated activities of SEAS is
DKK 213.5 million.  The DKK 213.5 million will be incl uded in the price of electricity within a
period of 15 years. (DKK 14.2 million each year.)
4. Purpose of subsidy
The act secures that the electricity enterprise s can include losses realised on investments in
co-ordinated activities in the price of electricity.
5. Duration of subsidy
The approval is conditional on the loss-generating activity having terminated no later than
October the first 1994.
6. Trade effects / Statistical information
N/A
5. Law No. 1089 of 20 December 1995:  Law on amended Law on Development of
Renewable Energy – i.e. Solar Heating
1. Name of programme/Legal basis
Law No. 1089 of 20 December 1995:  Law on am ended Law on Development of Renewable
Energy – i.e. Solar Heating
2. Form of subsidy
Grant scheme
3. Amount of subsidy
In 1998 the grant payment amounted to DKK 18.8 million.G/SCM/N/48/EEC/Add.3
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4. Purpose of subsidy
The objective of the programme is to reduce CO 2-emissions through development and
demonstration of renewable energy technologies with particular emphasis on solar heating.
5. Duration of subsidy
The grant scheme is not subject to a time limitation.
6. Trade effects/Statistical information
It is not possible to present statistical information on the trade effect as the programme
supports only development and demonstration of t echnologies pertaining to domestic utilization of
solar power.
6. Law No. 944 of 27 December 1991 as amended with Law No. 1210 of 27 December 1996
1. Name of programme/Legal basis
Law No. 944 of 27 December 1991 as amended with Law No. 1210 of 27 December 1996.
2. Form of subsidy
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 wind power, biogas, hydropower, etc.
3. Amount of subsidy
The subsidy is given as a compensation for the CO2-tax and the tax on electricity.  The
subsidy is given as DKK 0.07/kWh for the amount of electricity produced on combined heat andpower 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 DKK 0.1 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 DKK
0.17/kWh for the amount of electricity produced on renewable sources.
4. Purpose of subsidy
The subsidy is given to environmentally friendly power generation as a compensation for the
C02-tax and the tax on electricity.  The purpose of the scheme is to reduce the CO2-emission by
increasing the share of co-generation, reduce the power production based on coal and promote the
production of electricity based on renewable sources.
5. Duration of subsidy
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 orless the subsidy can only be given for the first 7 years of operation.  The subsidy scheme has been
changed in 1999 in connection with the reform of the power sector.  The subsidy of DKK 0.17/kWh
for the amount of electricity produced on renewable sources will be dropped.  The subsidy will
instead be paid via the electricity prices.G/SCM/N/48/EEC/Add.3
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6. Trade effects / Statistical information
It is not possible to give statistical information of the trade effects of the scheme.
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