The government, Alternativet and Enhedslisten have signed a green partial agreement that sets aside 450 million kroner for an electric car subsidy aimed at low-income households outside the big cities, plus a 2.6 billion kroner fund to help low-income homeowners replace oil and gas boilers.
The deal was presented at a press conference on Saturday by Finance Minister Peter Hummelgaard and Climate, Energy and Utilities Minister Samira Nawa of Radikale Venstre, Kristeligt Dagblad reports, carrying coverage from the Ritzau news agency. The agreement is between the government and its support parties, Alternativet and Enhedslisten.
According to the report, Nawa framed the deal as financial help for people who want the green transition but are economically strained. The stated aim is to make it cheaper for Danes on low incomes living outside the largest cities to drop a petrol or diesel car for an electric one.
450 million kroner, with details still open
The agreement earmarks a total of 450 million kroner for the car subsidy scheme over three years, from 2028 to 2030. The design of the scheme and the definition of the target group are not yet set out in the agreement text, per Ritzau. The parties will also examine whether a subsidy for buying an electric car is possible.
The government intends to seek further money from the EU Social Climate Fund. TV 2, which reported the agreement text on November 13, described the car scheme as framed around leasing and said it could start as early as 2028. The broadcaster added that EU climate fund money is being sought for comparable Swedish and French projects.
The parties will draw inspiration from a Swedish model. As described by Ritzau, the Swedish scheme targets households with an annual income of at most 80 percent of the Swedish median. Applicants must also live in certain designated rural areas outside the bigger cities, and can receive up to 64,800 Swedish kronor, just under 44,000 Danish kroner, mostly paid as a monthly amount.
2.6 billion kroner for heating
The second part of the deal sets a financial framework for a forthcoming green heating proposal. Just over 2.6 billion kroner is set aside from 2028 through 2035, according to Ritzau. The money is intended for targeted support to households that struggle to finance a green heating solution, specifically those with a low property valuation and a low income.
As noted by Limfjord Update, the heat pump industry welcomed a steadier support scheme, while Danmarks Naturfredningsforening backs stopping new oil and gas boilers as soon as possible. Boosted.dk reports that the 450 million kroner is linked to a parallel increase of around 1 billion kroner in motor vehicle fees, and that the income limit remains undecided.
What the agreement means for internationals outside the big cities
Two Danish terms matter here. Ejendomsvurdering is the public property valuation used for property taxes, and it is the measure the heating fund will use alongside income. Neither the income threshold nor the geographic boundary for the car scheme has been defined in the agreement, so it is not yet known who will qualify, including residents on a foreign passport.
Both parts of the deal are money set aside for schemes that start in 2028, so there is nothing to apply for at present. Foreign residents who own older homes in rural Denmark with oil or gas heating fall within the group the heating fund describes, but the rules, application route and amounts have not been published. For context on the existing costs involved, see our guide to the total cost of owning a car in Denmark, and our coverage of EV fast chargers around the country.
