Denmark implementing heavy vehicle RUC from 2025 - but not without protest

Initial Danish heavy vehicle charge network

From 2025 Denmark will be the 12th jurisdiction in Europe to have some form of distance-based road user charging (RUC) (or tolls) for heavy vehicles.  Some may argue about the definition (as two of these are essentially network tolls using tolling technology) but the others are Iceland, Switzerland, Germany, Austria, Czechia, Slovakia, Poland, Hungary, Belgium, Bulgaria and Russia.

Key elements of the new scheme, called the "Kilometer-based toll":

• On 1 January 2025 all heavy vehicles with a Gross Vehicle Weight of 12 tonnes or above will have to pay per-kilometre road user charges based on the vehicle's weight and emissions rating. This will apply on the national road network and other main roads, including public roads in "environmental zones". This is a network of around 7,300 km (around 9.7% of public roads, but the roads that carry most of the freight traffic).
• On 1 January 2027 the charge will be extended to all heavy  vehicles of 3.5-12 tonnes Gross Vehicle Weight as well.
• On 1 January 2028 the charge will apply to all public roads in Denmark (a network of around 75,000km).
• On 1 January 2025 Denmark will withdraw from the Eurovignette scheme, which applies to trucks 12 tonnes and above, and requires trucks to prepay a set number of days they are driving on the national road network (trucks can buy an annual Eurovignette).

Average charges will be DKK1.2 per km in 2030 (US$0.17 per km). 

The policy focus is on reducing CO2 emissions. It will apply to all trucks with a gross vehicle weight of 12 tonnes or more. It will be expanded to heavy vehicles of 3.5 tonnes and above from 1 January 2027.

It is being introduced alongside multiple complementary measures:

• Rules on weights and dimensions for trucks on Danish roads are to be eased, enabling larger and heavier trucks to operate
• Improvements to rail freight in Denmark including a loans scheme for rail freight operators.

There will be a single rate geographically across all major roads in Denmark (it will not apply to local roads), with a higher rate for cities with low emission zones. The charge will automatically collect higher fees for the low emission zones.  There will be no VAT as it is legally a tax.

Exemptions

Only the following heavy vehicles will be exempt:

• National armed forces and emergency services vehicles;
• Vehicles adapted and used exclusively for fire and rescue;
• Police vehicles; and
• Vehicles belonging to the "road services" (believed to be maintenance/operations)

Implementation

Unlike almost all other implementation of heavy vehicle RUC anywhere, Denmark is taking a technology neutral approach to how data is measured and collected from heavy vehicles to enable collection of the charge.  Given the number of similar schemes in Europe, it called for accreditation to be a certified service provider, meaning that as long as a private commercial toll/RUC service provider could meet the performance requirements specified, it could be certified to collect the charge.  Denmark has received six application to do so after the deadline of 30 April (to enable initial operation) from the following firms:

• Brobizz (Denmark)
• SkyttelPASS A/S (Norway)
• Telepass S.p.A. (Italy)
• tolltickets GmbH (Germany)
• Toll4Europe GmbH (Germany)
• ØresundPAY (Sweden)

This does not necessarily mean all or any of these operators will be certified, but indicates Denmark has taken an open system approach in encouraging competition in delivering RUC services to heavy vehicles in the country. 

The project is being led by the Danish Road Directorate, but the contract for establishing it was granted to 

Sund & Bælt, a Danish government enterprise responsible for some major infrastructure projects such as the Øresund Crossing between Denmark and Sweden. 

The remuneration of EETS providers will be done under two categories:

• A fixed percentage of the revenue collected (1.5% for the calendar year 2025 and 2% for the subsequent year)
• A fee based on the number of active OBEs (On Board Equipment). An active OBE is an OBE that has been provided by the EETS Provider and installed in a vehicle registered with the EETS Provider, and for which circulation on the tolled road network has been detected at least once for the respective calendar month. (DKK60 per month (US$8.66) for the calendar year 2025, down to DKK15 per month the following year (US$2.17). 

Consider if a Class 5 above 32 tonne truck travelled 100,000km in a year (outside LEZs), it would generate DKK20,000 (US$2885) in gross revenue, so the EETS provider in the first year would obtain DKK300+DKK720=DKK1020 (US$147). So volumes of business matter (and it also encourages EETS providers to target the higher emitting vehicles that generate them more revenue).

Number of vehicles and kilometres driven

Number of trucks registered in Denmark in 2021

Initial installation will be for 35,500 locally registered vehicles, but the foreign vehicles are not included in this.  

Distance driven on Danish roads by heavy vehicles

The total distance to be driven by vehicles subject to the RUC is depicted above.

User experience

It is expected that regular users of the Danish road network will have a contract with an EETS provider (European Electronic Tolling Service) which will supply or use telematics installed in the vehicle.  The vehicle owner will pay the EETS provider, which will then pay the charges to the government.  Denmark is neutral about whether the EETS provider uses On Board Units already installed on trucks, new ones or uses the telematics system already built into some trucks.

Occasional users of the network (visiting trucks from foreign countries that infrequently enter Denmark will be able to buy a single trip ticket for a specific journey online, through the website of the "toll charger" (which is Sund & Bælt). 

Charges

The rates table applying from 1 January 2025 is seen below, it differentiates between three weight categories and five emissions categories with higher rates in low emission zones.

Denmark heavy vehicle RUC charge table

As can be seen rates range from DKK0.20 to DKK2.03 per kilometre (US$0.03 and US$0.29 per kilometre or US$0.048-US$0.47 per mile).  Note this replaces a rate structure of the Eurovignette below:

Eurovignette in DKK

This starts at DKK89 for one day on the network (US$12.85) to up to DK1755 for one year (US$2534), which depending on how much distance a truck travels on the network will determine if it is going to be paying more or less with the new kilometre-based RUC.

Impacts

The burden on Danish business is estimated to be DKK2.5b (US$370 million) offset by DKK1b (US$140m) due to the measures to enable larger trucks on the roads, so the net impact will be US$230m per annum by 2030.

It is estimated to reduce emissions by 0.4 million tonnes by 2030, but with 0.3 million tonnes coming from the road user charge and 0.1 million tonnes by allowing larger trucks on the network.

Summary leaflet here

Opposition

An organised opposition group "the Road Tax Committee" has been set up to oppose the proposal and it has been engaging in protests by blockading roads.  Some of the trucking industry is calling for a delay to implementation until 2030, largely so there are more lower and zero emission trucks available to purchase, so they would not face the highest charges.  The "Road Tax Committee" has since dissolved, but protests and opposition continue.

All of this indicates how important it is to get some support from the trucking industry before introducing charge that are, by and large, likely to charge many of them much more than they do now.

It seems challenging to introduce any form of road user charging without intending to ensure that net revenues will be used to, at least, ensure the road network is well maintained and managed, but there is little expression of this. The messaging is focused on fighting climate change, and nowhere else has this been seen by the trucking industry as a policy it can support. France tried this previously with the abortive Ecotaxe proposal (which I wrote about extensively over nine years ago).

In every other European jurisdiction that has managed to implement heavy vehicle RUC, the objective has been clear - the need to raise revenue from the vehicles that generate the most damage to the road network, including those from foreign jurisdictions. A secondary objective with some has been to encourage more environmentally friendly vehicles, but that is reflected in preferential rates for low emitting vehicles, it is not the primary objective. I would not be surprised if protests continue in Denmark until there is some recalibration of the objectives and policy. 

Hopefully Denmark can reach a point where it finds compromises that brings the trucking industry with it, whether it be about timing, the rate structure, the use of net revenues or any combination of the above (or even consolidating other taxes), so that it too can join the list of jurisdictions with RUC. Bear in mind that it will need to progress it to replace fuel tax revenue in the medium to long term as well.