Automotive sector faces new EU regulations and Danish tax proposals

New European regulations are set to transform the automotive market. Starting November 29, 2026, all newly approved car models must feature a digital environmental passport. This digital document will provide consumers with easy access to technical data, including fuel consumption and range, via a simple code. By November 29, 2027, the requirement will extend to all new cars on the market.

The regulations introduce strict battery performance standards for electric vehicles. Batteries must maintain at least 80 percent of their original capacity after five years or 100,000 kilometers, and at least 72 percent after eight years or 160,000 kilometers. Additionally, testing will now include performance at minus seven degrees Celsius to reflect actual winter driving range.

In Denmark, the political party Moderaterne has proposed a significant shift in vehicle taxation. Finance and Energy Spokesperson Lars Aagaard suggested replacing the current registration tax with a flat road tax starting January 1, 2028. This proposal aims to make purchasing vehicles cheaper while increasing the cost of driving them, targeting both electric and fossil-fuel vehicles.