Denmark
Denmark
February 25, 2024

Denmark's Electric Horizon: Steering Towards Ultra-Low Emission Fleet Management

The Danish Route to Electrification: Embracing Renewable Energies for a Cleaner Drive

Denmark's Electric Horizon: Steering Towards Ultra-Low Emission Fleet Management
Denmark
February 25, 2024
Denmark's Electric Horizon: Steering Towards Ultra-Low Emission Fleet Management
The Danish Route to Electrification: Embracing Renewable Energies for a Cleaner Drive
Summary

Denmark's journey towards sustainable fleet management and vehicle electrification exemplifies a comprehensive approach to reducing CO2 emissions and enhancing environmental sustainability. Supported by favorable government policies, a strong charging infrastructure, and a public willing to embrace electric mobility, Denmark is leading the way in the transition to green transportation. The strategic increase in BEVs, supported by Denmark's renewable energy-rich electricity grid, demonstrates a commitment to a greener future. As Denmark continues to advance in electric vehicle adoption, its efforts highlight the importance of policy support, technological innovation, and infrastructure development in achieving successful fleet electrification and environmental sustainability. This commitment not only positions Denmark as a leader in sustainable transportation but also contributes to the global effort to combat climate change.

Country General Overview

Introduction

Denmark, a country renowned for its commitment to sustainability, high quality of life, and innovative approach to technology, presents a progressive landscape for corporate fleet management. Situated in Northern Europe and known for its efficient public services, Denmark's corporate sector is keenly focused on optimizing fleet operations. This focus is driven by the need to enhance operational efficiency, reduce costs, and significantly contribute to the country's environmental goals. The approach to fleet management in Denmark aligns with broader national objectives towards green energy, sustainability, and technological innovation.

Geographic and Infrastructure

Denmark's geography is characterized by its peninsular shape, numerous islands, and relatively flat terrain, spanning an area of approximately 42,933 square kilometers. The country has developed an extensive and well-maintained road network of about 74,000 kilometers, facilitating seamless transportation and logistics across its regions. This infrastructure supports corporate fleet operations, enabling efficient logistics solutions within Denmark and connections to the rest of Scandinavia and mainland Europe via bridges and ferries.

Economic

With a GDP of around $355 billion and a population of about 5.8 million people, Denmark's economy is marked by a high degree of welfare, a competitive market, and a significant emphasis on research and development. The country has a substantial rate of vehicle ownership, with approximately 540 motor vehicles per 1000 people, indicating the importance of road transport in both commercial activities and personal mobility. Efficient fleet management is crucial in Denmark for supporting the diverse needs of its economy, minimizing logistics costs, and enhancing the delivery efficiency of Danish businesses.

Environmental Considerations

Environmental sustainability holds paramount importance in Denmark, as evidenced by its top-ranking Environmental Performance Index (EPI) 2022 rank of 1 out of 180 countries, with a score of 77.9. This exceptional ranking reflects Denmark's effective management of environmental policies and its leadership in initiatives aimed at reducing carbon emissions, promoting renewable energy sources, and conserving natural habitats. For corporate fleet management, the environmental context emphasizes the need for sustainable practices, such as using electric vehicles, optimizing routes to minimize emissions, and incorporating green technologies. By prioritizing sustainability, Danish companies can support national environmental objectives, reduce their ecological footprint, and align with global sustainability standards.

Sustainable Fleet Management

Scopes Data - Electrification Recommendation Rank Icon

Electrification Recommendation Rank

Denmark
's Category

Rank A : Low Emission, Highly Favorable for EVs

These countries have a low emission profile and an environment highly favorable for electric vehicles (EVs). Companies operating here have often already begun to adopt battery electric vehicles (BEVs), contributing significantly to a reduction in CO2 emissions. As there's no need to incorporate renewable electricity, it's an ideal location for strategizing.

Same Category Countries

Austria, Belgium, Denmark, Finland, France, Norway, Portugal, Sweden, Switzerland, United Kingdom

Info:

The Electrification Recommendation is derived from two aspects: each country's EV Readiness assessment (based on factors such as Electric Vehicle market share, environmental consciousness, GDP, etc.), and the Electricity Emission Factor (EF). Even if a country has a low Electricity EF, enabling CO2e emissions reduction through transitioning to BEVs, the adoption of BEVs could be challenging if the country lacks adequate infrastructure or faces financial constraints.

Since every company operates in a unique environment, this recommendation might not apply in all cases. However, it can be useful for setting a general direction.

Scopes Data - CO2e From Electricity Icon

Electricity EF Category

Denmark
's Electricity EF

0.143

CO2e kg/kWh

Ref:

Association of Issuing Bodies (AIB) 2021 in 2020

Denmark
's Category

Rank 1 : Low Emission Countries (0.00 - 0.25 kg/kWh)

Info:

Countries with high Electricity EF have less benefit for electrification

  • Rank 1: 0.00 – 0.25 kg/kWh (About 0 – 38 CO2e g/km)
  • Rank 2: 0.25 – 0.50 kg/kWh (About 38 – 76 CO2e g/km)
  • Rank 3: 0.50 – 0.75 kg/kWh (About 76 – 113 CO2e g/km)
  • Rank 4: 0.75 – 1.00 kg/kWh (About 113 – 151 CO2e g/km)
  • Rank 5: More than1.00 kg/kWh (About more than 151 CO2e g/km)
Scopes Data - EV Readiness Icon

EV Readiness Category

Denmark
's Category

Rank 1 : Highly Favorable Environment for EVs

Market Share information
Scopes Data - BEV Icon
2022 BEV

15.9

%

2023 BEV

30.3

%

Scopes Data - HEV Icon
2022 HEV

6.2

%

2023 HEV

4.7

%

Scopes Data - Non-ICE Icon
2022 Non-ICE

43.2

%

2023 Non-ICE

52.4

%

HEV: Only Full Hybrid Vehicles (Does not include
Mild Hybrid Vehicles)

Non-ICE: Total of BEV (Battery Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), HEV (Hybrid Electric Vehicles), and MHEV (Mild Hybrid Electric Vehicles)

2022 EPI Results
Rank

1

/180

Score

77.9

2022 EPI Results : Environmental Performance Index(EPI) provides a quantitative basis for comparing, analyzing, and understanding environmental performance for 180 countries.

Ref:Wolf, M. J., Emerson, J. W., Esty, D. C., de Sherbinin, A., Wendling, Z. A., et al. (2022). 2022 Environmental Performance Index. New Haven, CT: Yale Center for Environmental Law & Policy. epi.yale.edu

Introduction to Sustainable Fleet Management and Electrification Efforts

Denmark's commitment to sustainable fleet management and the transition to EVs is a cornerstone of its national strategy to combat climate change. With one of the world's lowest electricity emission factors, Denmark creates an ideal environment for the electrification of corporate fleets. This initiative is further supported by the Danish government's ambitious policies, including significant incentives for EV adoption and investments in charging infrastructure. The country's proactive approach not only aims to reduce greenhouse gas emissions but also to position Denmark as a leader in green transportation within the European Union and beyond.

Current Vehicle Landscape: Preferences and Powertrain Segments

The Danish vehicle landscape is rapidly evolving, with a noticeable shift towards electric and hybrid vehicles. In 2023, the market share of Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs) saw significant increases, signaling a growing preference for sustainable transportation options among consumers and businesses alike. Popular models include the VW ID.3 and Tesla Model 3, reflecting the diverse range of electric vehicles that cater to different segments of the market. Despite these changes, Internal Combustion Engine (ICE) vehicles still hold a portion of the market, though their dominance is steadily declining in favor of cleaner alternatives. This transition underscores Denmark's broader commitment to reducing its carbon footprint and embracing renewable energy sources.

Denmark

Grid.js Table

HEV: Only Full Hybrid Vehicles (Does not include
Mild Hybrid Vehicles)

Non-ICE: Total of BEV (Battery Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), HEV (Hybrid Electric Vehicles), and MHEV (Mild Hybrid Electric Vehicles)

Electric Vehicle Market Overview and Trends

Denmark's electric vehicle market is experiencing robust growth, characterized by a substantial increase in EV registrations. In 2022, the fleet of electric vehicles grew by 70%, highlighting the country's accelerated shift towards electrification. This surge is attributed to comprehensive support from the government, including tax incentives and subsidies for EV buyers. Electric and plug-in hybrid vehicles now constitute a significant portion of new car sales, underscoring the Danish public's and corporations' readiness to adopt greener transport solutions. The trend is expected to continue, driven by Denmark's commitment to becoming carbon neutral and the increasing availability of electric models across various vehicle segments.

Energy Context: Electricity Emission Factors and Implications for Electrification

Denmark boasts one of the world's lowest electricity emission factors at 0.142 kg CO2e/kWh, thanks to its extensive use of renewable energy sources such as wind and solar power. This advantageous energy profile makes Denmark an ideal location for the electrification of transportation. Transitioning from ICE vehicles to BEVs can lead to significant reductions in CO2 emissions, nearly 75% to 100% for a compact vehicle. Denmark's energy context not only facilitates a substantial decrease in the environmental impact of transportation but also enhances the sustainability credentials of corporate fleets opting for electrification.

Challenges and Opportunities in EV Adoption

While Denmark's EV adoption rate is among the highest, challenges such as initial vehicle costs and the need for more comprehensive charging infrastructure persist. However, the opportunities outweigh these challenges, with the government and private sector investing heavily in expanding the network of charging stations. The Danish public's high environmental awareness, coupled with favorable policies, creates a conducive environment for further EV growth. Additionally, Denmark's leadership in renewable energy provides a unique opportunity to power electric fleets with clean electricity, setting a benchmark for sustainable transportation globally.

Additional Insights: Shaping the Future of Transportation

Denmark's strategic approach to electrification is shaping the future of transportation, with a clear focus on sustainability and innovation. The country's low emission electricity and high EV adoption rates exemplify a successful transition towards green mobility. Denmark's efforts in promoting electric vehicles, supported by robust policy measures and public-private partnerships, are paving the way for a sustainable transportation ecosystem. This transition not only contributes to Denmark's environmental goals but also offers a model for other nations looking to reduce their transportation sector's carbon footprint.

Country Case Study

The "Base Fleet" percentage is set according to the sales ratio of each powertrain in Denmark for the year 2023. (For countries where sales ratios cannot be obtained, it is assumed all are ICE vehicles.) The "Recommended Fleet" is designed to be realistic (based on a rank determined by the Electricity Emission Factor Category and EV Readiness Category, deciding a practical range) and efficient in reducing CO2e emissions. It is not expected that the entire fleet will switch to this mix at once but rather after one or two renewal cycles over about 4 to 8 years, considering the usual fleet renewal period is around 4 years. This is viewed as a recommendation for the fleet composition in 4 to 8 years.

The calculation of CO2e emissions is based on a fleet of 100 vehicles traveling an average of 30,000 km per year. Therefore, if your company's fleet size in Denmark is 1,000 vehicles, multiplying the results by 10 will give you an approximate value. For fuel, it is assumed all vehicles use petrol (2345.02 CO2e g/L), and for electricity, the average emission factor of Denmark is used. For PHEVs, it is calculated assuming 50% electricity usage and 50% fuel usage.

Analysis of Fleet Transition from Current State to Sustainable Future

This refers to the average CO2e emissions per kilometer calculated based on the actual energy (Fuel and Electricity) used. It also takes into account the size of the vehicles used in Denmark's fleet.

Scopes Data - ICE Icon

ICE

(CO2e g/km)

Scopes Data - HEV Icon

HEV

(CO2e g/km)

Scopes Data - PHEV Icon

PHEV

(CO2e g/km)

Scopes Data - BEV Icon

BEV

(CO2e g/km)

ICE

HEV

PHEV

BEV

Denmark stands at the forefront of sustainable transportation, with its fleet transition strategy poised to set new benchmarks in environmental stewardship. Currently, the Danish corporate fleet comprises a base mix of 71 ICE vehicles, 6 HEVs, 6 PHEVs, and a progressive count of 16 BEVs. The reasonable recommended transition amplifies this green initiative, suggesting a future fleet mix of 6 ICE, 13 HEVs, 8 PHEVs, and a substantial increase to 72 BEVs. This transition is propelled by a favorable electricity emission factor of 0.14252 kg CO2e/kWh, which makes the case for electrification not just environmentally sound but also economically prudent.

This strategic shift acknowledges Denmark's leadership in renewable energy, aligning with a national ethos of sustainable development. The recommended transition underlines a commitment to drastic CO2 emission reductions while catering to the high employee interest in BEVs and leveraging the well-developed EV infrastructure. With the country's vehicle sales in 2023 including more than 30% BEVs, Denmark is effectively navigating the road to a sustainable future, with corporate fleets leading the charge.

Analysis of CO2 Emission Reductions Through Fleet Transition

Analysis of CO2 Emission Reductions Through Fleet Transition

CO2e From Fuel  (Scope 1)

CO2e From Electricity (Scope 2)

Base Fleet Mix Case
Reasonable Recommended Fleet Mix Case

Denmark's transition towards a greener corporate fleet is set to deliver significant CO2 emission reductions. The base fleet mix's total CO2e emissions, largely from ICE vehicles, amount to 268 tons. The shift towards a more balanced mix with a strong preference for BEVs is predicted to cut down ICE emissions to 23 tons, with HEVs and PHEVs collectively adding 52 tons. The remarkable increase in BEVs in the recommended mix to 72 units aligns with Denmark's low electricity emission factor, adding only 44 tons of CO2e emissions from electricity.

Altogether, this presents a total CO2e emission of 121 tons for the recommended fleet mix, a substantial decline from the 308 tons in the base case. This reduction is pivotal for Denmark, reflecting the nation's dedicated efforts in combating climate change and its capability to harness renewable energy for transportation needs. The corporate sector's transition to a greener fleet is a microcosm of the country's broader environmental aspirations, showcasing the tangible benefits of integrating BEVs into the national fabric.

Comparative Analysis of CO2e Emissions Across Fleet Scenarios

Comparative Analysis of CO2e Emissions Across Fleet Scenarios

CO2e From Fuel  (Scope 1)

CO2e From Electricity (Scope 2)

Exploring various fleet scenarios, Denmark's path to reducing CO2e emissions through different electrification strategies becomes evident. The current base fleet mix, with a modest number of BEVs, results in 308 tons of CO2e emissions. The shift to the recommended fleet mix significantly lowers total emissions to 121 tons, demonstrating the environmental benefits of adopting more HEVs and BEVs.

Comparatively, an all-ICE fleet would maintain high CO2e emissions at 374 tons, underscoring the necessity to move away from traditional vehicles. An all-HEV fleet decreases emissions to 281 tons, highlighting the efficiency of HEVs. The scenario involving PHEVs brings the emissions down to 217 tons, illustrating the intermediate benefits of PHEVs. The most profound reductions are witnessed in the all-BEV scenarios, particularly when powered by a grid with increasing shares of renewable electricity, plummeting emissions to as low as 15 tons with 75% renewable electricity.

These scenarios underline Denmark's advantageous position in utilizing its low-emission electricity for maximum environmental benefit. With each step towards an all-BEV fleet, the country capitalizes on its robust renewable energy infrastructure, setting a leading example in the pursuit of sustainable corporate mobility and a greener future.

https://scopesdata.com/sustainability-country-information/denmark-2023

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