Policy - 05/May/2022

Denmark sets plans to make businesses pay for their carbon emissions

A uniform carbon tax across most of Denmark’s economy has broad political support, but clarifying the finer points of the package will decide whether it is accepted by the wider business community

Danish government plan generally ignores the idea that additional taxation would see businesses quit the country

 

AMBITIOUS PRICING Denmark’s proposed carbon price, above that of Europe’s emissions trading system (ETS), is high enough to change business cases and spur decarbonisation efforts

 HEAVY DISCOUNT Heavy-industry may be offered a discount tax rate

 KEY QUOTE This is a clear recognition that the EU ETS is not working well enough and that more is needed ...

 

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