Anna Fenger 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 ...


Try FORESIGHT - 30 days for €29

Already a subscriber?


Comments are closed.

Related articles

Entry of China heralds emissions trading shake up

When China later this year introduces its emissions trading system, it will double the combined size of all existing carbon markets.

Read more

Investment in energy efficiency could be key to carbon tax success

An ambitious tax on carbon emissions globally and the reinvestment of carbon revenues in energy efficiency could be game changers for the energy transition even if most countries still remain reluctant to entertain such ideas

Read more

American Green New Deal faces gridlock

Political and physical barriers will make it difficult for US Democrats to turn proposals for a Green New Deal in to reality

Read more

United States baulks at the political cost of a carbon price

As major markets around the world add various forms of carbon tax, in the United States a country-wide price on carbon is a political non-starter

Read more

Denmark rolls the dice on CCS

For heavy emitters of carbon, capturing the particle before it hits the atmosphere offers a route to meeting climate change targets. The Danish government is hoping significant investment in the questionable technology will help its hard-to-abate sectors to fulfil ambitions

Read more