Denmark Could Reach Climate Target With Carbon Tax, Adviser Says

Denmark has a chance to succeed with its plans of cutting 70% of carbon emissions by 2030 if Prime Minister Mette Frederiksen introduces a new emission fee, the government’s economic advisory council said.

A new tax of 1,200 kroner ($192) per emitted ton would be the cheapest way to reach the target, the council, also known as the economic wisemen, said Tuesday in a report assessing the government’s climate policies. The tax would have a negative socio-economic impact of 4 billion kroner annually or about 0.15% of GDP from 2030.

Announcing a tax “would reduce uncertainties about future climate policies and companies would be able to make necessary green investments with more certainty,” environmental economic adviser Lars Gaarn Hansen said.

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