Climate Mitigation Policy in Denmark: A Prototype for Other Countries

Denmark has a highly ambitious goal of reducing greenhouse gas emissions 70 percent below 1990 levels by 2030. While there is general agreement that carbon pricing should be the centerpiece Denmark’s mitigation strategy, needs to effective, address equity and leakage concerns, reinforced additional measures at sectoral level. The strategy develops can good prototype for others follow. This paper discusses mechanisms scale up domestic pricing, compensate households, possibly combine with border adjustment. It also recommends use revenue-neutral feebate schemes strengthen incentives, particularly transportation agriculture, fisheries forestry, though these could applied more widely.