Nummer: 173

Work towards an ambitious CO2 emissions tax in the EU and globally

A global approach to carbon pricing will cut global emissions faster than alternative approaches, while preventing carbon leakage and distortion of international trade and competition. 

It should be an EU priority to inspire and engage other regions of the world to work towards achieving the Paris target through carbon reductions, and carbon taxation with widespread coverage across the globe is one of the most effective tools for that purpose. Therefore, CBAM and EU ETS should only be a first step in the EU's efforts to engage other regions to adopt carbon taxes that support an effective transition of the global economy. 

Although a global price on carbon would be most efficient, a regional approach is needed. Denmark's CO2 emission reduction targets should serve to inspire other countries to follow suit. Therefore, Denmark should work hard to get other EU Member States to adopt additional measures - including an ambitious CO2 emissions tax that goes beyond the EU ETS. This will help ensure a broad-based sustainable transition and ensure a level playing field for European companies competing in international markets.  

Dato:
13. september 2023
Type af anbefaling:
Tidlig interessevaretagelse i EU
Tema:
Tidlig interessevaretagelse
Ansvarlig ministerium:
Klima- Energi- og Forsyningsministeriet
Status på anbefaling:
Følges

EU regulation affected 

CBAM, ETS
 

Companies affected

All sectors covered by the Danish CO2 tax.
 

Justification 

It is necessary to ensure a reduction in CO2 emissions if we are to achieve the Paris target and, at the same time, ensure the necessary funding for the green transition in the EU and globally. At the same time, it will help to ensure that Danish sectors covered by the CO2 tax in Denmark are placed on an equal footing in competition in the internal market and globally. 

A global price signal would incentivize improvements in energy efficiency and introduce a glide path for e.g., alternative low-carbon fuel and energy sources.
 

Expected impact on the industry 

The proposal aims to reduce CO2 emissions and, at the same time, ensure financing for the green transition in the rest of the EU/Global and will, at the same time, create a uniform competitive situation for the Danish sectors covered by the CO2 tax.
 

Economic consequences 

If implemented, the proposal can contribute to ensuring the financing of the green transition outside Denmark's borders and, at the same time, create a uniform competitive situation for the Danish sectors covered by the CO2 tax.
 

Ongoing Danish action

Global action: EU (DG CLIMA) and Denmark (the Ministry of Industry, Business and Financial Affairs and the Ministry of Climate, Energy and Utilities) together with other EU flag states stand united in addressing that the reduction of greenhouse gas emission from global shipping should take place through the International Maritime Organisation (IMO).

 

 

 

The transition to a more sustainable and green society requires solid financing - both public and private. It is necessary to secure this financing - not only in Denmark but also in Europe and globally. A CO2 emissions tax is an important instrument in this context. The Commission is encouraged, in the upcoming work program, to focus on encouraging all EU countries to introduce CO2 taxes, like Denmark has done, and to ensure that the EU works with the same aim in its global relations and agreements.

Regeringen tiltræder Regelforums anbefaling og vil arbejder for en ambitiøs global beskatning af CO2-udledninger.