The green transition that Danish society is currently undergoing is in many ways good news. But even though the use of fossil energy sources such as diesel, oil and coal is bad climate news, the revenue is good news for the Danish treasury.
But as these energy sources are phased out and green energy sources are phased in, there will be less revenue in the treasury. The Confederation of Danish Industry has calculated that in 2045, when there is political agreement that Denmark should be climate neutral, there will be 20 billion DKK less in the treasury. This is stated by the business organization in a press release.
- It is really good news that the green taxes actually work, and among other things means that more and more citizens and companies are switching to green technologies and solutions, which are absolutely crucial for Denmark to become climate neutral. But the bad news is that in 2045 there will be 20 billion DKK less in the treasury. DKK less in the treasury from green taxes. And no one is talking about this revenue loss or knows how to handle it, says Morten Høyer, political director of DI, and continues:
- Despite increasing taxes on, for example, CO2, the revenue from green taxes will decrease overall because there will be fewer black energy sources to tax in the future. The problem is that the necessary money will not be set aside on the other side of 2035, and we must reach the goal of climate neutrality.
Need for a new social contract
According to DI's analysis, the challenges with the falling tax revenue will already arise in 2035, when it is expected that revenues will fall by ten billion. DKK. The Ministry of Finance's medium-term projections only take into account this part of the development in revenues up to 2035.
Hereafter, a very weak reduction trend is assumed, which does not reflect that Denmark will be climate neutral in 2045, which is why not enough money has been set aside to achieve the goal of climate neutrality. In addition, the period with falling revenues from green taxes coincides closely with the period when deficits in public finances are expected. Therefore,
- This should give reason to revisit the social contract that we have entered into. Just as we are implementing climate policy today so that we do not worsen the climate crisis for future generations, I also believe that we owe it to our children and grandchildren to have the best financial conditions in 2045 to have a strong welfare society, says Morten Høyer.
amp
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
