Denmark

Denmark holds its 4th-place ranking in this year’s CCPI and is again the highest-ranked of all countries surveyed. Overall, Denmark receives a high rating, but not the very high needed to enter the top three, which remain vacant. Denmark earns a very high rating in the Renewable Energy category, high in GHG Emissions and Climate Policy, and medium in Energy Use.

In 2022, the new Danish government announced more ambitious climate change targets, proposing to reach net zero by 2045 instead of 2050 and reducing CO2 emissions nationally by 110% – reaching a negative level in 2050 compared with 1990 levels.

World’s first tax on livestock emissions
Supporting these goals, the government has concluded the historic “Agreement on a Green Denmark” agreement, levying tax on livestock emissions and restoring agricultural land. Denmark is the first country in the world to introduce a tax on livestock emissions. This was a measure the CCPI national experts strongly advocated in the previous year.

From 2030, the effective cost of tax farmers pay will amount to DKK 120 (about USD 17) per tonne of CO2-equivalent (CO2e) emitted. This will further rise to DKK 300 (about USD 43) from 2035 onward. The government will introduce a 60% tax deduction favouring climate-efficient farms. Tax revenue will be put back into the sector and reinvested in green initiatives, climate technology, and production transformation, targeting agricultural sectors facing transitioning difficulties.

A Proactive Leader in Loss and Damage Support

Denmark has invested heavily in the international climate debate and has taken a central position, owing to both diplomacy and political positions. Notably, it has been proactive in negotiations on loss and damage and at the forefront in providing financial support for initiatives to respond to loss and damage. The country has committed to allocating at least 60% of its climate finance toward adaptation efforts.

Denmark’s initial commitment and representation also sends an important signal, facilitating dialogue and contributing to strengthening links with the Global South, providing an important platform for Danish leadership on loss and damage and, more generally, in global climate policy. The Scandinavian country is part of the Beyond Oil and Gas Alliance (BOGA), an international coalition of governments working toward phasing out oil and gas.

Denmark now has the challenge of maintaining its existing engagement level, strong positions, and proactive role in further international negotiations and discussions.

Key Outcomes

CCPI Experts

National experts that contributed to the policy evaluation of this year’s CCPI chose to remain anonymous.