Danish lawmakers agree new corporate carbon tax

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Danish lawmakers agree new corporate carbon tax

A bird flies near chimneys emitting smoke in the harbour area of Copenhagen.

COPENHAGEN Reuters - Danish lawmakers agreed on Friday a new corporate carbon tax, the highest in Europe, which will target companies both in and outside the EU's carbon quota system.

A high carbon tax is essential in order to meet Denmark's 2030 goal to reduce greenhouse gas emissions by 70% from 1990 levels.

The biggest single contribution to reduce emissions by 2030 is Jeppe Bruus, said in a statement.

The total CO 2 levy will be 1,125 Danish crowns, $159 per tonne for companies subject to the EU Emissions Trading SystemEU Emissions Trading System ETS, and will consist of a 375 crowns fee on top of the projected 2030 price of EU carbon permits of 750 crowns.

The government said that companies within so-called mineralogical processes, such as cement maker Aalborg Portland, Denmark's largest CO 2 emitter, will pay a reduced price of 125 crowns per tonne on top of the ETS to prevent an exodus of production.

Companies that are not subject to the ETS, the EU's main policy tool for reducing emissions, would pay a 750 crowns carbon tax.