January 03, 2025 13:36 GMT
EMISSIONS: Study: Denmark's Green Bonds, Carbon Pricing Drive Carbon Neutrality
EMISSIONS
Financial mechanisms like green bonds, carbon pricing, climate insurance, and venture capital, as seen in Denmark, are playing a crucial role in advancing the transition to carbon neutrality, according to a study by Athen’s University of Economics and Business.
- Denmark has seen significant growth in its green bond market, issuing $3.3bn (€3.2bn) in 2022, ranking among the top countries in green bond issuance, the study added.
- The bonds fund renewable energy, energy efficiency, and sustainable transportation projects.
- Denmark's carbon tax, one of the highest globally at €33/t CO2e, has been effective in reducing emissions from energy-intensive industries.
- The Danish Emissions Trading Scheme (DETS), which covers sectors like power generation, industry, and aviation, has led to a significant decline in emissions since its 2005 launch.
- Revenue from carbon pricing supports renewable energy, energy efficiency, and climate adaptation projects. Policies also ensure a just transition, supporting affected industries and communities.
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