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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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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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