Denmark Will Have to Issue a Diesel Tax to Meet Its Climate Goals

The moderate party proposes that a diesel tax must be implemented if Denmark is to hit its 2025 climate target. Both Lars Rasmussen and the Foreign Minister agree with this. There is an emphasis that the rest of the Denmark government is not in agreement with this just yet.

An Ambitious Climate Goal

There is, however, emphasis on meeting the 2025 climate target based on evidence. This is to make it so there is no room for doubt from professionals that the target will be reached by the goal year. With that in mind, there must be a serious critique of the transportation area. This means you must discuss diesel tax from all angles.

This ambition is driven by political parties and not the central government sending it. Currently, the moderates have the climate area ministerial post while the Minister for Climate, Energy and Utilities, Lars Aagaard, is a part of the same Moderate party Rasmussen is.

Both Lars Aagaard and the Denmark government believe the goal of reducing Denmark’s CO2 emissions in 2025 by 50%-54% will be achieved thanks to the blending requirement.

Political Party Disagreeing

The term blending requirement is used to ensure that the biofuel of both diesel and petrol vehicles hit the 2025 benchmark. It is important to consider that this proposal has not been well received by everyone. In fact, there are a few oppositional political parties who believe it is not ambitious enough.

A higher tax on diesel is what the Danish Council for Climate Change believes is needed for the 2025 goal. This tax would mainly affect lorries from the business division.

The political spokesman for the Social Democrats, Christian Rabjerg Madsen, went on to state, “I agree with Lars Rasmussen that the 2025 target must be reached. This is of little doubt. As a government that used to be Social Democratic, this may be the most ambitious climate goals the world has seen and must be achieved.”

He went on to add, “There is a discussion with all parties currently and what specific measures are needed.” This neither denied nor confirmed a diesel tax adopted for the government level.

While in the process of negotiating, the Ministry of Climate sent a memo that private drivers aren’t to be affected overly by this tax when introduced with tax cuts as well. Conversely, business drivers are to be more affected because a higher diesel tax is expected to affect businesses. This memo argues there is a more effective strategy to reach the climate goal through taxes than increasing the number of biofuel cars available.

Sources:

https://www.euractiv.com/section/politics/news/denmark-cannot-avoid-diesel-tax-says-foreign-minister/