Michael Svarer to head green expert group

Professor of economics Michael Svarer, Aarhus BSS at Aarhus University, will head an expert group tasked with presenting different scenarios for the taxation of CO2 emissions.

2021.02.25 | Ingrid Marie Fossum

Professor of Economics Michael Svarer Photo: Private

In order to reach the goal of a 70 per cent reduction in emissions that impact the climate by 2030, Denmark plans to introduce a consistent taxation on CO2. The tax is supposed to increase the cost of opting for black energy instead of green energy, thereby promoting a green transition. Professor of economics Michael Svarer, Aarhus BSS at Aarhus University, will head an expert group tasked with examining possible models for implementing the tax on CO2. The government, the Danish Liberal Party, the Danish Social Liberal Party, the Socialist People’s Party and the Conservative People’s Party decided to appoint an expert group when they reached an agreement on a green tax reform.

According to the terms of reference, all models for the tax on CO2 should aim to provide the cheapest possible solution socio-economically speaking, which at the same time supports the GDP. The expert group will also have to consider sustainable business development and Danish competitiveness, sound public finances and employment, a strong welfare state as well as the cohesiveness and balance of the Danish society.

In addition to Michael Svarer, the expert group contains the following members: Mette Termansen, professor of environmental and natural resource economics at the University of Copenhagen, Claus Thustrup Kreiner, professor of economics at University of Copenhagen, Joan Faurskov Cordtz, partner at PwC and tax law expert, Peter Birch-Sørensen, professor at the University of Copenhagen and previous chair of the Danish Council on Climate Change, and Susanne Juhl, independent consultant.

The expert group will have to submit two reports to the Danish Ministry of Taxation. The first one is to be submitted at the end of 2021, the second one in autumn 2022.

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