CEPOS responds to economists' criticism: Yes, new climate goal is expensive and inefficient

Danish think tank CEPOS is pushing back against criticism from economists regarding its analysis of the government's climate goals. In a debate piece published by Berlingske, CEPOS's analysis chief, Otto Brøns-Petersen, argues that the critique misses the mark.

CEPOS has been a vocal critic of Denmark's climate policy, asserting it is unnecessarily costly and inefficient. Brøns-Petersen points to the current government's stated goal of achieving "at least 85 percent" emissions reduction by 2035. He contrasts this with the previous government's target of 82 percent, which had allocated four billion Danish kroner for its implementation. The new government, however, has not specified any funding for its more ambitious target, despite two of its parties being part of the previous administration.

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Unfortunately, the criticism misses the mark.

Brøns-Petersen contends that the government rejected opposition parties' calls for higher climate targets unless they could secure their own financing. He implies hypocrisy in the current administration setting a higher goal without a clear financial plan. CEPOS maintains its long-standing position that Denmark's approach to climate policy incurs significant, avoidable expenses.

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CEPOS has previously and more persistently than anyone else pointed out the large unnecessary costs associated with the non-cost-effective way Denmark is pursuing climate policy.