Last week, the Denmark government released a new energy proposal that details plans for natural gas, renewables, and a carbon tax. The proposal calls for a temporary increase in natural gas production to reduce the country’s reliance on Russian energy. The proposal also aims to output more natural gas to assist other countries in dropping Russian gas. The government noted production from gas fields in the North Sea could increase by 25% in the short term. Further, upgrades to Tyra, the country’s biggest field in the North Sea, could make Denmark self-sufficient by next year (Bloomberg). 

The proposal also calls for a quadrupling of solar and onshore wind production by 2030, and an increase in offshore wind by one to four gigawatts. The government also plans to give out subsidies to help households upgrade heating systems by 2030 (Reuters). 

Further, to help Denmark reach its goal of cutting greenhouse gas emissions by 70% by 2030, the country is proposing a uniform carbon tax on companies in heavy industries and the energy sector. The proposed carbon tax is 1,125 crowns (approximately $164.21) per ton of CO2 equivalent, but smaller companies outside of the European Union emissions trading system would pay 750 crowns per ton of CO2 equivalent. The government says this tax would cut carbon emissions by 3.7 million tons per year by 2030. To further support the tax, the government proposed putting 7 billion crowns toward assisting companies with the green transition (Reuters).