| Front page | | Contents | | Previous | | Next |

The World Summit in Johannesburg and Denmark's National Strategy for Sustainable Development

The market

Market-based instruments are a cost-effective strategy to reduce pressure on the environment. Use of flexible framework management and pricing mechanisms are important benchmarks in environmental policy.

The Johannesburg Plan highlights that the market mechanism can promote sustainable production and consumption patterns by using economic instruments to internalise the environmental costs of production and consumption

The Danish government places high priority on increasing application of market-based instruments in environmental policy. Economic growth in society should generally take place without corresponding growth in environmental impacts.

In April 2003 the Government issued a report Making Markets Work for Environmental Policies. The Report expands and develops the notions that economic measures are very suitable to making producers and consumers more environment-friendly in their actions. For example, there is conversion to more environmentally effective taxes and tradable quotas. There is particular focus on tradable quotas. The Climate Strategy is an example of how quota regulation and trading in quotas can be used in practice. Market-based instruments should be coordinated internationally as far as possible.

In the water and waste areas there is special focus on increased competition and price transparency. The Danish government has set up a work group to assess a new organisation of the waste sector, as well as a work group to examine water and wastewater services.

Future initiatives will emphasise that as far as possible prices should reflect social costs, including environmental impacts.This corresponds to the polluter pays principle.

| Front page | | Contents | | Previous | | Next | | Top |