Making Markets Work for Environmental Policies

Foreword

A clean and healthy environment is an essential part of any modern society. That is why we want to take care of the environment and respect the carrying capacity of nature. Our goal is for Denmark to be one of the leading industrialised countries in reducing pollution.

The Danish Government has an ambitious and responsible environmental policy. We have clear goals, which we want to adhere to. At the same time, there is a need for innovation in environmental policy. There needs to be less regulatory control, and more room for free initiative. We all have a responsibility towards our surroundings.

Making markets work for environmental policies is about making better use of market forces to solve environmental problems, in order to achieve cost-effective solutions. The climate strategy is a good example. Cost-effective instruments must be central in the measures taken.

“Making markets work for environmental policies – achieving cost-effective solutions” is the beginning of a process in which major environmental issues will be evaluated in turn, with the aim of changing tack. Governance via the creation of flexible framework conditions and the price mechanism will create better conditions for enterprises and consumers to take responsibility for solving an increasing amount of tasks within the field of environmental politics. It is therefore important that the costs associated with pollution are reflected, as far as possible, in prices.

This report discusses three main elements: Economic instruments, the market for cleaner products, and technological development and innovation. The aim is for the combination of these different mechanisms to push the market in the right direction, in the most efficient and cheapest way possible.

The goal is clear: to achieve cost-effective solutions to environmental problems.