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Billion Investment in wind turbines and utilization of biomass is useless if the goal is to reduce CO2 emissions. At worst, it can paradoxically harm the climate, says the Economic Council - sages - in an analysis in Berlingske Politiko that looked at the green energy investiment in relation to the EU quota system for CO2 emissions.
- The Government Bill sets national targets for greenhouse gas emissions in Denmark but makes no distinction between the quota sector and non-ETS sector. It makes no sense, says the analysis from the sage Hans Jørgen Whitta-Jacobsen and others.
The quota system as it operates today, means that reductions in the EU are going to happen in the countries where it is cheapest to reduce CO2 emissions - and it is not necessarily in Denmark.
- It is rather the case that CO2 reductions are relatively expensive in Denmark because Denmark, among other things has very high energy taxes and a relatively efficient use of energy, and therefore has garnered some of the "low hanging fruit", says the analysis. Denmark has not yet chosen to implement national measures, which would mean an investing of 6.7 billion.
- This investment will not have any impact on CO2 emissions. Electricity producers are part of the EU's quota system, and if Denmark produces more power based on fossil energy, it will mean that the Danish power would demand fewer allowances. This lowers the price of allowances and makes it cheaper the German industry, for example, to buy allowances. The total number of shares and the total emission of CO2 is unchanged, writes sages. This way, the effect is that Denmark will help reduce costs while greenhouse gas emission levels in the EU are unaffected.
- In fact, the layout of the wind turbines will be decidedly harmful to the environment because of the way investments are to be financed. Investments in wind turbines are partially funded by electricity consumers through higher prices. The effect of wind energy is that electricity price rises. It makes electricity less competitive against oil and gas. This can result in direct adverse climate effects, write the sages.
Think Tank Concito responded to the analysis by saying the quota system is not the only strategy for reducing greenhouse gases.