Denmark proposes a tax of around 164 $ per tonne of carbon dioxide. According to the legislators, the tax could cut up to 3,7 million tonnes per year by 2030. The tax would be imposed on heavy industries and the energy sector. For smaller companies the tax would be around 108 $.

"This initiative is meant to ensure that the companies that impact the climate pay for their own emissions," Tax Minister Jeppe Bruus said, according to Reuters.

The government also proposed spending 7 billion crowns to help companies with the green transition, thus minimizing the risk that they move abroad to avoid the carbon tax, Bruus said.

The measure could help the nordic country to achieve its 2030 target of cutting greenhouse gas emissions by 70% from 1990 levels, meaning around 20 million tonnes of CO2 equivalent.