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Nicoletta Batini, Ian W.H. Parry, and Mr. Philippe Wingender

, safer methods as well as natural climate change solutions, and nudging consumers into dietary changes that are both sustainable and healthy . Proxy emissions fees or feebates at the farm level (using farm-level data) can be levied to steer production toward notional emissions targets using calibrations based on: 80 The type of animal bred (lowering the fiscal burden on operations involving more sustainable animals like poultry, while raising fees/taxes or setting feebates at zero for operations involving cattle and pigs); The way animals are bred (lowering the

Nicoletta Batini, Ian W.H. Parry, and Mr. Philippe Wingender
Denmark has a highly ambitious goal of reducing greenhouse gas emissions 70 percent below 1990 levels by 2030. While there is general agreement that carbon pricing should be the centerpiece of Denmark’s mitigation strategy, pricing needs to be effective, address equity and leakage concerns, and be reinforced by additional measures at the sectoral level. The strategy Denmark develops can be a good prototype for others to follow. This paper discusses mechanisms to scale up domestic carbon pricing, compensate households, and possibly combine pricing with a border carbon adjustment. It also recommends the use of revenue-neutral feebate schemes to strengthen mitigation incentives, particularly for transportation and agriculture, fisheries and forestry, though these schemes could also be applied more widely.