Denmark has been a frontrunner in cutting its greenhouse gas emissions through a rapid shift to renewable energy and has set an ambitious legal commitment to reduce emissions by 70% by 2030 and reach carbon neutrality by 2050. Achieving these targets would contribute to global efforts to control climate change, but the transition will have large macroeconomic consequences and entail significant financial risk. This makes it crucial to adopt a cost-effective, inclusive and comprehensive strategy to cut emissions.