The government of Denmark is planning to reintroduce a tax deduction for services provided by skilled workers (håndværkerfradraget) as part of its new budget proposal, but this solution is met with skepticism from experts. According to labor market researcher Bent Greve from Roskilde University, the tax deduction could be a popular but not necessarily effective method for climate-proofing Denmark.

The proposal from the Liberal Party (Venstre) to target the tax deduction towards climate-proofing initiatives is a central aspect of their policy. However, Greve argues that there are significant risks associated with this approach. He mentions, for example, that many of the tasks that the deduction would cover would likely be carried out regardless of the tax incentive. Additionally, he points out that Denmark is currently experiencing record-high employment levels, which suggests that such an incentive may not be as necessary.

Another aspect is that the scheme mainly benefits homeowners, which, according to Greve, can be viewed as a form of tax relief for individuals who already possess financial resources. He believes that homeowners receive a financial incentive to undertake climate-proofing projects, but this could be seen as an imbalance in the socio-economic distribution of resources.

Greve acknowledges that the tax deduction has previously enjoyed substantial popular support and has motivated some to undertake necessary tasks in their homes. However, he suggests that there could be more effective means to achieve climate-proofing goals. He proposes alternative methods, such as supporting climate-proofing projects for larger groups of homes at the same time, which could have a more significant impact at the societal level.

The specific design of the new tax deduction will depend on ongoing political negotiations among the budget parties. Until then, the question remains open as to whether this reintroduction will meet the desired objectives for effective climate-proofing.