The Climate Act sets a legally binding target to reduce Denmark’s greenhouse gas emissions by 70% by 2030 compared to the 1990 baseline and a long-term target to reach climate neutrality by 2050. This is one of the most ambitious climate targets in the world. 

One of the central elements is the yearly Climate Program, where the Minister for Climate, Energy and Utilities must provide an assessment of whether it appears probable that the national climate targets will be reached.

The Climate Act mandates that new national climate targets are set every five years, with a 10-year perspective. This means that a new legally binding climate target for 2035 must be set in 2025. This new target must be no less ambitious than the most recently set target, in accordance with the “no backsliding” principle of the Paris Agreement.

The Climate Act emphasizes that climate challenges are global and that Danish climate solutions must inspire imitation and be implemented in a manner that does not simply move Denmark’s greenhouse gas emissions and jobs abroad. Therefore, the Danish climate effort must take account of the long-term green transition, cost-effectiveness, sustainable business development, Danish competitiveness, sound public finances, employment and the welfare state's cohesion and social balance.