A majority coalition of parties in Denmark has agreed to introduce a tax on emissions of carbon dioxide and greenhouse gases, the government said late on Sunday.

Denmark has one of the most ambitious climate change targets in the world, aiming to reduce its emissions by 70% by 2030 and become completely climate neutral no later than in 2050.

As part of a broader climate deal set to reduce Denmark’s carbon emissions by 3.4 million tonnes, the government will negotiate a green tax reform later this year, which will see companies pay a levy on the amount of CO2 they emit, the government said.

In March, the Danish Council on Climate Change, a government advisory group, said Denmark should sharply increase carbon taxes to meet its climate targets.