majority parties agree to tax CO₂ emissions from farms, a world first

This will be a world first. The Danish coalition government, led by social democrat Mette Frederiksen, announced, Monday, November 18, an agreement between majority parties on the introduction of a carbon tax on livestock in 2030, as part of a plan aimed at greening agriculture.

The majority parties in parliament agreed on the terms of the agreement aimed at taxing, from 2030, methane emissions – the second most present greenhouse gas in the atmosphere – caused by flatulence cattle and pigs, he reported at a press conference.

“We will be the first country in the world to introduce a carbon tax on agriculture”declared Climate Minister Lars Aagaard on the occasion of the presentation of this agreement called « tripartite verte ».

From 2030, methane emissions from livestock farming will be taxed at 300 crowns (40.20 euros) per tonne of CO₂ equivalent, reaching 750 crowns per tonne in 2035. Thanks to a 60% tax deduction, the cost for the breeder will go from 120 crowns per tonne in 2030 to 300 crowns in 2035. Several environmental associations believe that this is too low a tax to really constrain breeders.

Farmers who invest in technologies to reduce emissions will escape this. Others will be able to benefit from transition assistance, coming from a fund financed by the proceeds of the tax.

One of the main exporters of pork

This decision is part of a broader text on the greening of agriculture which should make it possible to reduce nitrogen emissions by 13,780 tonnes per year by 2027 in this Scandinavian country, a very large exporter of meat and dairy products. A first agreement in principle was concluded at the end of June between the government and representatives of breeders, industry and trade unions.

The text, unveiled today and which has the support of the government and four majority parties, must still be voted on in Parliament. In a statement, the signatories described the agreement as “biggest change in the Danish landscape in over a hundred years”.

“Danish nature will change in ways we haven't seen since the wetlands were drained in 1864”declared the minister responsible for this agreement, Jeppe Bruus. Around 10% of cultivated land will be returned to nature, notably with the planting of 250,000 hectares of forest, or a billion trees, the equivalent of “38 times around the planet”said Mr. Bruus.

According to a parliamentary report, around 60% of Denmark's land area is currently cultivated, making it, along with Bangladesh, the country with the largest share of cultivated land. Globally, Denmark is a leading exporter of pork, which accounts for almost half of the country's agricultural exports, according to the Danish Agriculture and Food Council.