Denmark is set to tax farmers for emissions from their cattle and other livestock.
Dependent on approval from national parliament, which is expected to come in August, Denmark will become the first country on earth to extract a carbon tax from livestock farmers.
Beginning in 2030, farmers will be taxed 120 Danish krone, equivalent to $43 USD, per annual ton of carbon dioxide (CO2) produced. This amount will go up to DKr750 per ton of CO2 in 2035.
The tax will be subject to a 60% tax deduction.
Denmark’s government has been assessing this tax since February. An agreement was reached by seven negotiation parties Tuesday evening (June 25) including the Council of Food & Agriculture, the Danish Society for Nature Preservation, Danish Metal Workers’ Union, the farm workers’ union NNF, Local Government Denmark, and the Confederation of Danish Industry.
Officials claim this tax will reduce greenhouse gas emissions by 1.8 million tons in 2030.
In a post on X, Economy Minister Stephanie Lose called this an “agreement which will form the basis for a historic reorganization and restructuring of Denmark’s land and food production.”
Mark Howden, director of the Institute for Climate, Energy and Disaster Solutions, Australian National University and a member of the Expert Panel on Livestock Methane, was quoted in Just Food declaring victory and insisting that other countries must follow Denmark’s example.
“The world can no longer afford to ignore the third of global emissions produced by the agri-food sector,” Mr. Howden said.
Proponents claim that taxing farmers and the food system will somehow benefit and enrich both. However, details on how this would occur are vague.
