Denmark will become the first country to impose carbon dioxide taxes on livestock emissions starting in 2030. As a major exporter of both pork and dairy, the country hopes to inspire others to action.
The proposed deal suggests taxing farmers at 300 Danish crowns ($43.16) per tonne of CO2 in 2030, rising to 750 crowns by 2035.
“We will take a big step closer in becoming climate neutral in 2045,” Taxation Minister Jeppe Bruus said, adding Denmark “will be the first country in the world to introduce a real CO2 tax on agriculture” and hoped other countries would follow suit.
The tax was proposed in February by government-commissioned experts and supposedly will help Denmark reach a legally binding target of cutting greenhouse gas emissions by 70 percent from 1990 levels by 2030, says Reuters.
This week, the centrist government reached an agreement.
“We will be the first country in the world to introduce a real CO2 tax on agriculture. Other countries will be inspired by this,” Taxation Minister Jeppe Bruus of the center-left Social Democrats said in a statement Tuesday.
The bill still needs parliamentary approval, but political experts expect the bill to pass.
According to the Minister for Economic Affairs, Stephanie Lose, the tax could increase the cost of minced beef by 2 crowns per kilo in 2030, which retails from around 70 crowns per kilo at Danish discount stores.
Danish farmers are concerned about the carbon emission tax, expressing worries that the climate goals could cause producers to cut jobs and production.
“The agreement brings clarity when it comes to significant parts of the farmers’ conditions,” the L&F agriculture industry group said.
New Zealand also has a similar law slated to take effect in 2025.
However, the legislation was repealed on Wednesday following strong criticism from farmers. This repeal coincided with a change in government from a center-left to a center-right bloc after the 2023 election. New Zealand announced it would exempt agriculture from its emissions trading scheme, opting to explore alternative methods for methane reduction instead.
“It doesn’t make sense to send jobs and production overseas while less carbon-efficient countries produce the food the world needs,” Agriculture Minister Todd McClay said in a statement. “That is why we are focused on finding practical tools and technology for our farmers to reduce their emissions in a way that won’t reduce production or exports.”
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