Denmark will introduce the world’s first carbon tax on livestock, aiming to achieve carbon neutrality by 2045.
Starting in 2030, the government will tax methane emissions from cattle and pigs at 300 kroner ($43) per tonne of CO2 equivalent, increasing to 750 kroner in 2035. The agreement, finalized in June, includes the government, part of the opposition, and representatives of livestock farmers, industry, and trade unions.
Parliament still needs to approve the text, which will be examined after the summer. Christian Fromberg, a campaign leader at Greenpeace Nordic, said the text “offers hope in a situation where many countries are backpedalling on climate action.” He noted that while the carbon tax should have been higher and implemented sooner, it marks a significant milestone. Nonetheless, Fromberg criticized the “missed opportunity” to change Danish agriculture’s direction.
Danish agriculture remains highly intensive and releases a lot of nitrogen, deoxygenating water and causing marine flora and fauna to disappear.
Opposition and Economic Impact
The Danish Association for Sustainable Agriculture described the agreement as “useless,” calling it “a sad day for agriculture.” President Peter Kiaer expressed discomfort with the “uncertain experiment” that could threaten food supply security and referenced New Zealand’s abandonment of a similar proposal after farmers protested.
The plan proposes a 60% tax deduction to mitigate the impact on Danish farmers. Farmers will bear a cost of 120 kroner per tonne in 2030, rising to 300 kroner by 2035. However, due to the agreement, the economy ministry projects up to 2,000 job losses in the sector by 2035.
The government will reinvest tax revenue in the agricultural industry’s ecological transition. Over 60% of Denmark’s surface area is dedicated to agriculture. Additionally, the following 140,000 hectares will help increase carbon storage in the soil, reducing greenhouse gas concentrations.
Fromberg criticized Denmark’s “myth” of being a green frontrunner, arguing that the agreement is not historic. He claimed it continues the intensification of Danish agriculture, incentivizing Denmark to remain the most intensive meat-producing country in the world. According to the Danish Agriculture and Food Council, Denmark is a leading pork exporter, accounting for nearly half of its agricultural exports.
