Denmark to Tax Livestock Farmers for Greenhouse Gas Emissions from 2030: Aiming for Climate Neutrality by 2045

Denmark to Tax Livestock Farmers for Greenhouse Gas Emissions

In a groundbreaking move, Denmark has announced plans to tax livestock farmers for the greenhouse gases emitted by their cows, sheep, and pigs starting in 2030. This makes Denmark the first country to implement such a tax, targeting methane emissions which are a major contributor to global warming.

The goal is to reduce Danish greenhouse gas emissions by 70% from 1990 levels by 2030, according to Taxation Minister Jeppe Bruus. The tax will start at 300 kroner ($43) per ton of carbon dioxide equivalent in 2030 and increase to 750 kroner ($108) by 2035. However, with an income tax deduction of 60%, the actual cost per ton will be 120 kroner ($17.3) initially, increasing to 300 kroner by 2035.

Although carbon dioxide often receives more attention, methane is actually much more potent in trapping heat. Livestock farming accounts for about 32% of human-caused methane emissions, with cows being the biggest contributors due to the way they digest their food.

Denmark’s move has been hailed as a significant step towards achieving climate neutrality by 2045. The tax agreement, reached between the government and various stakeholders, is seen as a historic compromise that could reshape the food industry in the country.

This decision comes amidst growing concerns about climate change and the impact of agriculture on the environment. With methane emissions on the rise, countries like Denmark are taking proactive steps to address the issue and lead the way in combating climate change.

The tax legislation is expected to be approved by the Danish parliament, given the broad-based consensus and support for the move. This tax on livestock emissions is seen as a crucial measure in the fight against climate change and a model for other countries to follow.