Denmark will impose a tax on livestock farmers for greenhouse gases emitted by their cows, sheep, and pigs starting in 2030. This initiative aims to reduce Denmark’s greenhouse gas emissions by 70% from 1990 levels by 2030. Taxation Minister Jeppe Bruus announced that farmers will be taxed 300 kroner (approximately $43) per ton of carbon dioxide equivalent in 2030, increasing to 750 kroner ($108) by 2035. Due to a 60% income tax deduction, actual costs will start at 120 kroner ($17.3) and rise to 300 kroner by 2035.

Methane, a potent greenhouse gas, traps significantly more heat than carbon dioxide. The UN Environment Program reports that livestock accounts for about 32% of human-caused methane emissions. Denmark, a substantial dairy and pork exporter, follows this step as part of efforts to become climate neutral by 2045.

This legislative move follows prolonged European protests by farmers against climate change measures impacting their livelihoods. The Danish Society for Nature Conservation has called the agreement “a historic compromise.” The tax, which needs approval from Denmark’s parliament, is expected to pass given the broad consensus.

For context, as of June 30, 2022, Denmark had 1,484,377 cows, marking a slight decrease from the previous year. New Zealand had attempted a similar law but withdrew it after facing substantial criticism and a change in government.