Denmark plans to implement a tax on greenhouse gas emissions from livestock starting in 2030, targeting methane emissions from cows, sheep, and pigs. The tax aims to reduce Danish greenhouse gas emissions by 70% from 1990 levels by 2030, reflecting international efforts to tackle methane emissions and mitigate climate change impacts.
Denmark plans to implement a tax on greenhouse gas emissions from livestock starting in 2030 to target methane emissions from cows, sheep, and pigs. The tax aims to help reduce Danish greenhouse gas emissions by 70% from 1990 levels by 2030, as part of broader climate goals. Danish livestock farmers will initially face a tax of 300 kroner ($43) per ton of carbon dioxide equivalent, rising to 750 kroner ($108) by 2035. After factoring in an income tax deduction, the actual cost to farmers will start at 120 kroner ($17.3) per ton and increase to 300 kroner by 2035.
The tax comes from concerns about methane’s significant heat-trapping ability, which is about 87 times more potent than carbon dioxide over a 20-year period. In Denmark, livestock accounts for approximately 32% of human-caused methane emissions. The majority of methane from livestock is released through digestion processes, primarily from cows.
Denmark’s parliament is expected to approve the measure, reflecting a consensus reached among the government, farmers, industry representatives, and unions. The legislation marks a first in global efforts to levy CO2 taxes on agriculture.
Meanwhile, New Zealand had a similar plan set for 2025, but it was scrapped following a change of government and criticism from farmers.
Separately, U.K. supermarket chain Morrisons has partnered with Sea Forest to reduce methane emissions from their beef cattle by using a methane-abating livestock feed called SeaFeed. This initiative aligns with Morrisons’ goal to achieve net zero agriculture emissions from directly supplied farms by 2030. The partnership is part of ongoing research to reduce methane production in cattle, potentially introducing lower-carbon beef products by 2026.
In the oil and gas sector, the Oil and Gas Climate Initiative (OGCI), representing 12 leading companies, marked its decade of efforts in reducing industry-wide emissions. Since its inception in 2014, it has cut collective methane emissions by half, decreased routine flaring by 45%, and reduced carbon intensity by 21%. OGCI has invested $65 billion in low-carbon technologies and solutions, driving industry-wide collaboration to meet decarbonization targets.
These movements reflect international efforts to tackle methane emissions from various sectors, highlighting the need for both innovative and regulatory approaches to mitigate climate change impacts.
