Denmark to Introduce Agricultural Emissions Tax Targeting Livestock to Reduce Greenhouse Gas Emissions
Denmark will lead global efforts by imposing a tax on agricultural emissions from cows, sheep, and pigs starting in 2030, aimed at cutting Danish emissions by 70% from 1990 levels by 2030. The tax on livestock will target methane emissions, with plans to become climate neutral by 2045.
Denmark will become the first country in the world to impose a tax on agricultural emissions, targeting cows, sheep, and pigs from 2030. This tax aims to reduce greenhouse gas emissions, with the goal of cutting Danish emissions by 70% from 1990 levels by 2030. Danish livestock farmers will initially face a tax of 300 kroner ($43) per ton of carbon dioxide equivalent, which will rise to 750 kroner ($108) by 2035. However, due to a 60% income tax deduction, the effective cost will start at 120 kroner ($17) and increase to 300 kroner ($43).
Denmark’s new measure addresses methane, a potent greenhouse gas that traps significantly more heat than carbon dioxide. Methane emissions have risen swiftly in recent years, with livestock accounting for around 32% of human-caused methane emissions globally. By implementing this tax, the Danish government declares its commitment to becoming climate neutral by 2045.
The agreement between the center-right government, farmers, industry representatives, and unions came after extended discussions and was presented on Tuesday. Despite farmer protests across Europe against similar climate initiatives, Denmark achieved what the Danish Society for Nature Conservation described as a “historic compromise.”
New Zealand had previously attempted a similar tax, set to take effect in 2025, but the legislation was repealed following criticism and a governmental shift. Denmark’s tax is expected to be approved by the 179-seat Folketing, with the country planning to use initial tax proceeds to support the agricultural sector’s green transition.
