Denmark is set to become the first country in the world to impose a CO2 tax on agriculture. Starting next year, farmers from Denmark will be charged €100 annually per cow as part of a new emissions tax aimed at reducing greenhouse gas emissions.
The agreement, reached on Monday night between the government, farmers, and unions, will impose a tax of 300 Danish kroner (40 euros) per ton of CO2 starting in 2030. This tax will increase to 750 kroner per ton by 2035. Initially, the government has announced a 60% tax reduction. This means farmers will pay 120 kroner (16 euros) per ton of livestock emissions per year. This new taxation starts in 2030, rising to 300 kroner (40 euros) by 2035.
Impact on Farmers
Concito is a Danish ecological think tank. They measured that Danish dairy cows (a significant portion of the country’s cattle population) emit an average of 5.6 tons of CO2 per year. With the tax reduction, the annual tax per cow will be 672 kroner (100 euros). Without the reduction, this tax will rise to 1,680 kroner per cow by 2035 (225 euros).
Tax Minister Jeppe Bruus stated that the plan aims to reduce greenhouse gas emissions in Denmark by 70% by 2030. “We will take a big step towards climate neutrality by 2045,” Bruus said, adding that Denmark “will be the first country in the world to introduce a real CO2 tax on agriculture.” He also expressed hope that other countries would follow Denmark’s example.
This measure comes just months after farmers protested across Europe. That led to blocked roads with tractors and even thrown eggs at the European Parliament, over a long list of grievances. The particularly strict environmental regulations and excessive bureaucracy were their main complaints.
New Zealand had passed a similar law set to take effect in 2025. However, the legislation was scrapped after strong opposition from farmers. Also, due to a change in government following the 2023 elections, which brought conservative Christopher Luxon to power.
Cattle Population in Denmark
According to Statistics Denmark, as of June 30, 2022, there were 1,484,377 cows in the Scandinavian country.
Denmark’s pioneering CO2 tax on livestock emissions marks a significant step towards addressing climate change through agricultural reform. As the country moves forward with its ambitious climate goals, the world will be watching to see if other nations adopt similar measures.
