Livestock levy: Denmark agrees “historic” carbon tax on agriculture

26 Jun 2024 --- The Danish government will implement Europe’s first carbon tax on agriculture after months of negotiations with farming and agriculture organizations in a landmark agreement. 

Denmark, a major pork and dairy exporter, will charge farmers for livestock emissions. From 2030, 120 Danish krone (around €16) per ton of CO2 emissions will be charged, and this will increase to 300 Danish krone (around €40) per ton in 2035. 

The government says the agreement aims to reduce Danish emissions by 1.8 million tons of CO2 in 2030, closing “the shortfall in relation to the 2030 climate target.”

Stephanie Lose, economy minister, says: “With the Green tripartite agreement, we set a clear green direction for the future of Danish agriculture. We create a framework for a more sustainable, high-tech and efficient agricultural production, which ensures a green transition.”

“It has not been an easy task, but I am proud that we have once again shown that we in Denmark can sit down and listen to each other and together find solutions to the great challenges facing our good country,” she continues.

“I would like to thank the parties in the green tripartite for their great work, seriousness and trusting cooperation over the past many months. This has created the foundation for us to ultimately succeed in making an agreement that all parties can see themselves in.”

Locked in talks to reach a deal
The country first proposed plans for a carbon tax in February, and since then, the government and the parties in the green tripartite — Agriculture & Food, Denmark’s Nature Conservation Association, Food Federation NNF, Dansk Metal, Dansk Industri and KL — have been locked in talks to reach an agreement. 

A spokesperson for Greenpeace tells Food Ingredients First that although the new agreement is “far from perfect,” it is a “world first” CO2 emissions tax on agriculture, and its significance should be recognized.

“Amid a backdrop of nations retreating from climate pledges, this offers hope. While the carbon tax should have been both higher and implemented sooner, it marks a significant milestone,” adds the spokesperson.

Martin Damm, chairman of the National Association of Municipalities, calls the agreement ambitious and adds that municipalities were ready to take the lead.

He says: “The municipalities know the landowners and the local conditions best, and we are therefore happy that it is also the municipalities that will be responsible for the local transformation, so that we ensure that there is room for both agriculture and nature. Major changes to our country are planned, and the agreement will change the Danish areas for decades to come.”

By Sade Laja