Denmark Takes a Step Towards Carbon Neutrality with World's First Livestock Carbon Tax

Denmark is set to introduce a groundbreaking carbon tax on livestock emissions, a move aimed at reducing the country's carbon footprint and achieving its goal of carbon neutrality by 2045. The tax, which will come into effect from 2030, will impose a rate of 300 kroner ($43) per tonne of CO2 equivalent on methane emissions from cattle and pig flatulence.

The tax rate will increase to 750 kroner in 2035, as agreed upon by the government, opposition parties, and representatives of livestock farmers, industry, and trade unions. The proposal still needs to be approved by parliament, which will review it after the summer.

While the carbon tax is a significant step towards reducing Denmark's carbon emissions, some critics argue that it does not go far enough. Christian Fromberg, a campaign leader at Greenpeace Nordic, welcomed the move but noted that it should have been implemented sooner and at a higher rate.

Others, such as the Danish Association for Sustainable Agriculture, have expressed concerns about the impact of the tax on the agricultural industry. The association has described the agreement as "useless" and "a sad day for agriculture", citing the potential for job losses and the threat to food security.

To mitigate the impact on farmers, the plan proposes a 60% tax deduction, which is expected to reduce the true cost to farmers to 120 kroner per tonne from 2030, rising to 300 kroner in 2035. However, projections by the economy ministry estimate that up to 2,000 jobs could be lost in the sector by 2035 as a result of the agreement.

The revenue generated by the tax will be reinvested in the ecological transition of the agricultural industry, which is expected to increase carbon storage in the soil and reduce greenhouse gas emissions. Denmark's agricultural sector is a significant contributor to the country's economy, with over 60% of the country's surface area devoted to farming.

The introduction of the livestock carbon tax is seen as a significant step towards Denmark's goal of carbon neutrality, but some critics argue that it does not go far enough to address the country's environmental challenges.