July 3, 2024

Denmark progresses towards imposing CO2 tax on emissions from livestock

Denmark's government and parties in the country's green tripartite agreed on the restructuring and conversion of Danish agricultural production — with an aim to reduce the sector's greenhouse gas emissions and thus contribute to achieving Denmark's 2030 climate goals.

The development paves the way for better conditions for nature, biodiversity, the aquatic environment, and drinking water.

The parties agree that a CO2 tax must be introduced on emissions from livestock. Danish livestock farmers will have to pay kr.300 (US$43.09) per tonne of CO2 equivalent starting in 2030.

The tax will then rise to kr.750 (US$107.73) in 2035. There will be deductions of 60%; thus, the effective tax will amount to kr.120 (US$17.24) per tonne of CO2 and then kr.300 per tonne in 2035.

Overall, the efforts in the agreement are estimated to reduce Danish emissions by 1.8 million tonnes of CO2 equivalent in 2030.

- Ministry of Economy (Denmark)