The government of Denmark has agreed a suite of environmental measures for its agriculture and food producing sector which will see tax levied on livestock for carbon emissions.
The measures will see a “carbon dioxide equivalent” (CO2eq) tax on emissions from livestock. A tax of DKK 300 (Danish krone – €40.22 at the current exchange rate) will apply per tonne of CO2eq from 2030.
This tax will increase to DKK 750 (€100.55) per tonne in 2035. However, for both figures, a deduction will apply, meaning that the actual tax to be paid will be lower than these figures (approximately €16 in 2030 and €40 in 2035, on the current exchange rate).
According to the agreed measures, the proceeds of the tax in its first two years will be reinvested back into agriculture to “support the industry’s green transition”. The question of how the proceeds are used after that will be revisited in 2032.
In addition to that, the agreement has also committed DKK 30 billion (just over €4 billion) to set aside 140,000ha of lowland soil, including marginal areas, and for the restoration of 250,000ha of forestry.
According to the parties to the agreement – which includes a farmer organisation – these measures will reduce the country’s emissions by 1.8 billion tonnes of CO2eq by 2030, and would close the gap to meeting its 2030 climate targets.
The government in Denmark has undertaken to implement these measures, and they will be discussed in the country’s parliament, the Folketing.
The agreement states that its aim to for Denmark to be “an international role model” for land management.
Commenting on the new measures, Denmark’s Minister for Food, Agriculture and Fisheries Jacob Jensen said: “Today we are writing a new chapter in Danish agricultural history.
“Denmark is a proud food-producing nation, where we have some of the the world’s most skilled farmers, whom we now ensure a stable framework for continuing to produce world-class food for many years into the future.”
“Because the world lacks food and climate solutions, and Danish agriculture can contribute to both of these things, that can be helped along the way by this agreement,” Minister Jensen added.
The agreement also outlines that Denmark will see a “paradigm shift” in nitrogen efforts, where land conversion will be the “main engine” for achieving the goals of the EU Water Framework Directive.
In April, the country announced that it will not seek a further extension from the European Commission for its nitrates derogation.
Some farmers in Denmark have availed of a nitrates derogation for the last 22 years. However, the country’s derogation is set to come to an end this summer.
Currently, the only EU member states to have a nitrates derogation are Denmark, Ireland, the Netherlands and the Flanders region of Belgium.
A previous government of the Netherlands had indicated that it would phase out the derogation. However, the potential new governing coalition has since said that it will seek to retain the derogation.