Denmark plans to impose a "greenhouse gas emission tax" on cows' burps and farts. Historic | Danish government | Greenhouse gas

On June 25th local time, the Danish government announced that it had signed a "historic agreement" with representatives from agriculture and other fields, involving the imposition of a "greenhouse gas emissions tax" on livestock farmers to promote Denmark's response to climate change.

If the relevant plans go smoothly, Denmark will become the first country in the world to impose a "greenhouse gas emissions tax" on livestock farmers.

According to this "historic agreement", Denmark plans to impose a "greenhouse gas emissions tax" on farmers raising livestock such as cattle, sheep and pigs from 2030, hereinafter referred to as "emissions tax".

When talking about greenhouse gases, people often think of carbon dioxide. In fact, methane produced during livestock breeding is also a greenhouse gas. This methane is mainly produced during the digestion process of livestock. At the same time, the production, transportation and use of fertilizers will also lead to the emission of greenhouse gases such as nitrous oxide and methane.

According to the Danish government's plan, starting from 2030, greenhouse gases produced by local farmers in the process of raising livestock will be taxed in units of carbon dioxide equivalent, with the price of 300 kroner per ton of carbon dioxide equivalent. By 2035, this figure will rise to 750 kroner.

However, such a big move will be implemented in a gradual manner, and the Danish government is expected to implement a 60% reduction in the first two years.

This means that from 2030, Danish livestock farmers will actually be charged an "emissions tax" of 120 kroner per ton of carbon dioxide equivalent. By 2035, this figure will rise to 300 kroner.

According to data from the Danish think tank Concito, a Danish dairy cow emits an average of 5.6 tons of greenhouse gases equivalent to carbon dioxide per year. Calculated at a 40% discount, livestock farmers need to pay 672 kronor in "emissions tax" for each dairy cow raised each year.

"The tax is intended to get livestock farmers to find solutions to reduce emissions," said Concito chief economist Torsten Haffuss, who said farmers could, for example, change the feed they use.

The Danish government initially plans to use the money raised from taxation to support the green transformation of agriculture and then make an assessment.

In addition to taxation, this "historic agreement" also involves an investment of 40 billion kronor in afforestation to help restore degraded ecosystems.

Danish Foreign Minister Anders Lok-Lok Rasmussen said this was Denmark's "largest transformation in recent years."

The Danish government's move against agriculture and animal husbandry is closely related to the country's national conditions.

Denmark, a Nordic country, has highly developed agriculture and animal husbandry, with total output accounting for about 3.4% of GDP. The cultivated land area is about 28,000 square kilometers, there are about 42,000 farms, and the exports of pork, cheese and butter are among the highest in the world.

This has also led to agricultural production becoming the largest source of greenhouse gas emissions in Denmark. A consulting group commissioned by the Danish government said that if no intervention is made, agricultural greenhouse gas emissions will account for 46% of total emissions by 2030.

"This situation cannot continue, agriculture must contribute and be part of a green future," said Lars Agard, Denmark's minister responsible for climate change.

To this end, the Danish government has continued negotiations with local institutions in the fields of agriculture, food, and environmental protection since the beginning of this year, until the results were achieved this week.

According to the plan, in the first year of imposing the "emission tax", that is, in 2030, Denmark is expected to reduce greenhouse gas emissions by 1.8 million tons.

The goal is to reduce Denmark's greenhouse gas emissions by 70 percent by 2030 compared to 1990 levels, said Danish Tax Minister Jeppe Bruss. "By 2045, we will have taken a big step towards becoming 'climate neutral'."

At present, this "historic agreement" has laid the foundation for Denmark to levy an "emission tax" starting from 2030. Next, the plan needs to be approved by the Danish Parliament.

If the plan is successfully implemented, Denmark's agriculture and animal husbandry may undergo major changes from 2030.

"We are writing a new chapter in Danish agricultural history," said Agriculture Minister Jakob Jensen.

However, there have been mixed responses to the Danish government's ambitions.

On the one hand, there is a view that this initiative should be promoted across Europe and even more widely.

Christian Hunderboer, CEO of DLG, a large European agricultural cooperative, believes that "embedding" this tax plan in EU legislation is "essential for competitiveness." He said that combating climate change and promoting agricultural development would hardly benefit from Denmark's unilateral actions.

Danish Prime Minister Frederiksen also hopes that the "Danish plan" will pave the way for similar initiatives in the region and globally.

It is reported that the European Commission is also studying how to establish a trading system involving agricultural production emissions within the EU, considering options including requiring farmers and landowners to pay directly for greenhouse gas emissions.

But this move faces considerable resistance. This year, farmers' groups in France, Germany, Italy, Poland and other European countries have launched a series of protests, demanding that the EU and their governments improve the agricultural product market environment and provide more support to agricultural operators.

In fact, there are also criticisms about the imposition of "emission tax" in Denmark.

Maria Roemert Gerding, president of the Danish Society for Nature Conservation, called the "historic agreement" a "historic compromise," while acknowledging that "there are major differences."

A Danish farmers' organization that did not participate in the negotiations said the tax plan was "out of touch" and would not effectively address climate change.

Peter Thunberg, chief executive of Arla Foods, a major European dairy company based in Denmark, said the levy was "positive" but farmers who were "genuinely doing everything they can to reduce emissions" should not be taxed.

In fact, Denmark is not the first country to intend to impose an "emissions tax" on farmers. Previously, New Zealand also planned to take similar measures from 2025. However, due to protests by local farmers and the change of government in New Zealand at the end of last year, the relevant plan has been stopped. At present, it seems that New Zealand will explore other ways to reduce methane emissions.