Copenhagen (Agencies): The Danish government is poised to make history by introducing a tax on greenhouse gas emissions from livestock. Taxation Minister Jeppe Bruus recently announced plans to levy charges on cow, pig, and sheep emissions, starting in 2030.
This groundbreaking measure aligns with Denmark’s ambitious environmental goals: reducing emissions by 70% from 1990 levels by the end of the decade and achieving carbon neutrality. Minister Bruus emphasized that this move positions Denmark as “the first country in the world to introduce a real CO2 tax on agriculture.”
Under the new policy, livestock farmers will face a tax of 300 kroner ($43) per ton of carbon dioxide equivalent produced by their animals. Initially, this amount will be subject to a 60% income tax deduction.
Dairy farmers are expected to be most affected, as an average Danish cow emits approximately six metric tons (6.6 tons) of CO2 equivalent annually. In contrast, pigs and sheep contribute significantly less to greenhouse gas emissions.
Denmark, a major livestock producer with nearly 1.5 million cattle, stands to collect over $400 million annually through this carbon tax. Furthermore, the tax rate is set to increase, reaching 750 kroner per ton by 2035.
The move underscores the role of dairy farming in human-related greenhouse gas production. According to estimates from the UN Environment Program, livestock accounts for approximately 32% of methane emissions caused by human activity.
Denmark’s innovative approach to taxing livestock emissions reflects its commitment to environmental sustainability. By pioneering this measure, Denmark sets an example for other nations in the fight against climate change.