Denmark is set to become the first country in the world to introduce a CO2 tax on “emissions from livestock” following a new political agreement this week.
According to Denmark’s political leaders ‘The Green Tripartite’ agreement will deliver “the biggest change to the Danish landscape in over 100 years”.
It will mean that Danish farmers will initially have to pay a CO2 tax of 300 kroner (€40) per tonne of methane an emissions from livestock from 2030.
This will then increase to 750 kroner (over €100) by 2035.
A broad majority of the parties in the Danish parliament have now backed the new agreement and 43 billion kroner (€5.77 billion) will be allocated to finance the “reorganisation” of the Danish landscape.
Denmark
Jeppe Bruus, the minister for the Green Party in Denmark, has described The Green Tripartite’ as a “historic result” for the country.
“Danish nature will change in a way we have not seen since the wetlands were drained in 1864,” he stated.
It has been estimated that the agreement has the potential to reduce CO2 emissions in Denmark by a range of between 1.8 million and 2.6 million tonnes in 2030.
The terms of the agreement also set out that nitrogen emissions associated with agriculture must be reduced.
There will also be a subsidy introduced “for reduced fertilizer” use of 750 kroner (over €100) per tonnes of CO2 and a CO2 tax on emissions from “applied agricultural lime” of 750 kroner (over €100) is also on the cards – which will be phased in gradually.
The agreement also stipulates that subsidies will be given for the “use of feed additives” and there will also be a CO2 tax on emissions from “carbon-rich low-lying soils”.
Soils
According to further details set out in The Green Tripartite’ a new financial framework will be created so that “250,000ha of new forest can be established by 2045 through subsidies for private afforestation and state afforestation”.
It also stipulates that “140,000 hectares, which are currently cultivated on climate-damaging low-lying soils, must be converted to nature”.
According to the Ministry of Green Tripartite the agreement will “create more nature and ensure a good aquatic environment” for Denmark.
“The transformation of the Danish agricultural and food industry must take place in a way that supports an increasingly sustainable, high-tech and land-efficient agricultural production, so that Denmark also has a competitive industry with attractive business potential and jobs in the future,” it stated.