Denmark has announced plans to tax livestock farmers for the greenhouse gases emitted by their animals, becoming the first country in the world to introduce such a measure.
The aim is to reduce Danish greenhouse gas emissions by 70% from 1990 levels by 2030, according to Taxation Minister Jeppe Bruus. Starting in 2030, Danish livestock farmers will be taxed 300 kroner ($43) per ton of carbon dioxide equivalent, with the tax set to increase to 750 kroner ($108) by 2035. Due to a 60% income tax deduction, the actual cost per ton will begin at 120 kroner ($17.3) and rise to 300 kroner by 2035.
Methane, a potent greenhouse gas emitted from livestock, landfills, and fossil fuel industries, traps about 87 times more heat than carbon dioxide on a 20-year timescale.
According to the UN Environment Program, livestock accounts for approximately 32% of human-caused methane emissions. Denmark’s initiative aims to significantly mitigate this impact as part of its broader goal to achieve climate neutrality by 2045.
Taxation Minister Bruus emphasized that Denmark will be the first country to introduce a CO2 tax on agriculture, setting a precedent that he hopes other nations will follow. The decision comes after New Zealand, which had planned to implement a similar law in 2025, withdrew the legislation due to criticism from farmers and a change in government.
The Danish agreement, reached between the center-right government and representatives from various sectors including farmers, industry, and unions, was presented on Tuesday.
Despite widespread protests from farmers across Europe against climate regulations, the Danish Society for Nature Conservation hailed the agreement as a historic compromise, laying the groundwork for a restructured food industry beyond 2030.
A typical Danish cow produces six metric tons of CO2 equivalent per year. While cows are the primary focus due to their higher emissions, pigs will also be taxed. Denmark, a major dairy and pork exporter, had about 1.48 million cows as of June 30, 2022, a slight decrease from the previous year.
The tax proposal is expected to pass in the Danish parliament, the Folketing, given the broad-based consensus supporting it.
