COPENHAGEN, Denmark (AP) — Denmark will become the first country in the world to impose a tax on livestock producers for greenhouse gases emitted by cattle, sheep and pigs starting in 2030. A powerful gas that contributes to global warming.
Tax Minister Jeppe Bruus said the goal was to reduce Denmark’s greenhouse gas emissions by 70% from 1990 levels by 2030.
From 2030, Danish livestock farmers will be taxed 300 kroner ($43) per ton of carbon dioxide equivalent in 2030. This tax will increase to 750 kroner ($108) by 2035. However, due to the 60% income tax deduction, the actual cost per tonne will start at 120 kroner ($17.3) and increase to 300 kroner by 2035.
Carbon dioxide generally gets more attention for its role in climate change, but methane traps about 87 times more heat over a 20-year period, according to the National Oceanic and Atmospheric Administration.
Levels of methane emissions from landfills, oil and natural gas systems, livestock, etc. have increased particularly rapidly since 2020. According to the United Nations Environment Program, about 32% of human-induced methane emissions come from livestock.
“We will take a big step towards achieving climate neutrality in 2045,” Bruus said, adding that Denmark “will be the first country in the world to introduce a real CO2 tax on agriculture.” Other countries hoped to follow suit.
New Zealand has passed similar legislation scheduled to take effect in 2025. But the bill was removed from the statute book on Wednesday following strong criticism from farmers and a change of government from the center-left ruling bloc to the centrists in the 2023 elections. – that’s right. New Zealand says it will exclude agriculture from its emissions trading scheme to explore other ways to reduce methane.
In Denmark, the deal was reached late Monday between the center-right government and representatives of farmers, industry and unions and was announced Tuesday.
Denmark’s move comes after months of protests by farmers across Europe against climate change mitigation measures and regulations. Farmers claim these measures and regulations are forcing them into bankruptcy.
The Danish Nature Conservancy, Denmark’s largest conservation and environmental group, called the tax agreement a “historic compromise.”
“We succeeded in finding a compromise on the CO2 tax that lays the foundations for a restructured food industry in 2030,” Maria Reumert Gjerding said after the talks they participated in.
A typical Danish dairy cow produces 6 metric tons (6.6 tons) of CO2 per year. Denmark, a large dairy and pork exporter, also plans to impose a tax on pigs. But cows produce much more carbon than pigs.
The tax is expected to be approved by the 179-seat Folketing parliament, but the bill is expected to pass only after a broad consensus.
According to Statistics Denmark, there were 1,484,377 cattle in the Scandinavian country as of June 30, 2022, a slight decrease compared to the previous year.
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Read more AP climate coverage at http://www.apnews.com/climate-and-environment.
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Associated Press writer Charlotte Graham-McLay in Wellington, New Zealand, contributed to this report.
