Denmark Enacts World’s First Carbon Tax On Livestock, $100 For Each Cow Farmers Own

In a world first, Denmark is set to impose a carbon tax on farmers for every head of cattle they own in a bid that is supposed to curb methane emissions and meet the country’s 2030 climate targets.

According to a press release on the Danish Ministry of Taxation (Skatteministeriet), the new “agreement shows the way to make Denmark a modern agricultural country and provides concrete answers to the climate and nature challenges of agriculture. The parties agree on a historical redevelopment of the Danish area, which gives more room for nature and better conditions for biodiversity and drinking water protection.”

The new plan called “Agreement on a green Denmark” – decided upon by the nation’s Agriculture & Food, Denmark’s Nature Conservation Association, Food Association NNF, Danish Metal, Danish Industry and KL – has levied a number of taxes on farmers and ranchers that is supposed to reign the amount of emissions their livestock produce annually.

The tax will need to be formally passed into law by the Danish Parliament later this year, where it presumably will pass.

The tax ministry’s new fines are as follows:

With the agreement, the parties agree that a CO2 tax must be introduced on emissions from livestock.

A fee of DKK 300 ($43) per ton CO2 in 2030 increasing to DKK 750 ($107) per tonnes of CO2e in 2035 with a floor deduction of 60%.

The effective tax will thus amount to DKK 120 ($17) per ton CO2 in 2030 increasing to DKK 300 ($43) per tonnes of CO2 in 2035.

In addition, just over 30 billion krones ($4,299,780,000) for the withdrawal of a total of approximately 140.00 hectares (ha) carbon-rich lowland soils including marginal areas and the establishment of 250,000 ha of forest.

In addition, a subsidy scheme of a total of just over DKK 10 billion ($1,433,260,000) is being set up. DKK until 2045 for the storage of biochar produced by pyrolysis.

CNN reports: ‘On average, Danish dairy cows, which account for much of the cattle population, emit 5.6 tonnes of CO2-equivalent per year, according to Concito, a green think tank in Denmark. Using the lower tax rate of 120 krone results in a charge of 672 krone per cow, or $96. With the tax break in place, that levy will rise to 1,680 krone per cow in 2035 ($241).’

The tax ministry also notes plans to remove ‘140,000 hectares of carbonaceous low floor land including peripheral areas.’

According to Statistics Denmark, there were 15,331 farms with livestock in 2023, nearly 50% the number of farms in 2006, when there were 29,083. There were 8,972 farms containing cattle in Denmark, and 2,131 contained pigs…