Denmark is set to become the world’s first country to place a levy on greenhouse gasses produced by livestock
Denmark is set to impose a new tax on farmers over greenhouse gases produced by their livestock, Taxation Minister Jeppe Bruus has announced. The toll on cow, pig, and sheep emissions will be implemented starting in 2030, according to the minister.
The new tax is expected to greatly contribute to the country’s goal of reducing emissions by 70% from 1990 levels by the end of the decade, as well as ultimately attaining carbon neutrality, Bruus explained.
“We will take a big step closer in becoming climate neutral in 2045,” the minister stated, praising the measure as a way for Denmark to become “the first country in the world to introduce a real CO2 tax on agriculture.”
Livestock farmers will be taxed 300 kroner ($43) per ton of carbon dioxide equivalent produced by their animals. However, this will initially be subject to an income tax deduction of 60%.
The measure is expected to hit dairy farmers the most, given that an average Danish cow produces around six metric tons (6.6 tons) of CO2 equivalent each year, with pigs and sheep emitting significantly less gas.
The country is a major livestock producer, with its current cattle population at nearly 1.5 million, according to Statistic Denmark. That would net more than $400 million a year in carbon taxes.
The new tax is set to rise even higher, reaching a target of 750 kroner per ton by 2035.
Dairy farming is believed to be a major contributor to human-related greenhouse gas production. According to the UN Environment Program’s estimates, livestock account for some 32% of methane emissions caused by human activity.
