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Denmark's Bold Move: World's First Farm Carbon Tax

Denmark has introduced the world's first agricultural carbon emissions tax, targeting livestock emissions starting in 2030.

World's First Agricultural Carbon Emissions Tax

  • Introduced by Denmark's coalition government
  • Targets livestock emissions starting in 2030
  • Agriculture is Denmark's biggest source of emissions
  • Aims to help the country meet its climate goals
  • Tax rates: 300 krone ($43) per tonne of CO2-equivalent in 2030, rising to 750 krone ($107) in 2035
  • 60% tax break initially, resulting in effective rates of 120 krone ($17) in 2030 and 300 krone ($43) in 2035

Impact on Danish Farmers and Livestock

  • Average Danish dairy cow emits 5.6 tonnes of CO2-equivalent per year
  • Initial tax per cow: 672 krone ($96) annually in 2030
  • Tax increases to 1,680 krone ($241) per cow by 2035
  • Dairy and pork industries are major contributors to Denmark's exports
  • Some farmers express concerns about competitiveness and bureaucracy
  • Industry leaders call for alignment with EU legislation to maintain fair competition

Environmental Goals and Industry Response

  • Government investing 40 billion krone ($3.7) in environmental measures
  • Plans include reforestation and wetland establishment
  • Global food system contributes to about one-third of greenhouse gas emissions
  • Livestock farming accounts for 12% of global emissions
  • Danish dairy industry broadly welcomes climate goals
  • Some industry leaders support the initiative but caution against taxing unavoidable emissions
  • Farmers' group Bæredygtigt Landbrug criticizes the agreement as "pure bureaucracy"
  • Concerns raised about potential negative impact on green investments in agriculture

As Denmark takes this pioneering step, the world will be watching to see how effective this policy proves in reducing agricultural emissions and whether it can serve as a model for other nations in the fight against climate change.

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