Denmark initiates pioneering climate levy on meat and dairy manufacturing.
Denmark leads the charge for global climate action, implementing a tax on pig farming and dairy industries' greenhouse gas emissions. As stated by Finance Minister Jeppe Bruus, other nations will follow Denmark's example. A similar tax recommendation was put forth by an expert commission.
Denmark, a significant player in the global meat and dairy market, seeks to achieve a 70% reduction in emissions compared to 1990 levels by 2030, with Germany targeting a 65% reduction. In contrast to Germany, where CO2 taxes have been introduced across transportation, heating, energy, and industry but not agriculture (accounting for 8% of total emissions), Denmark's agricultural sector is responsible for 35% of emissions. New Zealand, with a substantial agricultural industry, aborted such a plan due to intense farmer opposition.
The policy awaits approval from the Danish parliament but is expected to pass due to strong support for greenhouse gas regulations within the agricultural sector, including within the industry itself. Methane emissions from meat and dairy production are particularly harmful, with methane being more climate-damaging than CO2 and converted into CO2 equivalents.
The plan encompasses farmers paying around 40 Euros per tonne of CO2 in 2030, increasing to approximately 100 Euros in 2035. Compensation will be provided in the form of income tax relief, resulting in farmers facing an effective burden between roughly 15 and 40 Euros per tonne of CO2.
