The FARM BuzzDenmark will soon instate the world’s first carbon emissions tax on agriculture. A group of government-commissioned experts first proposed the new tax in February. The goal was to establish a legally binding deadline, 2030, for reducing greenhouse gas emissions by 70% from 1990 levels. Toward the end of June, the country’s coalition government accepted the proposed tax. People expect the tax to be approved by Denmark’s parliament later this year.
“The whole purpose of the tax is to get the sector to look for solutions to reduce emissions,” noted Chief Economist Torsten Hasforthn from Concito, a green think tank in Denmark.
The country is a major dairy and pig meat exporter, making animal agriculture Denmark’s largest source of climate harming emissions. One Danish dairy cow produces 5.6 tonnes of CO2 equivalent yearly. That is equal to over six metric tons. The new tax requires farmers to pay 300 Danish krone ($44) per tonne (1.1 tons) of CO2 emissions beginning in 2030. This requirement will increase to 750 krone ($110) in 2035. These numbers add up to 1680 krone ($245) per cow in 2030 and 4200k ($613) per cow in 2025.
Easing Denmark’s Farmers into The Carbon Emissions Tax
In the beginning, Denmark’s government will offer farmers subsidies to support their adjustment to the new tax requirements, including a 60% tax break. After this tax break is applied, the actual cost will start at 120 krone ($17) per tonne in 2030 and will increase to 750 krone ($107) per tonne by 2035. The bottom line equals 672 krone ($98) per cow beginning in 2030, then 1680 krone ($245) starting in 2035.
The coalition agreement also contains measures to invest 40 billion krone ($3.7 billion) toward reforestation and establishing wetlands and help Denmark meet its climate goals. Foreign Minister Lars Lokke Rasmussen stated, “With today’s agreement, we are investing billions in the biggest transformation of the Danish landscape in recent times. At the same time, we will be the first country in the world with a carbon tax on agriculture.” The first two years’ proceeds support an industry-green transition. The plan will be reassessed after that.
Many Farmers Unhappy with Denmark’s Agriculture Tax
Even with the proposed subsidies, many people are unhappy with the new tax. Danish farmers’ group Baeredygtigt called it a “scary experiment.” Chairman Peter Klaer stated, “We believe that the agreement is pure bureaucracy. We recognize that there is a climate problem. But we do not believe that this agreement will solve the problems because it will put a spoke in the wheel of agriculture’s green investments.”
Farmer Protests Across Europe Over Agriculture Tax
This new tax comes just months after protests by farmers across Europe. Farmers from France, Italy, Spain, Romania, Poland, Greece, Germany, Portugal, and the Netherlands blocked roads with tractors and pelted the European Parliament with eggs over many complaints, including issues with environmental regulation and excessive red tape. Many farmers expressed anger over economic, regulatory, and green policies.
The Green Deal “aims to introduce measures including a tax on carbon, pesticide bans, nitrogen emissions curbs and restrictions on water and land usage.” Farmers claim they can no longer make a living from their profession because of the rising costs of energy, fertilizer, and transport. They argue that cheap imports are unfair competition
Making Real Steps Towards Curbing Climate Change
The best option for helping the environment is cutting out the demand for animal agriculture at the start. When people eat fewer animal-based products, less animals will be born into the animal agriculture cycle, thereby reducing pollution. In an ideal world, the danger to our environment would not exist at all. We can all do our part by choosing compassionate, plant-based dishes. Every meal matters and efforts will benefit both the environment and the animals.
The FARM Buzz
