June 26, 2024 | FeedNavigator |
Denmark is set to implement the world's first carbon tax on agriculture, following an agreement by seven negotiating parties, including government bodies, farmer organizations, trade unions, and environmental groups. Starting in 2030, farmers will face a CO2 equivalent tax of 120 Danish krone (16€) per ton, increasing to 300 krones (40€) in 2035.
The tax aims to cut 1.8 million tons of CO2 emissions by its first year, helping Denmark achieve its target of reducing total emissions by 70% by 2030. Key aspects of the agreement include:
- Tax Structure: Initial tax of DKK 120 per ton, rising to DKK 300 by 2035.
- Emission Targets: Reduction of up to 2.6 million tons of CO2e.
- Industry Support: Tax revenues will fund a transition support fund and support green initiatives like forest creation and biochar production.
- Additional Measures: Increased fees for slaughterhouses, labor upskilling, and efforts to meet EU water directive goals.
Environmental leaders and experts have praised the agreement as groundbreaking, highlighting its potential to transform both the agricultural sector and environmental policy globally. Denmark's Finance Minister Nicolai Wammen called the move "historic," marking a significant shift towards a sustainable agricultural future.