June 25, 2024 | Reuters |
Denmark will become the first country to impose a tax on livestock carbon dioxide emissions starting in 2030, aiming to meet its 2030 goal of reducing greenhouse gas emissions by 70% from 1990 levels. The new tax, agreed upon by the centrist government in a broad compromise with farmers, industry, and environmental groups, will start at 300 Danish crowns ($43.16) per ton of CO2, increasing to 750 crowns by 2035. Farmers will receive a 60% income tax deduction, reducing the effective cost to 120 crowns initially, rising to 300 crowns by 2035. The tax is expected to raise the cost of minced beef by about 2 crowns per kilo. Despite initial concerns from farmers, the compromise is seen as a way to balance climate goals with maintaining agricultural operations. The proposal is anticipated to pass parliament, following a broad-based consensus.