Taxing Livestock Emissions in Denmark
Denmark plans to tax livestock farmers for methane emissions from 2030 to reduce greenhouse gas emissions by 70% from 1990 levels by 2030. The tax will start at 300 kroner per ton of carbon dioxide equivalent in 2030 and increase to 750 kroner by 2035, but with a 60% income tax deduction, the actual cost will be lower. Denmark aims to become climate neutral by 2045 and hopes other countries will follow suit.
Key Points
- Denmark aims to reduce greenhouse gas emissions by 70% from 1990 levels by 2030
- Livestock farmers will face a punitive financial imposition for carbon dioxide emissions starting at 300 kroner per ton in 2030
- Tax will increase to 750 kroner by 2035, but with a 60% income tax deduction
- Denmark hopes to become climate neutral by 2045 and be a global leader in carbon taxation on agriculture
Pros
- Reduction of greenhouse gas emissions
- Incentivizing farmers to reduce livestock emissions
- Potential positive impact on global climate change efforts
Cons
- Financial burden on livestock farmers
- Uncertainty about the measurement process for individual animals
- Potential resistance from farmers and industry