On June 24, the Danish Government passed a bill to impose a carbon tax on greenhouse gas emissions in the agricultural sector. This is the first bill in the world to impose a carbon tax in the agricultural sector. This bill was passed when the Government reached an agreement with socio-political organizations in the fields of agriculture, environment and industry after 6 months of negotiations. Next, The bill will be considered and passed by the Danish Parliament.
The carbon tax is expected to be applied from 2030. In the period 2030-2035, the carbon tax rate will be 17 USD/ton CO2e. From 2035 onwards, the tax rate will increase to 43 USD/ton CO2e.
According to Concito - Think tank in the field of green transition in Denmark, on average each cow emits 5,6 tons of CO2 equivalent annually. If a carbon tax of 17 USD/ton of CO2e is imposed, each year each cow will bear a new tax of about 95.2 USD.
There are many mixed opinions about this bill. However, the Danish Government showed determination when submitting this bill to the National Assembly. Danish Economy Minister Stephanie Lose wrote on Danish land".
Denmark is a major exporter of pigs and dairy cows in Europe. According to experts, it is expected that by 2030, the agricultural sector will account for 46% of this country's greenhouse gas emissions. Therefore, the Government of this country believes that the carbon tax will help them cut 1,8 million tons of CO2e by 2030. This is one of the actions to help Denmark reach its goal of cutting total emissions by 70%. in 2030.
*Source: Politico