Denmark Implements Agricultural Carbon Tax Targeting Methane Emissions Starting in 2030

Denmark will become the first country to tax livestock farmers for the greenhouse gases emitted by their animals starting in 2030, targeting methane emissions from cows, sheep, and pigs. The tax aims to reduce Danish greenhouse gas emissions by 70% from 1990 levels by 2030, with an ultimate goal of becoming climate neutral by 2045. Initially, the tax will be 300 kroner ($43) per ton of CO2 equivalent, rising to 750 kroner ($108) by 2035, although a 60% income tax deduction will halve the effective cost. This legislation follows a similar attempt in New Zealand, which was shelved due to farmer opposition and a governmental shift. Methane is a potent greenhouse gas, trapping 87 times more heat than CO2 over a 20-year period, and livestock are responsible for approximately 32% of human-caused methane emissions. Danish officials hope this pioneering measure will inspire other nations to implement similar policies.