In a groundbreaking move, the Danish government has presented a plan for the phased introduction of a CO2 tax on food production. Denmark will thereby become the first country in the world to implement a tax specifically targeting air and soil pollution caused by agriculture.
Such a step has been discussed in Denmark for many years. Danish agricultural organizations oppose excessively high levies and demand compensation. The measure is broadly supported by various ministers in the Danish cabinet and will be discussed in parliament after the summer recess.
The CO2 tax, which will be gradually introduced from 2030, aims to drastically reduce greenhouse gas emissions from the agricultural sector. The plan includes specific taxes, particularly on meat and dairy. For example, the price of minced meat and beef will rise significantly, which experts say is necessary to meet Denmark’s environmental targets.
The tripartite consultation, known as the ‘green tripartite,’ plays a crucial role in this process. This group consists of representatives from the Danish government, agricultural and nature organizations, rural municipalities, and consumer organizations. Together they have reached consensus on the CO2 tax, also taking into account the economic consequences for the agricultural sector and the wider community. The outcome of the consultation is seen as a historic moment.
In addition to the CO2 tax, Denmark is also introducing a national land fund of about one billion euros. This fund is intended to purchase low-lying agricultural areas that will be converted into new forests.
Although there is broad support for the proposed measures, critical voices have also been heard. Several environmental organizations have criticized the lack of urgency and the limited scope of the plans. For instance, some point out that too much money continues to flow to intensive livestock farming, which they argue conflicts with climate goals.
Agricultural organizations and rural municipalities are also concerned. They fear that smaller farmers will face financial difficulties and that jobs will be lost in the agricultural sector. However, the government has promised compensatory measures to mitigate the economic impact and support the transition to sustainable agriculture.
The upcoming debates in parliament will determine exactly how the plans will be shaped and which additional measures are necessary to ensure a just and effective transition to a sustainable agricultural sector.
