Earlier this year, an agreement was already reached between agricultural organizations, environmental groups, businesses, and local authorities to enable an agricultural transition. That agreement laid the foundation for the current political consensus, with support expressed from both center-right and liberal government factions, as well as parts of the opposition.
Denmark will also drastically reduce nitrogen emissions. For this Danish 'agriculture agreement', Copenhagen has set aside more than six billion euros.
Climate Minister Jeppe Buus has presented the financing plan, which opts for the most ambitious option to drastically lower CO2 emissions. From 2030, a CO2 tax will be introduced. Initially, the CO2 tax will be 16 euros per ton of emitted CO2. From 2035, the tax will rise to 40 euros. However, there will be a basic deduction for agriculture, which will affect the effective tax rates.
The plan includes measures that will lead to a considerable reduction of the agricultural sector. In return, Danish farmers will receive compensation for damages incurred due to these changes. This ensures they are financially supported in transitioning to more sustainable practices or in fully ceasing their operations.
The involved agricultural organizations and cooperatives acknowledge the challenges posed by this agreement but also see opportunities. The introduction of new, sustainable practices is expected not only to benefit the climate but also to contribute to the protection of drinking water and the improvement of nature.
Environmental groups have responded positively to the agreement, especially due to the ambition to revise land use and prioritize forest planting and nature restoration. This contributes not only to CO2 reduction but also promotes biodiversity and the preservation of vital ecosystems.
Although most parties support the agreement, there is also criticism. Some left-wing factions, including the Enhedslisten, have expressed reservations and even left the negotiation process because they believe the agreements do not go far enough to guarantee animal rights and the social impact on small farmers. The Animal Protection organization also believes much more should be done for animal welfare.
Nevertheless, the agreement is seen as a milestone in Danish climate policy. The choice for the most far-reaching measures underscores, according to many involved, the government’s determination to take concrete steps towards climate neutrality. The compensation for farmers makes it possible to carry out the transition in a socially just manner, it is emphasized, ensuring that farmers receive the necessary support during this transition phase.