Denmark to Implement World’s First Carbon Tax on Gassy Cows and Pigs

Denmark to Implement World’s First Carbon Tax on Gassy Cows and Pigs

**Denmark to Implement World’s First Carbon Tax on Gassy Cows and Pigs**

COPENHAGEN, Denmark — In a groundbreaking move to combat climate change, Denmark will become the first country to impose a carbon tax on livestock farmers for the greenhouse gases emitted by their cows, sheep, and pigs. This initiative, set to begin in 2030, targets methane emissions, a potent greenhouse gas significantly contributing to global warming.

**Ambitious Climate Goals**

The Danish government aims to reduce its greenhouse gas emissions by 70% from 1990 levels by 2030. Taxation Minister Jeppe Bruus announced that starting in 2030, livestock farmers will be taxed 300 kroner ($43) per ton of carbon dioxide equivalent. This tax will increase to 750 kroner ($108) by 2035. However, due to an income tax deduction of 60%, the actual cost per ton will start at 120 kroner ($17.3) and rise to 300 kroner by 2035.

**Methane: A Potent Greenhouse Gas**

While carbon dioxide often receives more attention for its role in climate change, methane is significantly more effective at trapping heat. According to the U.S. National Oceanic and Atmospheric Administration, methane traps about 87 times more heat than carbon dioxide over a 20-year timescale. Methane levels have surged since 2020, with livestock accounting for approximately 32% of human-caused methane emissions, according to the U.N. Environment Program.

**Global Leadership and Inspiration**

“We will take a big step closer to becoming climate neutral by 2045,” Bruus stated, emphasizing that Denmark will be the first country to introduce a real CO2 tax on agriculture. He expressed hope that other nations would follow Denmark’s lead.

New Zealand had passed a similar law set to take effect in 2025. However, the legislation was repealed following significant criticism from farmers and a shift in government from a center-left to a center-right ruling bloc in the 2023 election. New Zealand has since decided to exclude agriculture from its emissions trading scheme, opting to explore alternative methods to reduce methane emissions.

**Sources of Methane Emissions**

Approximately 90% of methane emissions from livestock result from the digestive process, specifically through fermentation, and are released as burps. Cows are the primary contributors to this belched methane. The remaining 10% of livestock methane emissions come from manure ponds on both pig and cattle operations.

**A Historic Compromise**

The agreement in Denmark was reached late Monday between the center-right government and representatives of farmers, the industry, and unions, among others, and was presented on Tuesday. This move follows months of protests by farmers across Europe against climate change mitigation measures and regulations, which they argue are driving them to bankruptcy.

The Danish Society for Nature Conservation, the largest nature conservation and environmental organization in Denmark, hailed the tax agreement as “a historic compromise.” Maria Reumert Gjerding, the organization’s head, stated, “We have succeeded in landing a compromise on a CO2 tax, which lays the groundwork for a restructured food industry – also on the other side of 2030.”

**Impact on Livestock**

A typical Danish cow produces 6 metric tons (6.6 tons) of CO2 equivalent per year. Denmark, a significant dairy and pork exporter, will also tax pigs, although cows produce far higher emissions than pigs. The tax is expected to be approved in the 179-seat Folketing, or parliament, given the broad-based consensus.

**Current Livestock Statistics**

According to Statistic Denmark, as of June 30, 2022, there were 1,484,377 cows in the Scandinavian country, a slight decrease compared to the previous year.

Denmark’s pioneering carbon tax on livestock represents a significant step towards addressing the urgent issue of methane emissions and sets a precedent for other countries to follow in the global fight against climate change.

Source: Associated Press

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