Denmark announces world's first climate tax on animal agriculture
With animal farming accounting for 14 percent of all greenhouse gas emissions, Denmark's groundbreaking tax agreement is set to transform the food industry.
Credit: Andrew Skowron/Open Cages
Denmark will introduce a tax on animal agriculture carbon dioxide emissions from 2030, becoming the first country in the world to do so, the government has announced.
The historic move follows five months of negotiations between the government, agriculture organizations, trade unions, NGOs, and other groups. It aims to help Denmark achieve its legally required 2030 target of reducing greenhouse gas emissions by 70 percent from 1990 levels.
“We will be the first country in the world to introduce a real CO2 tax on agriculture,” said Taxation Minister Jeppe Bruus in a statement. “Other countries will be inspired by this.”
At the press conference announcing the agreement, Foreign Minister Lars Løkke Rasmussen described it as “an extremely long-term project, where we create more nature, more biodiversity, but at the same time we also have in mind that we must have a strong and viable agriculture sector.”
“What we have now done, from industry sectors to agriculture, shows us that an ambitious green transition is possible.”
Nicolai Wammen, Denmark’s finance minister, called the agreement an investment in the future of agriculture. “We know that a CO2 tax model aligned across all sectors gives us the lowest societal costs in total. What we have now done, from industry sectors to agriculture, shows us that an ambitious green transition is possible.”
Denmark’s parliament is expected to vote to approve the tax agreement, which will introduce an effective tax of 120 kroner (around $17) per metric ton of carbon dioxide equivalents from farmed animals in 2030. This will increase to 300 kroner ($43) per ton in 2035. Farmers will be entitled to an income tax deduction of 60 percent and subsidies will be made available to support adjustments in farm operations.
Prof Mark Howden, director of the Institute for Climate, Energy and Disaster Solutions at the Australian National University, said “the world can no longer afford to ignore” emissions from the agri-food sector. “The solutions needed to make a significant cut in agriculture’s climate footprint already exist – but financial incentives like the Danish tax could assist them being implemented at scale,” he said.
The agreement also includes the allocation of 40 billion kroner in state funding to restore 250,000 hectares of forest on agricultural land until 2045, the purchase of farmland to reduce nitrogen emissions from fertilizer use, and the removal of 140,000 hectares of low-lying land by 2030.
“This is a historic compromise that sets a completely new direction for land use,” said Maria Reumert Gjerding, president of the Danish Society for Nature Conservation. “Despite major disagreements, we have managed to reach a compromise on a carbon tax that paves the way for a transformed food industry – also beyond 2030.”
Credit: Aitor Garmendia/Tras los Muros
Animal Agriculture: Choking the Earth
Raising livestock for meat, eggs, and milk generates 14 percent of all greenhouse gas emissions - the second highest source of emissions and greater than all transportation combined. It also uses about 70 percent of agricultural land and is one of the leading causes of deforestation, biodiversity loss, and water pollution.
In the past six decades, global meat production has more than tripled, with 70 billion land animals slaughtered annually for human consumption. And these numbers are predicted to continue to increase dramatically. Estimates indicate that by 2050, annual meat production could range between 460 to 570 billion kilograms.
Even just maintaining current emission levels will result in the food sector alone surpassing the 1.5°C global warming threshold, whereas, reducing meat consumption can significantly push the world closer to meeting our emissions target.
In the US, this reduction would translate to the average person consuming approximately 70 percent fewer animal products each day, with the greatest reductions coming from red meat and chicken, according to the EAT-Lancet Commission.
Studies show that plant-based diets can reduce our carbon footprint by 75 percent. Species Unite’s 30-Day Plant-Powered Challenge can help you make the first step to eating plant-based. Sign up here for 30 days of free recipes, advice, support, and guidance sent straight to your inbox.
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