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The first carbon tax for agricultural operations is introduced in Europe.

July 8, 2024

Denmark will be the first country in the world to introduce carbon taxes on livestock emissions from 2030.

The Danish government decided this week to introduce a carbon tax on livestock to improve the country's natural landscape, drinking water and climate. the country.

In August, the Danish Parliament is expected to approve the tax.

Danish farmers taxed based on their CO2 equivalent production

In 2030, farmers will pay a tax of 300 Danish crowns per tonne of CO2 equivalent. In 2035, the fee will increase to 750 Danish crowns (40.13 euros) per tonne of CO2e.

Farmers will benefit from a 60% deduction on their income taxes. This means they will pay 120 Danish crowns for each tonne of CO2 equivalent by 2030 and 300 Danish crowns in 2035.

Nicolai Wammem, Denmark's Finance Minister, welcomed the news and called the day a "truly historic" event for Denmark. We are investing in our future agricultural sector. This is a shared transition, with common goals and ambitions. It charts the path of what Denmark will be in 5, 10 and 20 years.

We know that a CO2 tax aligned across all sectors will result in the lowest total societal cost. “What we have done, from the industrial to the agricultural sector, shows that an ambitious green transformation is possible. »

The government is investing more in protecting trees and forests.

The government also plans to invest more than 30 million Danish kroner in removing 140 hectares (approximately) of carbonaceous lowland soils and planting 240,000 hectares (240,000 acres). ) of forest.

The storage of Biochar from pyrolysis (heating of organic materials, such as wood) without oxygen is subsidized.

In the coming years and decades, the government predicts that the agreement will lead to “major” changes in Danish industry and in general.

Finance Minister Jeppe Brüus said: “This agreement will help us achieve our climate goals in 2030 and bring us closer to climate neutrality by 2045.”

Denmark could be one of the first countries to introduce a carbon tax.

Denmark will soon be the first country to implement a tax on carbon emissions in agriculture. But only after New Zealand abandoned plans to implement a tax similar to New Zealand'sEarlier this month,

The jury is still out on whether or not other countries will adopt the same policy. Bruus said it could spur action. “We will be the first in the world to introduce a CO2e tax on agriculture. » This will inspire other countries. »

It is possible that predicted levels of greenhouse gas emissions could lead to the introduction of agricultural taxes in other countries. Denmark is expected to reduce its greenhouse gas emissions by up to 2.6 million tonnes by 2030.

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