Unique in the world

Denmark wants climate tax for meat and milk

Meat and milk producers in Denmark are to pay an extra climate tax in future.(Bild: APA/dpa-Zentralbild/Jan Woitas)

Denmark wants to be the first country in the world to introduce a climate tax for pig and dairy farms. "We are encouraging other countries to do so," said Tax Minister Jeppe Bruus on Tuesday.

A corresponding tax on the industry's greenhouse gas emissions had been recommended by a commission of experts. Denmark, a major exporter of meat and dairy products, also wants to achieve its goal of reducing emissions by 70 percent by 2030 compared to 1990.

35 percent of emissions from agriculture
Agriculture in Denmark is responsible for 35 percent of the country's emissions. New Zealand, which also has a large agricultural sector, had dropped such a plan after fierce opposition from its farmers.

The plan still has to go through the Danish parliament. It is considered to have a good chance, as there is great support for greenhouse gas regulations in the agricultural sector, even from the industry itself. In particular, methane emissions are generated in meat and milk production. Methane is far more harmful to the climate than CO2 and is converted into so-called CO2 equivalents.

40 euros per ton of CO2
The plan is for farmers to pay the equivalent of around 40 euros per tonne of CO2 in 2030, rising to around 100 in 2035. In return, farmers are to receive income tax relief, so that the effective burden will be between around 15 and 40 euros per tonne of CO2.