Denmark plans to introduce first-ever tax on livestock emissions
Danish Minister for Green Transition, Jeppe Bruus, stated that the government in Copenhagen is investing billions of kroner in technologies that will help farmers reduce their emissions, which will in turn decrease the amount they have to pay. Solutions could include feed additives for animals and alternatives to pesticides.
"The main idea behind the emissions tax is clearly that it should not generate any revenue", Bruus said in an interview in New York, during an event called "Partnerships for the Future", organized by the Danish Consulate. "The idea is that they shouldn't have to pay the tax because they're not polluting", the official added.
Last year, Denmark became one of the first countries in the world to propose this type of tax targeting farm animals, a major source of planet-warming emissions. New Zealand announced a similar proposal in 2022 but abandoned the plan two years later following farmer protests.
Denmark, a major exporter of pork and dairy products, aims to penalize farmers for every ton of carbon dioxide generated from raising cows and pigs starting in 2030. The initiative, which is part of Denmark's efforts to meet its goal of a 70% reduction in emissions by 2030 compared to 1990 levels, also includes incentives for farmers to invest in pollution-reducing technologies.
In parallel, the Copenhagen government is making its own investments, including in a feed additive called Bovaer, manufactured by DSM Firmenich AG, which limits burping in cows by reducing an enzyme that produces methane, a powerful greenhouse gas. The government is also investing 10 billion kroner ($1.6 billion) in pyrolysis, a technology that turns methane-producing manure into usable products like energy and fertilizer.
The idea is to stimulate the development of new technologies, but the slow approval procedures of the European Union could be a major obstacle, Bruus said. Companies that create biopesticides—more environmentally friendly methods of pest control-wait up to eight years for European approvals, which has led these companies to consider moving to the U.S., where there are fewer regulations, according to Bruus.
The five-year timeline for the tax to take effect gives officials the necessary time to work out the details, such as how to account for emissions that vary depending on the animal's breed. The government already keeps detailed records of farms as part of existing agricultural regulations, but may need additional information, said N
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