Denmark unveiled a long-term plan, on 24 June 2024, to restructure its agricultural industry and land use. This plan tackles greenhouse gas emissions with a new tax on livestock emissions.

“We will be the first country in the world with a (carbon) tax on agriculture,” said Foreign Minister Lars Lokke Rasmussen.

The new carbon tax will introduce  DKK 300 per tonne of CO2 equivalent (CO2e) in 2030, rising to DKK 750 per tonne by 2035. After a 60% deduction, the effective tax rates will be DKK 120 per tonne in 2030 and DKK 300 per tonne in 2035.

In addition to the carbon tax, Denmark’s comprehensive plan includes funding for extensive environmental projects.

Approximately DKK 40 billion will be allocated to The Green Landscape Fund, supporting the creation of 250,000 hectares of new forests and the restoration of 140,000 hectares of peatlands. These efforts are aligned with Denmark’s commitment to comply with the EU Water Framework Directive by 2030.

The government and the parties in the Green Tripartite agree on the long-term basis for the restructuring and conversion of Denmark’s land and food and agricultural production. The efforts in the agreement will reduce the sector’s emissions of greenhouse gases and contribute to achieving Denmark’s 2030 climate goals, as well as ensure better conditions for nature, biodiversity, aquatic environment and drinking water.

“I would like to say a big thank you to the parties, who have all shown the will to find a good compromise with the right balances. In Denmark, we have a good and strong tradition of solving major challenges together, and the green tripartite is now writing itself into that history. The agreement will make Denmark an international leading country for future green land management. We can all be proud of that,” said Henrik Dam Kristensen, Chairman, Green Tripartite.