Denmark introduces CO₂ tax on meat and dairy products

Denmark is set to take a historic step by becoming the first country in the world to introduce a CO₂ tax on meat and dairy products. Starting in 2030, farmers will be required to pay for greenhouse gas emissions, with the aim of reducing the agricultural sector's impact on the climate. This initiative is the result of a broad consensus among various stakeholders, including agricultural organizations, environmental groups, and the Danish government. The plan initially calls for farmers to pay 40 euros per ton of CO₂, increasing to 100 euros by 2035.

Notably, many Danish farmers support the proposal, despite the financial burden it entails. This support is partly due to the extended implementation period, which allows farmers time to adapt and invest in more sustainable production methods. Additionally, they will receive tax benefits and subsidies for green investments, making the effective tax burden lower than in other sectors. This gives farmers the opportunity to invest in techniques that reduce methane emissions, such as modified animal feed and biogas production.

Economic impact and criticism

While the CO₂ tax appears to have positive effects on the sustainability of agriculture, concerns have been raised about the economic consequences. It is expected that meat prices will rise and that jobs may be lost in the agricultural sector. However, the Danish government emphasizes that new jobs will be created in areas such as renewable energy projects. Environmental activists have criticized the plan, arguing that the tax is too low and that it may not lead to significant changes in intensive livestock farming. Despite the criticism, Denmark sees the measure as an important step towards a more sustainable future.

Reuters.com