Denmark contemplates taxing cow farts
Date
6/30/2024 7:43:39 AM
(MENAFN) Denmark is gearing up to introduce a pioneering tax aimed at reducing greenhouse gas emissions from livestock, according to Taxation Minister Jeppe Bruus. The new regulation, set to take effect in 2030, will impose a levy on farmers for the emissions produced by cows, pigs, and sheep. This initiative is a key component of Denmark's ambitious strategy to slash emissions by 70percentfrom 1990 levels by the end of the decade, with the ultimate goal of achieving carbon neutrality. Bruus highlighted that this measure represents a significant step towards Denmark's aspiration to become climate neutral by 2045, making it the first country to implement a comprehensive CO2 tax on agriculture.
Under the new law, livestock farmers will be taxed 300 kroner (USD43) per ton of carbon dioxide equivalent generated by their animals. Initially, there will be a 60percentincome tax deduction on this amount to ease the financial burden on farmers. Despite this deduction, the impact on dairy farmers is expected to be substantial. On average, a Danish cow produces approximately six metric tons (6.6 tons) of CO2 equivalent annually, which is significantly higher than the emissions from pigs and sheep.
Denmark's cattle population is substantial, with nearly 1.5 million cows, according to Statistic Denmark. This population size translates to over USD400 million in annual carbon taxes, making the new tax a major financial consideration for the country's livestock industry. The tax rate is planned to increase over time, reaching 750 kroner per ton by 2035.
Dairy farming is a significant contributor to greenhouse gas emissions, particularly methane, which is a potent greenhouse gas. The United Nations Environment Program estimates that livestock contribute around 32 percent of methane emissions resulting from human activity. By targeting livestock emissions, Denmark aims to make a meaningful impact on its overall greenhouse gas emissions and set an example for other nations in the fight against climate change.
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