Today’s news / Denmark’s eco deal faces 5 billion funding gap
The Minister for Green Tripartite, Jeppe Bruus (S), is not only involved in political negotiations these days. Tuesday evening, he attended a gala dinner where King Frederik and Queen Mary were hosts for the President of Iceland at Christiansborg Palace. Photo: Bo Amstrup/Ritzau Scanpix

Denmark’s eco deal faces 5 billion funding gap

The Danish government is short of 5.3 billion kroner for the 2030 green tripartite agreement, media reports from Altinget and Børsen reveal. The June deal targets transitioning Denmark’s land use and agriculture but isn’t legislated yet. It includes setting up a 40 billion kroner land fund to convert 15% of farmland into forests and introduce a CO2 tax on agriculture. The government may need to relax fiscal policies around 2026-2027 to manage financial deficits, with a funding gap of approximately two billion kroner in 2026-2027 and more than three billion in 2029-2030. The plan is to address these shortfalls during future budget negotiations. Some political parties, like the Danish Democrats, have left talks due to disagreement over the CO2 tax on farming. Minister Jeppe Bruus has not commented on the specifics of the ongoing negotiations.