Denmark introduces CO2 tax on agriculture by 2030

From 2030, Danish agriculture will be subject to a CO2 tax, with a base deduction to reduce costs. The green tripartite agreement, supported by a broad majority in the Danish Parliament, also aims to increase forests and improve water environments. The initial CO2 tax will be DKK 300 per ton in 2030, rising to DKK 750 in 2035. With a 60% base deduction, the effective rates will be DKK 120 and DKK 300 respectively. The tax is based on emissions from livestock digestion and manure handling. Ten percent of Denmark’s total area is to be converted to nature and forest by 2045, including turning 140,000 hectares of carbon-rich soils into nature and establishing 250,000 hectares of new forest. Support for further land conversion and the reduction of nitrogen emissions in water bodies are also part of the agreement.