Denmark has announced the world’s first carbon tax on livestock, a bold step in its climate strategy. Starting in 2030, Danish farmers will face a tax of 300 kroner ($43) per ton of CO2 equivalent, rising to 750 kroner ($108) by 2035, with a 60% income tax deduction. Methane, a potent greenhouse gas, is the primary target, with livestock responsible for about 32% of human-caused emissions. Denmark, a major dairy and pork exporter with 1.48 million cows, expects this tax to help cut its greenhouse gas emissions by 70% from 1990 levels by 2030.

This move aligns Denmark’s agricultural policies with its climate goals, contrasting sharply with New Zealand’s recent decision to scrap similar legislation after significant opposition. The tax has received broad support, including from the Danish Society for Nature Conservation, which calls it a “historic compromise.” A typical Danish cow emits 6 metric tons of CO2 equivalent annually, making this measure crucial for Denmark’s environmental commitments.

Taxation Minister Jeppe Bruus emphasizes that this initiative is part of Denmark’s broader strategy to lead in sustainable agriculture. The funds generated from the tax will be reinvested in green technologies and practices to further reduce agricultural emissions.

Denmark’s approach underscores the urgency of addressing agricultural emissions and sets a precedent for other nations grappling with similar challenges. The Folketing (parliament) is expected to pass this legislation, marking a significant milestone in global climate policy.