Denmark will introduce the world’s first emissions tax on agriculture from 2030, requiring farmers to pay for greenhouse gases released by their cows, sheep and pigs.
The Danish government said the aim is to lower greenhouse gas emissions by 70 percent by 2030.
“We will take a big step closer in becoming climate neutral in 2045,” Taxation Minister Jeppe Bruus said. Bruus said he hoped other countries would follow suit and implement a similar tax.
Livestock farmers will be taxed $43 per ton of carbon dioxide equivalent in 2030. The tax will increase to $108 by 2035.
The agreement was reached on Monday between the center-right government and representatives of farmers, industry and unions.
New Zealand passed a similar law which was set to be implemented in 2025, but it was quashed on Wednesday, after criticism from farmers.
Livestock account for more than 30 percent of human-caused methane emissions.
Around 90 percent of the methane from raising livestock comes from the way they digest and is released as burps through their mouths. Cows contribute to most of this belched methane.
Maria Reumert Gjerding, Head of the Danish Society for Nature Conservation, said the tax was “a historic compromise.” “We have succeeded in landing a compromise on a CO2 tax, which lays the groundwork for a restructured food industry -– also on the other side of 2030,” Gjerding said.