Denmark’s Livestock Carbon Tax

In a world first, Denmark is set to become the first nation to impose a GHG tax specifically on livestock emissions. In 2030, a fee of 300 Danish crowns ($43.60 USD) will be charged to farmers per ton of CO2-e. The fee is set to rise to 750 crowns ($109 USD) by 2035. Deductions built into the tax scheme will, however, make the effective tax rate just less than half of that sticker price. In the first two years of the tax, proceeds will be returned as a transition support pool to support the green transition of the industry. Handling of the proceeds will be revisited in 2032.

The tax is expected to be formally approved by the Danish parliament in August 2024.