The burps, farts, and excretions of animals like cattle and sheep all release greenhouse gases. In 2022, New Zealand introduced a "cow fart tax," a global initiative that drew global attention. However, due to farmer outcry, the tax was rescinded in June 2024. Instead, Denmark, a major pork and dairy exporter, took over.
Denmark reached an agreement at the end of June to impose a tax on livestock carbon emissions starting in 2030. This translates to approximately NT$3,100 per dairy cow per year. This more comprehensive agreement, in addition to the cow fart tax, also includes plans for rewilding wetlands and soil, reforestation, and establishing a fund. With bipartisan support, it is expected to pass parliamentary scrutiny, making Denmark the first country in the world to impose an agricultural carbon tax.
A cow will pay NT$3,000, with a slight impact on prices.
Denmark has set a climate goal of reducing greenhouse gases by 70% by 2030. Agriculture is Denmark's largest source of carbon dioxide emissions, making carbon reduction a major challenge. After five months of negotiations, the government, farmers' groups, and conservation groups finally reached a historic agreement.
Reuters reported the results of the negotiations, which stipulate that starting in 2030, agriculture will pay a 300 kroner (approximately NT$1,400) per metric ton of carbon emissions, increasing to 750 kroner (NT$3,500) in 2035.
However, the government will provide a 60% tax deduction, resulting in a carbon fee of 120 kroner and 300 kroner in 2030 and 2035, respectively. Additional subsidies will also be provided to help farmers transition to a greener environment.
CNN cited an analysis by the Danish green think tank Concito, which found that, assuming a dairy cow emits an average of 5.6 metric tons of carbon dioxide annually, with tax deductions, the annual tax paid by a cow in 2030 would be approximately 672 kroner (approximately NT$3,100).
Currently, ground beef retails for around 70 kroner per kilogram at discount stores. The new tax is expected to drive up prices for beef products. Danish Minister of Economic Affairs Stephanie Lose stated that the price of ground beef could increase by 2 kroner (approximately NT$9) per kilogram by 2030.
CNN reported that the government will use the tax revenue from the first two years to assist farms with transitions, such as changing cattle feed. The Danish farmers' group Bæredygtigt Landbrug called these measures a "horrible experiment." Arla Foods, Europe's largest dairy group, agreed that the agreement was "positive," but said farmers already working to reduce carbon emissions should not be taxed.
Rewilding soils and reforestation
Compared to New Zealand's failed "bull fart tax," agricultural investment media outlet Agri Investor believes that Denmark's proposal not only enjoys cross-party support but also includes projects such as biodiversity, afforestation, and drinking water protection, making it more comprehensive and worthy of careful consideration.
Agricultural carbon emissions aren't solely caused by cattle. The conversion of marshes, lakes, river valleys, and grasslands to farmland also contributes to carbon emissions. Denmark plans to rewild the organic soils in these low-lying areas.
The Copenhagen Post reported that landowners will also pay a carbon fee for using pesticides, engaging in forestry, and disturbing carbon-rich agricultural soils. The agreement includes a 40 billion kroner (approximately NT$188 billion) fund to subsidize soil rewilding and the planting of 250,000 hectares of forest. Of these, 100,000 hectares will be free of forestry operations.
Denmark was able to reach the agreement thanks to the Green Tripartite, a negotiating platform formed by the government, non-governmental organizations, nature and agriculture groups to address issues such as high carbon emissions in agriculture, land management, nature and drinking water resources.
References：
*CNN（2024/6/26），World’s first carbon tax on livestock will cost farmers $100 per cow
*Copenhagen Post（2024/6/25），Denmark announces world-first climate tax on agriculture – earmarks billions for rewilding
*Reuters（2024/6/25），Denmark will be first to impose CO2 tax on farms, government says
*Agri Investor（2024/7/3），‘Burp tax’ goes belly-up in NZ as Denmark eyes 2030 intro
Sources: Environmental Information Center
