Danish carbon tax could cost farmers £200 a cow by 2035

Farmers in Denmark will be required to pay a tax of 120 Danish krone (£13.40) on each tonne of carbon equivalent emitted on farms from 2030.

This figure is after accounting for a 60% tax break for livestock emissions.

A higher tax rate of 300 Danish krone (£33.40) a tonne figure will then be introduced from 2035, including the 60% tax relief.

See also: Danish farmers could face first carbon tax on agriculture

Industry estimates suggest that this will result in a carbon tax of roughly £80 for each cow in 2030 and £200 a cow from 2035 onwards, based on an individual cow emitting 6t of carbon equivalent a year.

New measures have been introduced following a vote in the Danish Parliament to fully support its Green Tripartite Agreement.

Jenny Brunton, senior European policy advisor at the British Agricultural Bureau (BAB) said: “Copenhagen is a significant exporter of pork and dairy, and agriculture is currently expected to account for 46% of emissions by 2030.

“Experts believe the carbon tax will slash 1.8m tonnes of that in 2030, its first year of operation, enabling Denmark to meet its target of cutting 70% of its total emissions by that year.”

However, economic modelling indicates that this tax could have a significant detrimental impact on the profitably of farms in Denmark and lead to lower livestock throughputs.

The agreement also commits to major tree planting objectives on 250,000ha of Danish farmland by 2045 with 1bn trees due to be planted.

A further target to restore 70,000ha of peatland has been included in the agreement as part of the wider commitment to “nature protect” at least 20% of Danish land.