Denmark is set to become the first country in the world to tax farmers for the greenhouse gasses their cows, pigs and sheep emit, all in the name of fighting climate change. Research shows that the average cow releases up to 84 gallons of methane every day, so, the Danish government agreed to impose a new emissions tax on livestock starting in 2030.
The tax bill will likely be large for Danes, since the country is a major exporter of dairy and pork. The reported cost to farmers will be around $100 a year per cow annually.
The added tax is raising a stink among some in the agricultural industry in Europe. A spokesperson for a group representing Danish farmers said that they recognize that Climate Change is a problem, but the spokesperson called the agreement “pure bureaucracy.”
Others were more lukewarm; Europe’s largest dairy group’s CEO said the agreement was “positive” but farmers who “genuinely do everything they can to reduce emissions” should not face the tax. Additionally, he said that the tax should “be based on emissions for which there are means to eliminate them.
Under the agreement, which still needs to be approved by parliament where it’s expected to pass, farmers will be taxed around $43 per ton of carbon dioxide equivalent by 2030, which increases to about $108 by 2035. There’s a caveat, though, because of an income tax of 60%, which will make the actual cost per ton around $17 by 2030 and increases to about $28 by 2035.
The goal of the law is to reduce the country’s greenhouse gas emissions by 70% from 1990 levels by 2030.
Fox News reported that New Zealand passed a similar that was set to take effect in 2025. However, the legislation was removed on Wednesday after reportedly criticism from farmers and a change of government after the 2023 election.
