Denmark is rewriting the playbook on climate action with a bold new tax targeting methane emissions from livestock. Starting in 2030, farmers will pay for the greenhouse gases produced by their cows, pigs, and sheep—a groundbreaking move to slash emissions by 70% compared to 1990 levels.
Dubbed the “fart tax,” this policy tackles methane’s staggering climate impact while balancing agricultural productivity.
Unlike other attempts, Denmark has won support from both environmentalists and farmers, crafting a compromise backed by subsidies and innovation funds. Could this become the blueprint for global agricultural reform?
Historical Context
This isn’t Denmark’s first attempt at such a measure. In 2009, the Danish Tax Commission proposed a cow flatulence tax of $110 per cow annually, (ref) which would cost the average farmer with 120 cattle approximately DKK100,000 ($14,066.80) per year.
However, that proposal was scrapped after extensive lobbying from farming groups.
The Tax Structure
Starting in 2030, Danish farmers will pay 300 kroner ($43) per ton of carbon dioxide equivalent, (ref) increasing to 750 kroner ($108) by 2035. However, farmers will receive a 60% income tax deduction, reducing the initial cost to 120 kroner ($17) per ton.
For perspective:
- A typical Danish cow produces 6.6 tons of CO2 equivalent annually
- The tax will initially cost about $96 per cow per year
- Proceeds will support the agricultural industry’s green transition
Environmental Impact
Though less discussed than carbon dioxide, methane is approximately 87 times more potent at trapping heat over a 20-year period.
The livestock sector bears significant responsibility for climate change:
- Livestock accounts for 32% of human-caused methane emissions
- Denmark’s agricultural sector is the country’s primary source of climate-related pollution
- Approximately two-thirds of Denmark’s territory is dedicated to agriculture
Industry Response & Implementation
Unlike similar initiatives elsewhere, Denmark’s approach has garnered broad support from key stakeholders. The agreement resulted from collaborative discussions between the center-right government, farmers, industry representatives, and environmental organizations.
Arla Foods, Europe’s largest dairy cooperative, has endorsed the measure, recognizing it as a manageable compromise for dairy farmers.
The tax is part of a comprehensive environmental strategy that includes:
- Planting 618,000 acres of new forests
- Restoring 346,000 acres of farmland to natural peatlands
- Reducing nitrogen pollution in coastal ecosystem
Support Measures for Farmers
The Danish government has introduced several support mechanisms for affected farmers to ease the transition. A dedicated fund of 1.5 billion kroner ($216 million) will assist farmers in adopting emission-reducing technologies and practices.
Additionally, farmers can access:
- Low-interest loans for green technology investments
- Technical assistance and consulting services
- Research grants for innovative farming methods
- Tax credits for implementing emission-reduction strategies
Global Implications
Denmark’s initiative starkly contrasts New Zealand’s experience, where a similar law was recently repealed following farmer protests and a change in government.
The success or failure of Denmark’s program could influence other nations’ approaches to agricultural emissions. The country aims to achieve climate neutrality by 2045, positioning itself as a global leader in environmental policy.
The measure represents a delicate balance between environmental protection and agricultural productivity in a nation that hosts five times more pigs and cows than people.
As the world watches this pioneering effort, Denmark’s livestock emission tax could become a model for other countries seeking to address agricultural contributions to climate change.
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Davin is a jack-of-all-trades but has professional training and experience in various home and garden subjects. He leans on other experts when needed and edits and fact-checks all articles.