Highlight:

• Denmark has reached an agreement on climate taxation for the agricultural sector. This includes methane from burping and farting from animals under the "Green Tripartite Agreement" (Green Tripartite Agreement)

• It was first announced in June atAfter negotiations between the main political parties. Farmers, industry, trade unions, and environmental groups for months.

Denmark's Greenhouse Gas Emissions Tax and Environmental Restoration Agreement  It consists of:

• Taxation of greenhouse gas emissions

Starting in 2030, the tax will be levied at a rate of 42 USD. This rate will increase to US$106 by 2035.

• Tax incentives for farms with low greenhouse gas emissions

Offering 60% tax breaks to encourage farms to reduce emissions As a result, the tax rate for low-emission farms will be $17 in 2030 and $42 in 2035.

• Reforestation and wetland restoration

Green Landscape Restoration Fund (Green Landscape Fund) To promote biodiversity and reduce carbon emissions. It has a budget of 5.4 billion euros from the government, with plans to plant 1,562,500 rai of new forests and restore peat areas (peatlands) 875,000 rai to return to its natural state.

Peatlands are wetlands that are saturated with soil and are considered important carbon sinks. Currently, about 60% of the land in Denmark is used for agriculture, which is considered the highest in the world compared to the entire area of the country. The same is true for Bangladesh.

The agreement also uses tax revenues to promote green technologies and projects and incentivize farmers to reduce greenhouse gas emissions, which is expected to reduce Denmark's carbon footprint by up to 2.6 million tonnes by 2032.

Agriculture hasThis has caused the aquatic environment to deteriorate. The use of chemical fertilizers makesNitrogen is washed out.into water bodies, coastal seas and fjords, oxygen in water bodies decreases. The agreement is expected to reduce nitrogen pollution by 13,780 tonnes per year from 2027 to restore coastlines and fjords.  

The digestive system of ruminants (Ruminant) Cows and sheep have a fermentation process in their stomachs that produces methane, which has the potential to warm the planet many times more than carbon dioxide. When it comes to livestock farming around the world. The gases emitted by animal husbandry have a significant impact on climate change.

Despite criticism from some quarters, the agreement demonstrates the readiness to help the world, Denmark and other countries learn from and apply it to the ongoing fight against climate change.

References

1. New Zealand Ministry of Foreign Affairs and Trade. A Green Denmark: First country to tax agricultural emissions - November 2024 [Internet]. New Zealand Ministry of Foreign Affairs and Trade. 2024. Available from: https://www.mfat.govt.nz/en/trade/mfat-market-reports/a-green-denmark-first-country-to-tax-agricultural-emissions-november-2024
2. Khalil H. Flatulence tax: Denmark agrees deal to tax farmers for livestock emissions [Internet]. 2024. Available from: https://www.bbc.com/news/articles/c20nq8qgep3o