HomeGlobal Economic NewsDenmark Introduces Climate Tax Targeting Cow Emissions

Denmark Introduces Climate Tax Targeting Cow Emissions

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Denmark’s Parliament has approved a groundbreaking measure known as the Green Tripartite, which will introduce a tax on farmers for the methane emissions produced by livestock, specifically targeting cow burps and farts. Starting in 2030, farmers will be charged 300 Danish kroner (approximately $43) for every ton of carbon dioxide equivalent emitted, increasing to 750 kroner ($106) by 2035, as reported by The New York Times.

Jeppe Bruus, Denmark’s green transition minister, emphasized that farmers will be encouraged to purchase specific feed additives to reduce methane emissions. By implementing these changes, they can qualify for a rebate on the tax.

The coalition backing the measure includes the Socialist People’s Party, the Liberal Alliance, the Conservative Party, and the Danish Social Liberty Party, often referred to as the Radical Left. Bruus stated, “A tax on pollution aims to change behavior.”

In the U.S., there are already technologies designed to monitor cow emissions. Notably, Bill Gates is among the major investors in efforts to reduce methane, having backed an Australian startup called Rumin8, which focuses on incorporating seaweed into cow feed to lower emissions.

While some advocate for these technological solutions, Denmark’s farming lobby has strongly opposed taxing farmers. Nevertheless, some large agricultural companies, like Arla Foods, Denmark’s largest dairy cooperative, have expressed support for the measure. CEO Peder Tuborgh noted that farmers recognize the importance of this initiative for their industry’s reputation. “They understand they need to do it; they want to do it,” he said. “They know it is protecting their reputation, and they’re still producing.”

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