Denmark Proposes Carbon Tax on Agriculture Emissions

The Danish government is set to unveil a long-anticipated proposal for a carbon tax targeting agricultural emissions. This move follows years of debate since 2025, with a draft proposal leaked earlier this week. The plan is poised to stir intense political discussions and protests from farmers, driving search interest. The Ministry of Taxation and the Ministry of Food, Agriculture and Fisheries have been developing the CO2 tax for livestock since the green tripartite agreement of 2024. According to a draft obtained by Danish broadcaster DR on April 25, the tax would be set at 750 kroner per ton of CO2 equivalent starting in 2028, increasing to 1,500 kroner per ton by 2035. Farmers' association Landbrug & Fødevarer has described the proposal as "unworkable." The formal proposal is expected to be presented to parliament on April 29. This development is a key part of Denmark's broader efforts to address climate change within its agricultural sector. As Lars Hansen, Danish business correspondent, notes, the proposal could affect trade dynamics, particularly for Denmark's pork and dairy exports to markets like Germany and the UK. The Øresund region, home to major agri-business hubs, may see shifts in investment and operations.