Denmark Proposes 750 DKK CO2 Tax on Agriculture Set for 2027

Denmark's coalition government is expected to present a new agricultural CO2 tax on May 15 as part of its 2030 climate plan. The proposal sets a tax of 750 Danish kroner (around 100 USD) per tonne of CO2 equivalent starting in 2027, with gradual yearly increases. This makes Denmark one of the first countries to apply a carbon tax directly to farming emissions. The tax is the result of a compromise between the Social Democrats and left-wing parties in the governing coalition. It is designed to push the agricultural sector toward greener practices, particularly in livestock farming, where methane emissions are high. The Danish government sees this as a key step to meet its 2030 climate targets, requiring cuts in greenhouse gases from agriculture. The farmers' organization Landbrug & Fødevarer has already warned of protests. The group argues the tax could hurt farm incomes and make Danish agriculture less competitive compared to other countries. Farmers' protests have been seen across Europe this year over environmental regulations and cost pressures. Business observers note that Copenhagen-based agricultural exporters could face higher costs, but also opportunities in low-carbon products. The Øresund region, which includes parts of Denmark and Sweden, is home to several food companies that may need to adapt. The tax will be debated in parliament, with implementation planned from 2027.