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Denmark wants to introduce a CO₂ tax – and all the important players are on board. Even the farmers are happy. A concept for Germany too?
Copenhagen – Denmark is expected to be the first country in the world to impose a CO₂ tax on climate-damaging areas of agriculture. Only New Zealand had such a package of laws for a short time, but it was repealed shortly before it came into force. South of Denmark, in Germany, such a tax is hardly conceivable. Farmers’ protests of the last few months made it clear: There is a high level of dissatisfaction in the agricultural sector.
The reason for the high level of acceptance in Denmark is primarily a matter of timing: if the draft law is adopted, the climate tax would not come into force until 2030. In addition, the proposed law is a compromise based on the work of an expert commission that was negotiated over months with a large number of associations – including representatives of the Danish agricultural and food industry. The final vote in parliament, which is due to take place in the autumn, is expected to be dealt with quickly due to the previous debates.
CO₂ tax is almost certain to be adopted: This is what Denmark and its farmers will face in 2030
The law provides for a tax of the equivalent of 40 euros per tonne of CO₂ equivalent from 2030, but this is to rise to the equivalent of 100 euros per tonne by 2035. At the same time, however, farmers are to be given income tax relief, especially for green investments. The effective burden would be the equivalent of around 15 euros (2030) and 40 euros (2035).
In addition, around four billion euros will be made available for the decommissioning of land and its reforestation, as well as 1.3 billion euros for the storage of biochar from pyrolysis, which stores CO₂ from the air. Improvements are also planned for Danish coastal waters, for example to reduce nitrate concentrations through fertilization.
In Denmark, meat and dairy products are among the most important export goods. The compromise is intended to bring the country closer to the goal of reducing CO₂ emissions by 70 percent by 2030 compared to 1990. Agriculture currently accounts for 35 percent of total emissions – a share that is to be significantly reduced during the preparation period for the new tax.
Farmers satisfied with draft bill for CO₂ tax – but there are still some points of criticism
According to the Danish newspaper, the chairman of the food industry lobby “Landbrug & Fødevarer”, Søren Søndergaard, was Mirror satisfied that “it is still possible to develop the industry further instead of dismantling it.” The agricultural sector in Denmark is also frugal because other sectors of the economy have a higher CO₂ price.
According to information from the Austrian Industry magazine Denmark has one of the highest tax rates for emissions among all EU-States. A dairy farmer told the broadcaster Denmark Radio that the tax is an incentive for him to reduce emissions on his farm.
Despite the gentle introduction of the CO₂ tax, at least slight price increases for meat products are expected. The loss of around 2,000 jobs would also be expected, according to government information provided to the Channel TV2 However, other measures, such as the promotion of pyrolysis, could also create jobs. Greenpeace, however, criticized the levies for being too low.
Denmark sees CO₂ tax as a showcase project – could Germany follow suit?
Social Democratic Tax Minister Jeppe Bruus, according to the Mirror other countries to introduce such a climate tax. A similar proposal could also convince the Federal Minister of Agriculture Cem Özdemir (Green), who had previously called for a tax on meat and meat products. In response to a press inquiry from IPPEN.MEDIA The minister has not yet responded.
At the German Farmers’ Day, Özdemir loudly demanded BR24 a slight increase in VAT on meat, which caused mixed reactions. The environmental organisation saw the proposal as a “rotten compromise”. The consumer organisation Foodwatch, on the other hand, called for a simultaneous reduction in taxes on Fruit and VegetablesThe concept for this was already presented in 2020, at that time still known as “Tierwohlcent”. (lismah)
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