Denmark to Introduce World’s First CO2 Tax on Farms

Source: Economic Times

Context: Denmark will impose a tax on livestock CO2 emissions from 2030, the first country to do so, aiming to meet its 2030 goal of reducing greenhouse gas emissions by 70% from 1990 levels.

The government reached a compromise with farmers, industry, labour unions, and environmental groups. The tax will start at 300 Danish crowns per tonne of CO2, rising to 750 crowns by 2035, with income tax deductions and subsidies to support farmers. This initiative is expected to inspire similar actions in other countries.

About Denmark :

Denmark is a Nordic country, part of the Jutland Peninsula, shares a territorial boundary with Germany to the south and is bordered by the North Sea on the west coast and Kattegat Bay on the east coast. Geographically, Denmark is an archipelago of around 400 islands, with Zealand being the largest.