By Sanne Wass

Denmark will introduce a levy on farm emissions in what is set to be one of the world’s first carbon taxes on agriculture, helping the Nordic nation reach its 2030 climate target with backing from key industry and environmental groups.

Farmers will be taxed 300 kroner ($43) per ton of CO2 equivalent emitted from 2030, the government said on Monday. Five years later, the tax will rise to 750 kroner per ton, though farmers will benefit from higher tax deductions.

Denmark is set to become one of the world’s first nations to introduce such measures. New Zealand, whose proposed levy had inspired the Scandinavian country, said earlier this month it would delay its plans to introduce farm emissions pricing to 2030 at the latest.

Denmark’s plan is estimated to reduce emissions by 1.8 million ton of CO2 in 2030, enabling the country to meet its target for that year to cut emissions by 70%. Apart from the tax, the government will also introduce subsidies worth 40 billion kroner to support the transition.

Negotiations about the tax have been underway since February, involving bodies representing farmers and the food industry, the country’s nature conservation organization and the Danish government, who have been evaluating taxation models presented by a government-commissioned advisory group.

Agriculture in Denmark, a big exporter of pork and dairy, is one of the Nordic countries’ biggest emitters. Without intervention, farming would account for 46% of Danish emissions in 2030, according to the advisory group.

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