Denmark has announced plans to become the first country to implement a tax specifically targeting methane emissions from livestock, particularly cattle, which produce methane during digestion.
This initiative aims to reduce greenhouse gas emissions from the agricultural sector as part of Denmark's goal to achieve climate neutrality by 2045. Cattle are significant contributors to methane emissions, with each cow releasing approximately 100 kilograms of methane annually. Methane is reported to be 25 times more potent than carbon dioxide in terms of global warming impact.
Starting in 2030, the tax will be set at 40 euros per ton of methane, translating to an annual cost of around 4 euros per cow for farmers. This policy is part of a broader strategy to decrease the overall number of livestock in Denmark, with the expectation that it will not only lower methane emissions but also improve public water quality affected by agricultural runoff.
To mitigate the financial burden on farmers, the Danish government will offer a 60 percent tax relief. This measure seeks to balance environmental sustainability with the viability of the livestock industry.
However, Greenpeace Denmark has criticized the initiative as insufficiently ambitious, expressing concerns that it may not lead to a significant reduction in livestock numbers and, consequently, limited environmental benefits. The effectiveness of this policy in achieving its goals remains to be seen.