Danish Parliament Agrees Green Deal to Tax Meat Production & Promote Plant-Based Foods

After months of negotiations, Denmark’s policymakers have agreed on how to implement the livestock emissions tax they announced in June.

Denmark’s bid to tax livestock farmers and turn farmland into forest has received a broad majority in the parliament, paving the way for a greener agriculture sector.

Following negotiations between the country’s major parties, farmers, trade unions, and climate groups, Denmark will channel 43 billion Danish kroner ($6.1B) to buy land from farmers and convert it into forests, with a plan to plant a billion trees on agricultural land in the next two decades.

The stakeholders have also agreed on how the country will implement the greenhouse gas levy on meat and dairy farmers it announced in June, while amping up support for plant-based foods.

The deal is based on the Green Tripartite, an association between the government and trade groups that had been discussing the carbon tax since February and evolved into a ministry in August to introduce the green deal.

A focus on nitrogen pollution and livestock emissions

Agriculture is Denmark’s largest source of emissions, contributing to over 22% of its climate footprint. And if left unabated, the sector will account for 46% of its emissions by the end of the decade – this is why addressing agriculture is key for the country to meet its legally binding target of cutting emissions by 70% by 2030 (from a 1990 benchmark).

This is why the Green Tripartite was formed. Under the agreed deal between the government, farm industry and climate groups, Denmark is aiming to curb nitrogen pollution, which has damaged its coasts and fjords, where oxygen levels have reached alarmingly low levels due to nutrient runoff from fertilisers. The country isn’t on track to meet the targets set by the Water Framework Directive by 2027.

The green deal will give farmers with large quantities of peatland or nitrogen-leaching areas an incentive to turn from intensive land use towards afforestation, efforts that would be supported by the Green Land Fund. This will funnel 30 billion kroner ($4.3B) into reforesting 250,000 hectares of farmland by 2045 and extracting 140,000 hectares of lowland by 2030 to make at least 20% of Denmark’s nature protected.

Currently, around 60% of Denmark’s area is cultivated, making it the country with the joint-highest share of arable land (alongside Bangladesh).

“Danish nature will change in a way we have not seen since the wetlands were drained in 1864,” said Jeppe Bruus, the minister for the green transition, as quoted by AFP. He stated that a “huge, huge task” was underway now, involving the transformation of “large parts of our land from agricultural production to forestry, to natural spaces, to ensure that we can bring life back to our fjords”.

One of the other major tenets of the green deal is the agriculture tax, which made up the bulk of the headlines in June. Denmark is the first country to take such a stand against the impact of livestock agriculture on the planet. The move couldn’t have come more quickly: it is a major exporter of pork and dairy, and beef consumption alone equates to 45% of its emission reduction targets.

As part of the agreement, farmers will have to pay 300 Danish kroner ($43) per tonne of CO2e from cows and pigs starting 2030, which will rise to 750 kroner ($108) in 2035. But since farmers will receive an income tax deduction of 60%, the actual levy will be 120 kroner ($17) per tonne of CO2e initially, increasing to 300 five years later.

According to Danish think tank Concito, the average cow in the country produces six tonnes of CO2e per year, meaning livestock farmers will have to pay over $100 for their herd’s emissions in 2030, and more than $250 from 2035.

Denmark doubles down on plant-based transition

But Denmark isn’t just stopping at addressing livestock – it’s actively pushing for a transition to a plant-based food system, for which it rolled out a national action plan last year. This was part of the 2021 green agriculture plan, which set aside 675 million kroner ($96M) for the creation of a Fund for Plant-Based Foods (Plantefonden).

During the negotiation of the green deal, the Green Left and Danish Social Liberal Party advocated for the plant-based transition to be a long-term priority, according to the Vegetarian Society of Denmark. The lawmakers have agreed to add 420 million kroner ($60M) to the Plantefonden between 2025 and 2030. But the fund is now permanent (it was previously set to end in 2030), and can see the investment value jump to one billion kroner ($142M).

An additional 15 million kroner ($2M) has also been allocated to other plant-based initiatives, with specific details to be agreed upon by the negotiators. Further, Denmark has committed to advocating for an EU-wide plant-based action plan, something even farmers have been calling for.

“What we hear from scientists and NGOs in other countries – and at this year’s climate summit – is that it is of tremendous importance for Denmark to continue prioritising plant-based solutions and to take responsibility for advancing this agenda internationally,” said Rune-Christoffer Dragsdahl, the head of the Vegetarian Society of Denmark.

“Therefore, we are particularly pleased to see that the Danish government is now committed to advocating for this at the EU level. The timing is perfect, as Denmark holds the EU presidency next fall,” he added.

“There is still much work ahead, and we have not yet crossed the finish line. Agriculture must and will transition, and now there is clarity on direction and investments,” remarked climate and energy minister Lars Aagaard. “This is green action that works. The agreement is a milestone, deeply rooted both in Parliament and among stakeholders and organisations. This is Denmark at its best.”