The CO2e tax on livestock and other financial elements of the Green Tripartite
Updated
Land-use conversion is linked to the agreement's financial elements. Here are the key elements, as set out in the government's fact sheet from June 2024.
CO2e tax on livestock
A tax of DKK 300 per tonne of CO2e will be introduced in 2030, rising to DKK 750 in 2035, with a basic allowance of 60 per cent. The effective tax will therefore be DKK 120 per tonne in 2030, rising to DKK 300 in 2035.
Revenue recycling
Revenue from the livestock tax in 2030-31 will be returned to the sector through a support fund for its green transition. These arrangements will be reviewed in 2032.
Biochar
A subsidy scheme totalling just over DKK 10 billion will be established for the period up to 2045 to support the storage of biochar produced by pyrolysis.
The land fund
Danmarks Grønne Arealfond (Denmark's Green Land Fund) is to cover activities worth approximately DKK 40 billion, including afforestation, taking low-lying agricultural land out of production and strategic land purchases.
Climate impact
The agreement is expected to reduce emissions by 1.8 million tonnes of CO2e in 2030, with the potential for up to 2.6 million tonnes, according to the fact sheet.
Frequently asked questions
When does the livestock tax take effect?
From 2030, according to the agreement.