Denmark pushes ahead with agri-carbon tax plans despite nearing the 2030 climate target

6 months ago 23

The Danish government is pressing ahead with plans to introduce a carbon tax on agriculture despite the Danish Climate Ministry’s annual report showing that the country is on track to meet its 2030 target of reducing greenhouse gas emissions by 70% compared to 1990 levels.

According to the ministry’s report, the country’s CO2 emissions would be reduced by 68% based on current policies and initiatives, meaning it would not take much to reach the expected 70% target.

While it was estimated that Denmark would need to reduce emissions by around 5.4 million tonnes of CO2 to reach its 2030 target last year, this year, the estimate has shrunk to 1.5 million tonnes.

“We are well on the way to the 2030 target. The CO2 reductions result from ambitious agreements, broad political co-responsibility for climate action, and continuously improving knowledge about emissions,” Climate Minister Lars Aagaard told the press on Tuesday.

The report – which cites better knowledge of how much CO2 is absorbed by trees in the country’s forests as a factor – has been welcomed by many in the agricultural sector who have long criticised a CO2 tax on agriculture currently being discussed by the government, and that aims to reduce greenhouse gas emissions, particularly methane and nitrous oxide.

Even with positive projections, the government continues to pursue its plan to introduce a carbon tax in the agricultural sector.

“The fact that we have a better understanding of forests, for example, is clearly positive. However, this does not change the fact that agriculture will still account for almost half of Denmark’s emissions in 2030,” Aagaard said.

“Therefore, we must have a carbon tax on agriculture to meet the 2030 target,” he continued, adding that the green transition will not stop in 2030 and that Denmark must continue to make the necessary decisions to combat the climate crisis.

However, the government’s push is not to the liking of everyone, with Hjørring‘s Liberal Mayor Søren Smalbro (Renew Europe) saying the report shows that the sector has come further than expected and that the idea of a CO2 tax is not a foregone conclusion.

“If you’re in a different place than you thought when you started talking about a CO2 tax, then you should definitely reconsider it,” he told the press on Tuesday.

“It’s clear that if you meet the targets, then a carbon tax on top of that would be a real headache. It makes no sense”, he added.

The ministry also pointed out that the projection is an estimate and that there are a number of uncertainties when looking so far into the future, including unforeseen developments in prices, behaviour and technology, as well as fluctuations in the weather.

(Charles Szumski | Euractiv.com)