Climate tax on Danish agriculture: The green tripartite negotiations between the government, Landbrug & Fødevarer (farmers interest association) and Danmarks Naturfredningsforening (Nature’s interest association) have ended with the following compromise – a climate tax of 120 DKK per CO2 ton from 2030, which will further increase to 300 DKK from 2035.
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We are the first country in the world to introduce a climate tax on agriculture.
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To compare, the industry will pay a climate tax of 750 DKK per CO2 ton from 2030.
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It is expected that the climate tax will deliver a reduction of 1.8 million tons of CO2 in 2030.
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Together with the climate tax, it was agreed to invest 40 billion DKK to establish 390,000 hectares of forest and other nature by 2045. This means the forest area will increase by 40%, while 15% of agricultural land will be decommissioned.
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Landowners will receive 75,000 DKK in subsidies for each hectare of land converted to forest, with a bonus of 15,000 DKK per hectare for virgin forest (untouched by human intervention).
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The average land price has risen from 148,000 DKK per hectare (2018) to over 200,000 DKK per hectare (2024). It will thus be a difficult challenge to convince farmers to renounce 390,000 hectares of land.
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The agreement is expected to become law in the autumn. Usually, when a tripartite agreement is found, there is no further negotiation in Parliament. However, in a break with tradition, SF (Socialists), Radikale Venstre (Social Liberals), Konservative (Conservatives) and Enhedslisten (Red-Green Alliance) are planning to push for an even higher climate tax.
Job centers may be closed: An expert committee established by the government to identify ways to save three billion DKK annually on employment efforts in the municipalities has released a 200-page report. It proposes 6 main recommendations to reform employment support services.
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Fewer rules for the unemployed and people on sick leave.
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More individual-based support for the unemployed.
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Removal of 90% of the current sanctions.
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Closure of job centers.
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Bigger role for a-kasse institutions and private suppliers.
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The unemployed will be able to choose a private company that will help them with their job search efforts.
