The government is nearing an agreement on a CO2 tax for agriculture. After several years of work, the government and a number of industry organizations are close to presenting a long-awaited agreement on a CO2 tax for agriculture. According to a press release from the Ministry of Economics, the agreement will be announced “soon.”
A press conference has been called at the Ministry of Economics, where the chairman of the green tripartite, former minister Henrik Dam Kristensen, and Minister of Economics Stephanie Lose (V) will present the agreement. Also present at the presentation will be the Minister of Foreign Affairs Lars Løkke Rasmussen (M), Minister of Environment Magnus Heunicke (S), Minister of Taxation Jeppe Bruus (S), and Minister for Food, Agriculture, and Fisheries Jacob Jensen (V).
The green tripartite includes organizations such as Agriculture & Food, the Danish Society for Nature Conservation, the Food Workers Union, Danish Metal, the Confederation of Danish Industry, and the Association of Local Authorities (KL).
The agreement is the culmination of a long process on CO2 taxes. Already in December 2020, the Parliament passed a green tax reform that entrusted the formulation of specific CO2 taxes to an expert panel consisting of prominent economists. This led to the adoption of a CO2 tax of 750 Danish kroner per ton of CO2 for the industry in the summer of 2022.
However, the tax on agricultural emissions has been repeatedly postponed. The expert panel has needed extra time, and the establishment of the green tripartite in 2023 has further extended the process. The green tripartite was established taking inspiration from the three-party negotiations in the labor market as an attempt by Venstre (The Liberal Party) to find a common solution to the disagreements on agricultural climate regulation.
Although the green tripartite reaches an agreement on a deal, it still needs to be presented and ratified by the Parliament. This is expected to happen after the summer break when the Parliament resumes legislative proceedings.