The government is facing the challenge of finding 30 billion kroner for a “historic” agreement and hopes for broad support from the other parties in the Danish Parliament (Folketinget) to not change it. The agreement was reached on Monday evening as a tripartite agreement between the government and various organizations but still lacks financing. The fund of 40 billion kroner is intended for activities such as planting 250,000 hectares of forest and extracting 140,000 hectares of low-lying land, but the agreement itself does not mention where the money will come from.
The Ministry of Finance has announced that the government will present financing proposals when the parties in the Parliament negotiate the agreement. A political majority is required for both legislation and financing of the initiatives, and since the government no longer has a domestic political majority, at least one party or member of the Parliament must support the proposal. Several members of the government refer to the agreement as “historic” and seek broad support to ensure its longevity. Foreign Minister Lars Løkke Rasmussen warned that the agreement could fall apart if the parties begin negotiating it.
He expressed hope that the Parliament recognizes the consensus that has been reached between the Society for Conservation (Naturfredningsforeningen) and Agriculture & Food (Landbrug & Fødevarer). Some parties, including the Socialist People’s Party (SF), the Social Liberal Party (De Radikale), the Conservative People’s Party (De Konservative), and the Liberal Alliance, have already expressed a desire for real negotiations. According to the agreement, agriculture will pay 300 kroner per ton of CO2 tax starting from 2030, a tax that will increase to 750 kroner per ton in 2035. However, there is a possibility of deductions if farms can transition. The agreement is not yet politically binding and must be approved by the Parliament, with negotiations expected to begin after the summer break. Novo Nordisk Foundation has already pledged to contribute ten billion kroner to the fund.