To achieve climate neutrality in agriculture, robust economic measures such as taxation and targeted expropriation must be employed. The newly established Ministry dedicated to the Green Tripartite Agreement underscores its commitment to combatting CO2 emissions. Agriculture is pivotal in realizing the Government's ambitious goal of reducing CO2 emissions by 70% by 2030.
The green tripartite agreement on the transformation of agriculture was signed just before the 2024 summer holidays. To ensure that it becomes a reality, the Government has set up the new Ministry for the Green Tripartite in connection with a cabinet reshuffle at the end of August.
This puts maximum pressure on the Government to deliver concrete results from the historic agreement reached between the Government, Local Government Denmark, the Confederation of Danish Industries, the Danish Metalworkers' Federation, the Danish Agriculture & Food Council, the Danish Society for Nature Conservation, Danish Industry and the Danish Food Federation, NNF.
Great ambitions for the green transition
The result of the negotiations was a 43-page long, technically complex, but at the same time very concrete document that introduces concepts such as set-aside consultant and watershed steering committees. The ambitions are high, and a comprehensive conversion of land across the country is planned.
The agreement will ensure that Denmark can realise the 2030 climate target of a 70 % CO2 reduction. This includes reducing greenhouse gas emissions from the food and agriculture sector and creating better conditions for nature, biodiversity, the aquatic environment and drinking water.
The extensive conversion of agricultural land must be realised with more sustainable, high-tech and land-efficient agriculture. At the same time, it must be a balanced transformation that takes into account competitiveness and good jobs throughout the country.
Upskilling employees in the agricultural sector is part of the plan, which is considered an important part of succeeding with such a major transition. Ambitions must follow reality, and it is part of the balanced approach that Denmark must continue to be a food-producing nation, only more efficient.
The Danish Green Area Fund
Naturally, organizing the Green Tripartite Agreement is a huge task, but there have also been previous initiatives that can be built upon.
DKK 40 billion will be allocated to the existing Danish Green Area Fund. This boost will be used to create 250,000 hectares of forest. In addition, 140,000 hectares of carbon-rich lowland soils, including marginal areas, corresponding to an area the size of Lolland Falster and Bornholm combined, will be set aside. The goal is at least 20 % protected nature.
The agreement emphasises that the processes to achieve these goals are carefully organised and anchored locally. Certain municipalities may be granted the right of first refusal in special situations where they have the expertise to handle the task. This is to ensure local anchoring.
The CO2e tax
One of the new initiatives is the so-called CO2e tax. This is a special tax that will be imposed on livestock and fields, i.e. the biological processes that generate greenhouse gas emissions, as opposed to fossil fuels. The goal is to reduce greenhouse gas emissions by 1.8 million tonnes of CO2e by 2030. It is also estimated that there is a potential of up to 2.6 million tonnes of reduction.
The tax is phased in linearly from DKK 300 per tonne CO2e in 2030 to DKK 750 per tonne in 2035. If a farmer can stay within the basic deduction of 60 per cent of average emissions from the given type of animal, they will avoid the tax.
The revenue from the livestock tax in 2030-2031 will be reversed to support the industry's green transition, and the handling of the revenue will be reassessed in 2032.
The role of municipalities: Watershed steering committees
As part of the local anchoring of the conversion effort, a new organisation will facilitate local planning and implementation of land conversion. For this purpose, so-called watershed steering committees have been created, which will be chaired by municipalities and be responsible for secretariat, progress and meeting deadlines.
Nature and agricultural organisations, the Danish Nature Agency and the set-aside consultants will also participate. They are tasked with drawing up a conversion plan by 2025 at the latest, with goals to be achieved by December 2027. Compensation for the conversion efforts will be agreed between Local Government Denmark and the Government.
In other words, the new initiatives to ensure the realisation of the green tripartite agreement are already underway.