{"id":98977,"date":"2024-09-10T06:00:00","date_gmt":"2024-09-10T04:00:00","guid":{"rendered":"https:\/\/www.futuribles.com\/faut-il-taxer-lelevage-pour-reduire-son-impact-carbone\/"},"modified":"2024-10-24T15:59:44","modified_gmt":"2024-10-24T13:59:44","slug":"faut-il-taxer-lelevage-pour-reduire-son-impact-carbone","status":"publish","type":"post","link":"https:\/\/www.futuribles.com\/en\/faut-il-taxer-lelevage-pour-reduire-son-impact-carbone\/","title":{"rendered":"Should livestock farming be taxed to reduce its carbon impact?"},"content":{"rendered":"
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The agricultural sector is both one of the most affected by the impact of climate change and one of the main emitters of greenhouse gases (GHGs). To accelerate the reduction of emissions from livestock farming, Denmark is considering introducing a specific taxation system for the sector. The proposal, which still has to be passed by Parliament, would be a world first, but would raise questions about its applicability and impact on livestock farmers.<\/h6>\n\n\n<\/div>\n
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Denmark has set itself the target<\/a> of reducing its emissions by 70% by 2030 compared to 1990 levels, and becoming carbon neutral by 2050. However, a quarter of the country\u2019s greenhouse gas emissions come from agriculture<\/a>, making it the biggest emitter. Livestock farming alone accounts for 11%<\/a> of Denmark\u2019s greenhouse gas emissions, two-thirds of which are generated by cattle. It is estimated that there are 1.4 million cows in Denmark today, and that each of them emits at least two tonnes of CO2<\/sub> equivalent per year.[1]<\/a><\/sup>.<\/p>\n

If current trends continue, the agricultural sector could account for almost half of Denmark\u2019s emissions by 2030, since they are not decreasing, unlike those of the country\u2019s other sectors. Taxes have already been proposed for industry and the energy sector. The sector will therefore have to step up its mitigation efforts, and the proposed tax relies on coercion rather than proactive strategies.<\/p>\n

The bill follows an expert report<\/a> that considered three possible taxation models for the country\u2019s agriculture.[2]<\/a><\/sup> The first envisages a carbon tax of 750 kroner (around \u20ac100) per tonne by 2030, the same as for other economic sectors. By then, the tax could represent the equivalent of \u20ac100 per cow per year. This would enable the agricultural sector to halve its greenhouse gas emissions by 2030.<\/p>\n

In the second model, the tax would be half as high. In the third model, the tax would be only 125 crowns per tonne, a level considered too low by various experts<\/a> to have any significant impact. In all cases, the tax would be supplemented by subsidies to encourage action to reduce greenhouse gas emissions and preserve biodiversity, such as reforestation and the creation of wetlands. A budget of \u20ac500\u00a0million would be set aside to finance these subsidies.<\/p>\n\n <\/div>\n

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\n Voir aussi<\/span>\n
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\n \n \"\"<\/a>\n <\/span>\n \n On the French Population\u2019s Carbon Footprint<\/a>\n \n \n \n <\/use>\n<\/svg>\n <\/a>\n <\/span>\n
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26 February 2024<\/div>\n BOUTANG J\u00e9r\u00f4me<\/a>\n
\n 16 p.\n <\/div>\n <\/div>\n\n
\n \n \n <\/use>\n<\/svg>\n\n Journal Article\n <\/a>\n Environment<\/a>\n Society<\/a>\n <\/div>\n <\/div>\n<\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n
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Following this report, a bill has been drafted which takes up the first option and the associated subsidy mechanism. The tax system would apply to both cows and pigs, but as pigs emit much less CO2<\/sub>, the cost of the tax would be mechanically lower. Nevertheless, these amounts could be reduced by up to 60% thanks to the exemption mechanisms envisaged (mainly for technologies that reduce the sector\u2019s GHG emissions).<\/p>\n

The bill will be submitted to Parliament in the second half of 2024. However, its implementation could be hampered by difficulties of various kinds. For example, it is impossible to measure the greenhouse gas emissions of a farm or livestock farm directly. If implemented, taxation will therefore be based on estimates based on the number of animals declared.<\/p>\n

The draft law has also been criticised by Danish associations<\/a>, who regret that the system is in addition to those already in place at European level, which risks increasing the workload and administrative complexity for operators.<\/p>\n

What\u2019s more, this bill comes against a backdrop of rapid decline in the number of farmers in the country: down 42% in 12 years. The same associations therefore fear that the law will add a further financial burden to the most fragile farms, mainly the smallest. They also fear<\/a> that the conditions of access to subsidies will favour large farms, the only ones with the means to invest in eligible solutions, mainly expensive technologies. A study by the Danish Council for Climate Change<\/a> published in 2023 concluded that with the introduction of a tax of 750 kroner per tonne of CO2<\/sub>, the number of farmers in deficit could rise from 25% to 45%.<\/p>\n

Finally, the scale of the planned tax reduction mechanisms could, according to these associations, prevent the scheme from being truly effective.<\/p>\n\n <\/div>\n

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\n Voir aussi<\/span>\n
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\n \n \"\"<\/a>\n <\/span>\n \n China\/EU trade tensions over electric vehicle imports<\/a>\n \n \n \n <\/use>\n<\/svg>\n <\/a>\n <\/span>\n
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4 July 2024<\/div>\n LE BEC Antoine<\/a>\n
\n 7 min.\n <\/div>\n <\/div>\n\n
\n \n \n <\/use>\n<\/svg>\n\n Newswatch\n <\/a>\n Economics<\/a>\n Geopolitics<\/a>\n <\/div>\n <\/div>\n<\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n
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At the same time, other countries are considering or have considered specific tax measures for the agricultural sector. New Zealand, for example,<\/a> where dairy products account for a quarter of exports, had also considered taxing cow and sheep farms. However, the bill was finally withdrawn in the face of an outcry from farmers, and the government has decided to exclude agriculture from the taxation mechanism it wishes to introduce to reduce the country\u2019s emissions.<\/p>\n

In France, as part of the 2024 budget<\/a>, two restrictive measures for the agricultural sector were envisaged, but ultimately abandoned. Firstly, a 20% increase in the tax on the sale of pesticides, which would have financed the Water Plan and water treatment programmes. Secondly, an increase in the charge for water abstraction by irrigating farmers.<\/p>\n

Finally, the European Commission is considering setting up a carbon market for the agricultural sector, along the lines of those that already exist in other sectors. A provisional agreement was reached in February, providing for a remuneration mechanism for farmers who implement practices to reduce or offset GHG emissions. However, the scheme would be voluntary, whereas only a mandatory scheme could be truly effective<\/a>. Extending taxation to all European farmers would reduce the distortion of competition between the Danes and their colleagues in other countries.<\/p>\n

The agricultural sector will probably not escape the taxation mechanisms already adopted in other sectors, which are based on a logic of equalisation (discouraging behaviour deemed harmful and financing others). Various mechanisms for taxing synthetic nitrogen fertilisers are also being considered at European level<\/a>. However, given the sector\u2019s specific characteristics and vulnerabilities, these measures will necessarily have to be progressive and systemic, in order to take account of objectives such as maintaining small farms and promoting practices with a low environmental impact. Finally, measures aimed at the agricultural sector could go beyond taxation and also rely on coercion. One example is the Netherlands, which is <\/a>trying to introduce livestock quotas, although these are proving difficult to implement.<\/p>\n\n <\/div>\n

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\n Voir aussi<\/span>\n
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\n \n \"\"<\/a>\n <\/span>\n \n CO2 Emissions in 2023<\/a>\n \n \n \n <\/use>\n<\/svg>\n <\/a>\n <\/span>\n
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22 April 2024<\/div>\n PAPON Pierre<\/a>\n
\n 4 min.\n <\/div>\n <\/div>\n\n
\n \n \n <\/use>\n<\/svg>\n\n Read, Seen, Heard\n <\/a>\n Economics<\/a>\n Environment<\/a>\n <\/div>\n <\/div>\n<\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n
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N.B.: this article has been translated from French by DeepL, and revised by the author and Futuribles.<\/span><\/em><\/p>\n\n\n

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  1. \n

    Estimates can vary widely depending on the type of cow (dairy or suckler), their feed etc. See Les March\u00e9s des produits laitiers, carn\u00e9s et avicoles. Bilan 2023. Perspectives 2024<\/a><\/em>, France Agrimer, 2024; \u201cDanish Livestock Farmers to Be Taxed for Cow and Pig-made Greenhouse Gases<\/a>\u201d, EuroNews<\/em>, 26 June 2024; \u201cLa vache et le pot d\u2019\u00e9chappement<\/a>\u201d, Sesame<\/em>, 27 September 2023. \u2191<\/a><\/p>\n<\/li>\n

  2. \n

    Hunter<\/span> Lena, \u201cFirst Legislation of its Kind: Denmark\u2019s Agriculture Tax Sparks Fierce Debate<\/a>\u201d, CPH Post, <\/em>25 February 2024. \u2191<\/a><\/p>\n<\/li>\n<\/ol><\/div>","protected":false},"excerpt":{"rendered":"

    The agricultural sector is both one of the most affected by the impact of climate change and one of the main emitters of greenhouse gases (GHGs). To accelerate the reduction of emissions from livestock farming, Denmark is considering introducing a specific taxation system for the sector. The proposal, which still has to be passed by … Continued<\/a><\/p>\n","protected":false},"author":12,"featured_media":97368,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"none","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"both","_seopress_redirections_param":"","_seopress_redirections_type":301,"_seopress_analysis_target_kw":"","footnotes":""},"categories":[132],"tags":[133,202],"keyword":[1307,2530,1211,1251,2531,1171,1164],"class_list":["post-98977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-vigie-alimentation-en","tag-economie-et-emploi-en","tag-environnement-en","keyword-agroeconomie-en","keyword-production-animale-en","keyword-danemark-en","keyword-transition-en","keyword-agriculteurs-en","keyword-politique-fiscale-en","keyword-fiscalite-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/posts\/98977","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/comments?post=98977"}],"version-history":[{"count":5,"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/posts\/98977\/revisions"}],"predecessor-version":[{"id":98984,"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/posts\/98977\/revisions\/98984"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/media\/97368"}],"wp:attachment":[{"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/media?parent=98977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/categories?post=98977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/tags?post=98977"},{"taxonomy":"keyword","embeddable":true,"href":"https:\/\/www.futuribles.com\/en\/wp-json\/wp\/v2\/keyword?post=98977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}