Carbon tax on Danish pig production
From 2030, Danish farmers will have to pay a tax on carbon emissions from Danish agriculture.
Pig production in Denmark is already well ahead in terms of implementing new technologies that benefit the climate.
The Danish government is to introduce a carbon tax on Danish agriculture. This means that Danish pig producers are required to implement climate action measures on their farms if they are to reduce or avoid paying the new tax.
The climate technologies available to Danish farms include flare burning of air from tent-covered slurry tanks, a wire-type barn cleaner system, manure discharge every seven days, manure cooling, manure acidification and using a manure-to-biogas plant.
Optimising feed to make it more sustainable is another option.
Frequent slurry discharge - a legal requirement
From 1 May 2023, it became a legal requirement to empty finisher units of all manure on a regular basis. New housing units for sows and piglets built after this date will also be subject to the same legal requirement.
If manure is emptied at least every seven days, methane production is reduced to a level equivalent to 45-50 per cent.
As methane’s climate impact is 28 times greater than CO2, it is imperative that Danish pig producers reduce methane emissions to avoid the new tax. The new technologies are an important tool in this respect.
Basic deduction
To cushion the tax impact, a basic deduction of 60 per cent will be introduced. By introducing the various technologies listed above, Danish pig producers can avoid paying the tax, which is DKK 300 per tonne of CO2 equivalent, rising to DKK 750 in 2035. Pig producers have the opportunity to invest and implement the new technologies during the transition period.