Farmer Thomas Kjær is in no doubt what he thinks regarding the proposed CO2 taxes on Danish agriculture.
He doesn’t like them.
– It is a dangerous approach with taxes. It weakens competitiveness. Why must Danish agriculture be punished as the only ones in the world?, he asks.
Thomas Kjær runs a large farm near Vrå with pig production. He also has his own biogas and pyrolysis plant and sits on the board of Danish Crown.
He also has plans to expand both biogas and pyrolysis plants.
Experts recommend tax
On Wednesday, the so-called Svarer committee presented its long-awaited proposals on how to introduce CO2 taxes on Danish agriculture.
Denmark has a goal that agriculture must reduce its CO2 emissions by 70 percent in 2030 compared to what it emitted in 1990.
But in recent years, CO2 emissions have not been reduced in Danish agriculture, so action is necessary, several experts believe.
– If we do nothing until 2030, agriculture will actually account for almost half of Danish greenhouse gas emissions, says professor of environmental science at Aarhus University Mikael Skou Andersen.
Now economics professor Michael Svarer and the rest of his expert committee have lifted the veil on how agriculture can be taxed to achieve the Danish climate goals.
It is uncertain which model will be chosen. A final CO2 tax on agriculture must be negotiated by the government, agricultural organizations and green organizations.
The expert committee has three possible models.
The three models for CO2 tax
- The most far-reaching for farmers will be a tax of DKK 750 per tonne of emitted CO2. Here there will be no compensation from the state.
- In the intermediate model, the committee proposes a tax of DKK 375 per ton of emitted CO2.
- The last model the experts propose is a combination of several measures that should provide the CO2 reduction. The CO2 tax is proposed here at DKK 125 per tonne of CO2 emitted. But there will also be measures on afforestation, pyrolysis and extraction of low-lying soils.
Source: TV 2
What they have in common is that meat and milk are set to become more expensive.
Consumers can expect, among other things, that beef will rise to five kroner per 500 grams in the fridge.
Disaster for the profession
Thomas Kjær, who runs Vrejlev Møllegaard with both large-scale pig production and plant breeding, has not counted on how much increased expenses this will actually mean for him.
But he fears that consumers will opt out of Danish meat.
– It might be catastrophic for Danish agriculture. Consumers will go for cheaper foreign meat. Many farmers may be forced to stop, believes Thomas Kjær.
Danish Crown agrees with the interpretation.
– It will be a very big experiment. We risk doing both Danish competitiveness and the climate a disservice and liquidating thousands of Danish jobs in a food sector that is also among the most innovative in the world, believes Jais Valeur, CEO of Danish Crown.
Will invest less
Personally, Thomas Kjær expects that he himself will slow down the pace of investment.
This will happen because his stables will not be modernized at the same pace, and because his appetite for acquisitions will decrease. He believes that other farmers feel the same way.
Thomas Kjær believes that instead of taxes, agriculture should be allowed to develop out of the problem.
– We have already reduced the CO2 footprint compared to the 1990s. We can easily develop out of it, as we do with everything else, he says.
Dansk Erhverv is for taxes
The industry organization Dansk Erhverv does not agree with Thomas Kjær. Here it is believed that agriculture must be equated with the rest of business and therefore must have a greenhouse tax imposed.
And that the proceeds from the tax must be returned to the agricultural industry, so that, among other things, investments can be made in new climate-friendly technology.
– If agriculture, as the only sector, does not have to pay for its emissions, who will? It will not just be more expensive for all Danes, it will also weaken the competitiveness of the rest of business if the transport sector and the rest of business are taxed more to keep agriculture free. It is neither fair nor sensible, says Ulrich Bang, deputy director for energy and environment at Dansk Erhverv.
2024-02-21 12:37:54
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