When it comes to climate action, Denmark has rarely been content to sit on the sidelines. Now, the small Nordic nation is taking another pioneering leap — becoming the first country in the world to implement a carbon tax on livestock emissions, set to begin in 2030.

During a CLEAR Conversations podcast, which was filmed at the 2025 State of the Science Summit held at UC Davis, Anna Trillingsgaard from the Embassy of Denmark shared how this ambitious plan came to be and what it means for farmers, the environment, and the global agricultural community who is watching closely.

“Sixty percent of Danish land is used for agriculture,” Trillingsgaard explained. “And about two-thirds of that is used for producing animal feed. So, agriculture is everywhere — it’s very visible.” 

That agricultural footprint supports one of the world’s most productive livestock sectors. The country’s population hovers around five million people — but it’s home to more than 30 million pigs. In short, Denmark is a small country with a big agricultural presence, and that makes the climate question particularly urgent.

Trillingsgaard explained that Denmark’s road to a livestock carbon tax began in 2019, when the Danish Parliament passed a sweeping climate law committing the country to reduce greenhouse gas emissions by 70 percent by 2030, compared to 1990 levels. Two years later, lawmakers sharpened their focus further — setting a goal to cut agricultural emissions by 55 to 65 percent within the same timeframe.

“That really set the framework,” Trillingsgaard said. “It was a call to action — and it made clear that every sector, including agriculture, had to be part of the solution.”

From that foundation came last year’s historic agreement to establish a tax on methane and other emissions from livestock. But unlike many taxes that simply extract revenue, this one is designed to reinvest directly back into the agricultural sector.

“The most important thing about this tax,” she emphasized, “is that it’s not about taking money away from farmers. The revenue will be funneled back into the sector — into research, new technologies, and tools farmers need to reduce emissions.”

The tax is expected to start in 2030 and was structured with farmers in mind. Built-in deductions will ensure producers aren’t driven out of business as the policy rolls out.

“It’s about giving farmers time to prepare,” Trillingsgaard explained. “We’re already moving on new solutions now, like feed additives, to make it easier for producers to meet targets when the tax begins.”

That focus on innovation and collaboration was critical to gaining broad support — even from the very farmers who will be affected most directly.

“Agriculture in Denmark is very engaged,” she said. “Producers know they have to adapt, and they were part of the negotiation process from the beginning — along with trade unions, municipalities, and environmental groups.”

The result is what she calls “the best possible outcome” — a model that reflects compromise, inclusion, and shared ownership of the solution.

Denmark’s “Green Denmark” agreement, of which the livestock tax is a major piece, also includes funding for wetland restoration, reforestation, and biodiversity projects, as well as support for farmers transitioning land out of production. New programs like a biochar subsidy scheme are also being implemented. These subsidies will reward farmers for sequestering carbon in soils by using biochar. This helps the agricultural sector reduce emissions and improve soil health.

Because the plan spans multiple sectors and ministries, Denmark has even created a dedicated ministry to oversee its implementation — an acknowledgment of the complexity and urgency of the task ahead.

While Denmark’s size makes it uniquely suited to pilot such a system, Trillingsgaard believes the real takeaway isn’t the specific policy — it’s the process.

“The most important lesson is the collaborative model that made it happen,” she said. “It’s about getting the framework set where you can actually create the right discussions, and you can create a foundation for mutual understanding and find a common ground.”

As the first country to take on livestock emissions this way, Denmark knows the world will be watching — with curiosity, and maybe a touch of skepticism.

“People say, ‘Good luck!’” Trillingsgaard said with a smile. “It’s exciting, but yes, it’s also a little scary. But we hope this can inspire others — with the inclusiveness and bringing stakeholders together.”