World’s first carbon tax on livestock will cost farmers $100 per cow

London CNN — Dairy farmers in Denmark face having to pay an annual tax of 672 krone ($96) per cow for the planet-heating emissions they generate.

The country’s coalition government agreed this week to introduce the world’s first carbon emissions tax on agriculture. It will mean new levies on livestock starting in 2030.

Denmark is a major dairy and pork exporter, and agriculture is the country’s biggest source of emissions. The coalition agreement — which also entails investing 40 billion krone ($3.7 billion) in measures such as reforestation and establishing wetlands — is aimed at helping the country meet its climate goals.

“With today’s agreement, we are investing billions in the biggest transformation of the Danish landscape in recent times,” Foreign Minister Lars Lokke Rasmussen said in a statement Tuesday. “At the same time, we will be the first country in the world with a (carbon) tax on agriculture.”