The Danish government, along with the green tripartite parties, has established a groundbreaking long-term plan for the transformation of Denmark's land use and the food and agriculture sector. The Agreement for a Greener Denmark is designed to significantly cut greenhouse gas emissions from these sectors, aiding Denmark in achieving its climate objectives for 2030, while also enhancing conditions for nature, biodiversity, water bodies and drinking water. The agreement outlines a substantial shift in land use and introduces a CO2 equivalent (CO2e)-emission tax on livestock emissions, charting a path towards a sustainable, technologically advanced, and efficient agricultural industry.

Key components of the agreement are:

• Implementing a CO2e-emission tax on livestock emissions, starting at 300 Danish krone (DKK 300) per ton of CO2e in 2030, escalating to DKK 750 per ton of CO2e by 2035, inclusive of a 60% standard deduction to mitigate production expenses
• Introducing a CO2e excise tax of DKK 750 for the application of agricultural lime
• Allocating more than DKK 30b to retire approximately 140,000 hectares of carbon-intensive peatlands and to create 250,000 hectares of new forests
• Establishing a subsidy program exceeding DKK 10b through 2045 for the sequestration of biochar generated via pyrolysis
• Pledging to expedite the progression and refinement of novel climate technologies and measures, with verifiable reduction impacts to be accounted for in the national emissions ledger

These measures are projected to diminish Denmark's emissions by 1.8m tons of CO2e by 2030, thereby narrowing the distance to the 2030 climate target.

Additionally, the agreement inaugurates the Danish Green Land Fund, with initiatives totaling approximately DKK 40b, encompassing reforestation, peatland reclamation, strategic land acquisitions and nitrogen abatement. The fund's endeavors will benefit from robust community engagement, stewardship and integrated strategies, with municipalities playing a pivotal role in the planning and execution phases.

Moreover, the agreement delineates strategies and principles for complying with the EU's Water Framework Directive, with the objective of restoring Danish coastal waters to a favorable ecological status. This marks a significant shift in nitrogen management, harmonizing regulations with concerted land conversion, supported transitions and contemporary land stewardship.

The agreement is set to reshape the Danish landscape for generations, prompting a comprehensive reassessment of land management practices in Denmark.

Highlights of the Agreement for a Greener Denmark include:

• A reduction in greenhouse gas emissions by 1.8m tons of CO2e by 2030, with the potential to reach up to 2.6m tons
• A CO2e excise tax on livestock emissions, with an effective rate of DKK 120 per ton in 2030, increasing to DKK 300 per ton by 2035
• Redistribution of proceeds from the livestock excise tax during 2030-31 as a transitional support fund to facilitate the sector's ecological transformation, with a reassessment of revenue allocation set for 2032
• The creation of the Danish Green Land Fund, with a budget of approximately DKK 40b
• The afforestation of 250,000 hectares and the reclamation of 140,000 hectares of carbon-dense peatlands
• An objective to protect at least 20% of natural habitats, with substantial expansions through various projects
• A subsidy program for the storage of biochar produced through pyrolysis
• A revolutionary change in nitrogen regulation, positioning land conversion as the central mechanism to fulfill the EU Water Framework Directive's objectives
• Various fee reductions for slaughterhouses amounting to DKK 45m annually, starting in 2029
• The establishment of a public fund totaling DKK 100m for the period from 2027 to 2030, dedicated to the professional development of workers in agriculture and related fields