The HP3 workstream held a webinar on 3 December 2024 around “Denmark’s Green Tripartite Agreement – introducing tax on Greenhouse Gases from Agriculture”.

Mads Dalum Libergren and Jeppe Leo Rasmussen from the Danish Ministry of Finance gave an overview of the agreement reached in June 2024 by the Danish government on the world’s first tax on GHG emissions from livestock, together with mitigating measures, and explained the role that the Ministry of Finance had played to support political negotiations. They emphasized the importance for Denmark of reducing agricultural GHG emissions to reach climate neutrality in 2050, the political economy of a reform process that started in 2020, and the way that the GreenREFORM model was designed to support negotiations in real time by analyzing the impact of policy packages. They illustrated the model’s outcomes with the simulated impact of several reform scenarios, including on GHG emissions, the agricultural sector, tax revenue, and employment.

Participants discussed, among other points, the modelling approach that was used, the policy measures included in the reform packages, and the political economy of the reform.

Read the report of the Expert Group for a Green Tax Reform here.