Economy
November 24, 2024
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Denmark to Restore 15% of Farmland to Natural Habitats

Denmark is undertaking an ambitious initiative to transform 15% of its farmland into forests and peatlands. This effort, part of the country's broader climate goals, includes planting one billion trees and reducing emissions from agriculture by shifting land use and implementing new policies like livestock taxes.
Denmark to Restore 15% of Farmland to Natural Habitats
Martin Bisof - Unsplash

Denmark is set to repurpose a significant portion of its agricultural land as part of its effort to combat climate change. Farmers growing crops such as hay for animal feed will soon receive government incentives to convert their fields into forests. Other areas will be reverted to peatlands, contributing to the restoration of around 10% of Denmark’s land back to nature.

This initiative is a central element of Denmark’s strategy to significantly lower emissions from farming, a sector known for its high carbon footprint. Alongside the land restoration, a new tax targeting livestock emissions aims to reduce the production of meat and dairy. Additionally, farm subsidies will be redirected to encourage reduced use of nitrogen-based fertilizers.

Denmark’s approach is currently unmatched globally in its scale and commitment to addressing agricultural emissions, which contribute roughly a quarter of the world’s greenhouse gases. “This seems to be the first serious plan anyone has agreed to with real money and real teeth to reduce agricultural emissions,” said Tim Searchinger, a senior researcher at Princeton and the World Resources Institute.

With a national target to cut emissions by 70% by 2030 compared to 1990 levels, Denmark has shown strong political resolve to achieve its goals. “Political agreements here tend to persist even across election cycles, allowing for long-term planning,” explained Torsten Hasforth, chief economist at Concito, a Copenhagen-based think tank.

Agriculture presents a distinct challenge in Denmark’s climate strategy. While sectors like energy have clear, cost-effective solutions such as wind and solar power, farming has received less focus and requires more complex interventions. Denmark has already made strides in other areas, including widespread adoption of cycling, new taxes on air travel to promote trains, and investments in sustainable energy technologies like large-scale heat pumps.

Agriculture’s share of Denmark’s total emissions is expected to rise as the country continues to reduce emissions in other areas. “Farming could soon account for 50-75% of emissions in Denmark, even though it only makes up about 1% of GDP,” noted Searchinger.

The new livestock tax, which applies to emissions above a set threshold, is designed to incentivize more efficient production of meat and dairy. Consequently, the cost of products such as milk is likely to increase, potentially prompting consumers to opt for plant-based alternatives. While there is a risk of increased imports, Danish consumers’ preference for local goods may mitigate this effect.

Denmark’s farmland restoration plan will affect approximately 15% of the country’s 2.6 million hectares of agricultural land. Most of this land is currently used to grow animal feed, not food for direct human consumption. Transitioning portions of farmland back to natural habitats is also expected to reduce the need for fertilizers, another major emissions source.

While there is concern about the potential for increased imports of crops like soybeans from regions with less stringent environmental policies, experts praise Denmark’s plan for its focus on long-term carbon storage through restored forests and peatlands. “This initiative prioritizes tangible, lasting ways to capture carbon,” said Searchinger.

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