Denmark should introduce a carbon tax on farmers to meet its national climate goal and European Union commitments, a government-commissioned advisory group said, according to Bloomberg.

The group on Feb. 21 told the Danish government to tax agricultural production by as much as 750 kroner ($109) per mt of emitted CO2-equivalent. It also recommended initiatives to help the industry lower its emissions, including afforestation and the use of new technology such as pyrolysis.

The measures will cut emissions by 2.4-3.2 million mt of CO2 once fully phased in by the year 2030, depending on the taxation model adopted by lawmakers, according to a statement released via the government. It will help the Nordic nation reach its target to reduce emissions from agriculture, one of Denmark’s biggest emitters, by 55-65% by 2030 compared with 1990 levels.

A broad majority in parliament in 2022 agreed to implement a tax of as much as 750 kroner per mt of CO2 on Danish industrial companies by 2030, while awaiting the group’s assessment of taxation models for agriculture’s non-energy-related emissions. The group also assessed the possibility of placing a CO2 tax on food but concluded that taxing production is a “more targeted and cost-effective” means of meeting Denmark’s climate goals.