46 PERSPECTIVES ON BUSINESS AND ECONOMICS | VOL 41 | 2023 Denmark’s path toward carbon-neutral agriculture Asgar Bin Ali Denmark’s agricultural sector plays a significant role in greenhouse gas emissions, but effective strategies can be used to achieve carbon neutrality. This article examines four proposals to decrease agricultural greenhouse gas emissions: transitioning to plant-based food production, harnessing the benefits of the digital revolution in agriculture, using biogas from waste to lessen reliance on petroleum products, and implementing a carbon tax on agricultural production and land use. Introduction Denmark has set an ambitious goal of attaining carbon-neutral agriculture by 2050. Compared to the rest of the world, Denmark’s approach to meeting this goal is notable for its comprehensive and multipronged approach. While many countries have made commitments to reducing greenhouse gas (GHG) emissions from agriculture, few have set such determined targets and taken proactive measures to achieve them. Denmark’s focus on reducing emissions from livestock farming is particularly noteworthy, as this sector accounts for approximately 20% of the country’s total GHG emissions, making it a crucial area for reducing the country’s carbon footprint (Batini et al., 2020). To do so, Denmark has put into action a range of initiatives, with incentives for farmers to adopt renewable energy sources and reduce their use of fertilizers and pesticides as well as supporting the development of new technologies for reducing emissions from livestock. By investing in sustainable practices, Denmark has been able to make significant early progress toward its carbon-neutral agriculture goals. That said, there are some additional, tangible steps that can lead Denmark to ultimately reach its goal of GHG reduction in this sector. I discuss four approaches that have the potential to realistically further decrease agricultural GHG emissions within the next decade or so: 1) transitioning from animal-based to plant-based food production, 2) harnessing the benefits of the digital revolution in Denmark’s agricultural industry, 3) using biogas from waste to lessen reliance on petroleum products, and 4) enacting a carbon tax on agricultural production and land use. As the world faces the urgent challenge of climate change, Denmark’s commitment to carbon-neutral agriculture is a powerful example of what is possible when a country is willing to take bold action to protect the planet. Background Sustainability is a pillar of the Danish social fabric, and it plays a critical role in the economy of the country. From the push for electric vehicles in the transportation sector to the replacement of resource-intensive, nonrenewable energy with renewables, sustainability has been a major tenet of the Danish worldview. Denmark’s goal to be a net zero GHG emission country by 2050 has resulted in regulations on heavy producers of GHGs. These include the imposition of carbon taxes on the energy and transport sectors, two of the largest contributors to GHG emissions. Notably, Denmark was one of the first nations to enact a carbon tax, in 1992 (Batini et al., 2020). However, there are still areas where GHG emissions can be lowered in Denmark, particularly in the agriculture sector. The Danish agricultural sector has a long history and plays a significant role in the country’s economy. Agriculture is one of the oldest and most traditional industries in Denmark and today remains an important source of employment and income for many rural and urban communities where the processing, distribution, marketing, and sales of agricultural products often take place. With a focus on sustainable practices and innovation, the Danish agricultural sector has become a world leader in modern farming methods, specifically in the areas of food safety, animal welfare, and environmental sustainability. However, the sector also faces significant challenges, particularly with respect to reducing GHG emissions and adapting to the impacts of climate change. Nonetheless, agriculture remains a vehicle through which a large amount of GHG emissions can be reduced in Denmark. The agricultural sector has a considerable impact on the climate performance of Denmark. Each year, the Danish agricultural sector produces roughly 17.4
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