Denmark made headlines in 2024 as the first country to implement a carbon tax on livestock emissions. The country's ambitious 70% emissions reduction target by 2030 includes agricultural reductions of 55-65%. What makes Denmark's policy truly remarkable isn't the tax itself—it's the 60% tax deduction corresponding to mitigation potential. This signals that Denmark's approach isn't anti-livestock, but rather pro-innovation, explicitly avoiding targets on livestock numbers while incentivizing farmers to adopt technologies and practices that can reduce emissions by up to 40%.
The impact of Denmark's inclusive policy-making approach through the tripartite agreement cannot be understated. Ministers, farmer representatives, nature organizations, labor unions, and industry came together to craft comprehensive solutions extending far beyond livestock taxation—encompassing voluntary land reform with full compensation, significant afforestation efforts, biodiversity enhancement, and water protection.
Today we are joined by Tobias Gräs, Head of Policy at the Danish Agriculture and Food Council, where he coordinates climate action through the World Farmers' Organization and represents Danish farmers and major European cooperative businesses in Brussels. Fresh from COP 30 in Belém, Brazil, Gräs brings insights from Denmark's pioneering policy implementation and an ambitious $50 million Green Climate Fund project transforming dairy production in Kenya's Lake Victoria region.
The Tunza GCF project demonstrates how Denmark's cooperative model can drive change across vastly different contexts. Partnering with FAO and the Green Climate Fund, this five-year initiative received $50 million in funding in 2025. with an additional $10 million loan component from Kenyan banks.
The project targets 130 agricultural cooperatives representing 80,000 farmers across six value chains in Kenya's Lake Victoria region: dairy, coffee, tea, poultry, African leafy vegetables, and fruit trees. Kenyan dairy cows in the Lake Victoria region average just three liters per day—with potential to reach seven liters through improved feed and management practices. The project aims to achieve 1.2 million tons of greenhouse gas emission savings by 2030 and 4.3 million tons by 2045.
The project's success relies on how farmer-owned cooperatives returning value to farmers through dividends and the provision of technical assistance to cooperatives on climate-efficient practices across value chains.
As Denmark prepares to scale its domestic climate policies while simultaneously supporting Kenya's transformation through the Tunza project, we welcome Tobias Gräs to discuss the successes and challenges of translating ambitious climate targets into practical action across radically different farming systems.
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