Denmark Raises Diesel Fuel Tax to Fund Green Transition Spending

(Bloomberg) -- Denmark will spend about 5 billion kroner ($715 million) through 2030 on green transition of its agriculture sector and other environmental initiatives, which it will fund in part by a higher tax on fuel.

Most Read from Bloomberg

• Beyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROI

• Iran’s Attack on Israel Sparks Race to Avert a Full-Blown War

• Apple Faces Worst iPhone Slump Since Covid as Rivals Rise

• Israel Versus Iran — What All-Out War Could Look Like

• Tesla Executive Baglino Leaves as Musk Loses Another Top Deputy

A broad majority in the Danish parliament agreed to allocate funds to a range of green initiatives including subsidiaries for methane-reducing feed in the agricultural sector, promotion of plant-based food, reforestation, clean drinking water and green district heating, the government said on Monday.

The Nordic nation will raise its diesel fuel tax by 0.5 krone per liter ($0.27 per gallon) from 2025. The plan is expected to lead to a reduction of 0.3 million tons of CO2 in 2025, it said.

Most Read from Bloomberg Businessweek

• A Resilient Global Economy Masks Growing Debt and Inequality

• Top Takeaways From Businessweek’s Investigation of Teenage Sextortion

• How a Pioneering Blackjack Master Beats the Odds of Aging

• Race for AI Supremacy in Middle East Is Measured in Data Centers

• Cocoa’s Surge Is Drawing Africa’s Farmers Back to the Bean

©2024 Bloomberg L.P.