The Danish government has allocated DKK 163.8 million to support the horticulture industry as it faces the introduction of a CO2 tax. The economic support scheme, agreed upon by Minister for Food, Agriculture and Fisheries Jacob Jensen and a majority in the Danish Parliament, aims to prevent bankruptcies and nursery closures.

The initiative intends to maintain sustainable and robust production of Danish fruit and vegetables. The CO2 tax, part of a broader green tax reform, aims to incentivize companies to transition to sustainable production processes.

However, concerns arose that the tax could disproportionately impact nurseries, which rely on fossil fuels for heating greenhouses and generating CO2 for plant growth. Increased tax pressure could lead to closures, resulting in a decline in production rather than actual conversion to sustainable practices.

The allocated funds will be distributed through a de minimis support scheme, providing compensation for rising costs associated with the CO2 tax. Nurseries can receive compensation for up to 80 percent of their CO2 tax payment until 2029.

In exchange for the support, nurseries are required to conduct a climate review, mapping their CO2 emissions and reduction potential. They must also commit to making specific investments aimed at reducing their environmental impact. This measure ensures that the support contributes to long-term sustainability within the horticulture sector.