Denmark will introduce a carbon tax for the country's agriculture from 2030, initially equivalent to 300 Danish kroner per ton.
This is the outcome of an agreement between the government and several industry organisations, which was presented on Monday.
The revenue from the new tax will go towards investments in climate technology and production transformation. The money will also be used to plant 250,000 hectares of forest in the country by 2045.
From 2035, the fee will be increased to 750 Danish kroner per ton.
This is a good agreement, which I am pleased about, says Foreign Minister Lars Løkke Rasmussen (The Moderate Party) and calls the deal "unique".
The Danish parliament, the Folketing, has previously decided on a similar fee for Danish industry. An agreement for agriculture has, after extensive negotiations, been postponed several times, and still needs to be approved by the Folketing despite Monday's announcement.