Danish industrial fishery faces challenges with 2025 CO2 tax, impacting competitiveness, processing sector, and marine ingredient exports
The Danish fishing and processing sectors are bracing for significant changes as a new CO2 tax comes into effect in 2025.
While the tax aims to promote sustainability, industry leaders warn it could have far-reaching consequences for the nation’s fishing communities and processing industries.
“This tax is a major challenge for Danish fisheries. With no viable alternative to diesel fuel currently available, it could severely impact fishermen’s operations and the entire value chain,” explained Marine Ingredients Denmark
CO2 Tax Details and Impact
From 2025, Danish fishing will be required to pay a CO2 tax of DKK 2.25 (€0.30/£0.26) per litre of fuel. While the tax seeks to reduce carbon emissions by encouraging alternative fuels, industry experts note that such options remain unrealistic for the fishing sector at this time.
The tax could lead some fishers to land their catches in countries without similar levies, potentially disrupting the supply chain within Denmark. This, in turn, threatens local auction houses, fishmeal and fish oil producers, and the broader processing sector.
“A reduction in landings at Danish ports would result in fewer raw materials for processing, directly affecting production capacity and export potential,” warned the industrial processing sector.
Economic Significance of the Processing Sector
In 2023, the value of fish landed for fishmeal and fish oil production alone reached DKK 1 billion (€134 million/£115 million), accounting for approximately one-third of the total value of Danish fisheries.
Denmark holds a dominant position as Europe’s largest producer of fishmeal and fish oil and is among the top 10 producers globally. In 2023, marine ingredient exports exceeded DKK 4.5 billion (€603 million/£518 million), driven by high demand for these premium products.
“Fishmeal and fish oil are vital to global aquaculture due to their high protein content and essential omega-3 fatty acids. Demand is only expected to grow in the coming decade,” noted Marine Ingredients Denmark
The global demand for these marine ingredients underscores their role in sustainable food production. Aquaculture, which relies on fishmeal and fish oil, is considered one of the most environmentally friendly forms of food production, requiring fewer resources and producing a lower environmental impact than meat production.
Threats to Denmark’s Global Position
The CO2 tax risks undermining Denmark’s competitive edge in the global market. Reduced landings could weaken the supply chain, impacting businesses and jobs reliant on the fishing industry.
“Denmark’s position as a global leader in marine ingredient production is under threat. We must find a way to secure the industry’s future while balancing environmental goals,” urged the sector.
Call for a Balanced Approach
Industry leaders are calling on policymakers to consider the broader implications of the tax on the blue economy. They stress the need for measures that ensure the economic sustainability of both the fishing and processing sectors without compromising Denmark’s global leadership.
“It’s crucial to strike a balance between environmental responsibility and economic viability. The livelihoods of thousands in the industry and its role in sustainable food systems are at stake,” concluded Marine Ingrdients Denmark.
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