The Danish Fisheries Association and the Danish Pelagic Producers’ Organisation are very concerned about the consequences of introducing a uniform CO2 tax that includes Danish fisheries.
The Danish Government presented plans for a new tax today, Wednesday 20 April, which would hit the fishing industry hard at a time when fuel prices are peaking at record highs.
Therefore, the Danish Fisheries Association and the Danish Pelagic Producers’ Organisation have had a report prepared by Implement Consulting Group, which describes the consequences for Danish fisheries by introducing a CO2 tax.
CONCLUSIONS OF THE REPORT
* Since 1992, Danish fisheries have reduced their CO2 emissions by 62 per cent, and account for 0.4 per cent of Denmark’s total CO2 emissions. If you introduce a CO2 tax on fishing, Denmark’s total CO2 emissions will fall by 0.05 percent.
* It is estimated that a CO2 tax will affect a total of 1,600 jobs, which are primarily located in North and West Jutland. The consequences thus affect local areas where there are fewer job opportunities and where fishing is of great importance.
* A C02 tax will mean that a third of Danish fishing will be unprofitable, and such a tax will hit small and medium-sized vessels the hardest.
* The CO2 savings by introducing a CO2 tax in Danish fisheries are extremely limited, as this is a sector exposed to leakage. 60-70 percent of the CO2 savings are leakage. This is due to the fact that 82 per cent of fishermen’s fuel consumption can be refueled abroad combined with the fact that fishing is a competitive sector that loses export shares if a Danish tax is significantly higher than in other countries.
* With a CO2 tax of DKK 600-750 (€80-€100/£67-£84)per tonne of CO2, it is cheaper for the fisherman to pay the tax rather than investing in more climate-efficient solutions. This is because today it costs the fisherman approx. 2,200-2,600 kroner (€295-€350/£245-£290) to reduce its CO2 emissions by one tonne. As a result, a CO2 tax will not restructure the profession, which is otherwise the intention.
Climate efforts in Danish fisheries
In the Danish Fisheries Association and the Danish Pelagic Producers’ Organisation, we have been working for years to restructure the fishery and reduce the fishery’s CO2 footprint. We are ready to continue that transition. We will achieve the goal of 70 percent CO2 reduction by 2030, and in the blue climate partnership we have committed ourselves to working
towards a CO2-neutral fishery by 2050. Danish fishermen commit themselves to achieving the goal of 70 percent CO2 reduction from 1990 to 2030.
* The fishing industry has reduced CO2 emissions by 62 percent since 1990, and is just 8 percent from achieving the goal of 70 percent CO2 reduction by 2030. To achieve the 2030 goal, fuel consumption must be reduced by approx. 21 million liters from 2019 to 2030.
In the latest climate projection, the Danish Energy Agency expects that the energy consumption of fishing vessels will fall by 11 percent by 2030. This corresponds to a saving of 11 million liters of fuel. Thus, further measures must be implemented that can ensure reductions corresponding to approximately 10 million liters of fuel in order to achieve the target.
* A fishing vessel traditionally has a long life. To achieve the 2030 target, we want to ensure that the
vessels in Danish fisheries become even more climate efficient. Among other things. by systematic use
of energy inspection schemes that ensure that the individual vessel gets an overview of how it can reduce its CO2 emissions and can arrange the vessel accordingly.
* It is not expected that electric motors can be used in Danish fishing in the near future. As a first step towards increased electrification, we will work to ensure that vessels moored in Danish fishing ports can use electricity from renewable energy sources as wind power while moored. Today, vessels have to use energy from the vessel’s own engine.
* The industry will also work to ensure that the C02 reductions can be found through a reduction in the total Danish fishing fleet. Among other things, it will occur as a result of the scrapping rounds that will be carried out in Danish fisheries before the end of 2023.
* We will work for the necessary changes to the EU rules in the field of fisheries, which today
constitute barriers to the introduction of new and climate-friendly technology. This applies, for example, to capacity rules, gear rules and rules for catch areas.
Danish fishermen are CO2-neutral in 2050
* Therefore, we will continue after 2030 along the path we follow today. And when technological development ensures the possibility of better fuel utilization, the possibility of alternative fuel sources, such as power-to-X and not least a greater degree of electrification of Danish fisheries, we naturally invite. We will of course take an active part in driving the
development of new technology, and will follow the development in related industries closely.
* At the same time, the Danish Fisheries Association PO and the Danish Pelagic PO will continue to work on a concrete plan to achieve the goal of being CO2-neutral by 2050.