Danish farmers will have to pay a levy of 300 kroner (£34) per tonne of methane on emissions from livestock from 2030, the government has confirmed.
The controversial measure has been confirmed after months of discussions over what the world’s first tax on agricultural emissions should look like.
From 2035, the country's livestock producers will have to pay an increased levy of 750 kroner, or £84.
Farmers will automatically get a rebate of 60%, with these increasing if more environmental measures are undertaken.
Jeppe Bruus, minister for the Green Tripartite, said government would "do what it takes to reach our climate goals" after receiving a "broad majority" in parliament.
Earlier this year, Denmark, a major pork and dairy exporter, came to an arrangement to manage its agri-food transition, called the Green Tripartite Agreement (GTA).
Mr Bruus said there was a "huge, huge task that is now underway", involving the "transformation" of agricultural land "to forestry, to natural spaces"
“Danish nature will change in a way we have not seen since the wetlands were drained in 1864," he added.
Elsewhere in the world, New Zealand had passed a similar law which was due to take effect in 2025.
However, this has since been dropped following criticism from farming industry groups.
