(Bloomberg) -- Denmark will spend about 5 billion kroner ($715 million) through 2030 on green transition of its agriculture sector and other environmental initiatives, which it will fund in part by a higher tax on fuel.

A broad majority in the Danish parliament agreed to allocate funds to a range of green initiatives including subsidiaries for methane-reducing feed in the agricultural sector, promotion of plant-based food, reforestation, clean drinking water and green district heating, the government said on Monday. 

The Nordic nation will raise its diesel fuel tax by 0.5 krone per liter ($0.27 per gallon) from 2025. The plan is expected to lead to a reduction of 0.3 million tons of CO2 in 2025, it said.

©2024 Bloomberg L.P.