|Policy Type:||Economic Instruments>Market-based instruments|
|Agency:||Danish Ministry of Environment and Energy|
|Legal References:||Act on CO2 quotas for electricity production - Act no. 376 of June 2,1999.|
|Climate Change Description:|
The Act on CO2 Quotas for Electricity Production entered into force in July 2000 after approval by the European Commission in April 2000. For the period 2001-2003, a ceiling has been set for total CO2 emissions from the electricity sector which will be reduced gradually from 22 million tonnes of CO2 in 2001 to 20 million tonnes in 2003. The state will allocate emission permits for free to electricity producers in Denmark based on their historical emissions between 1994 and 1998. The quota system calls for individual Danish power companies receipts of CO2 emission permits each year to be gradually reduced. If the annual quota is exceeded, the production companies will have to pay DKr 40 per tonne of carbon dioxide from 2001 to 2003. The revenue will be spent on energy-saving measures.The CO2 Quota Act is to be applied as from 2001.
|This record is superseded by:||Law on CO2 Quotas|
Last modified: Thu, 14 Mar 2013 16:29:06 CET