Environmental law

 

In 2004, Denmark implemented the EU Emission Allowance Directive (Directive 2003/87/EC) by the Danish Act on CO₂ allowances. The Act applies primarily to businesses in the electricity and heating sectors, but other energy-intensive industries will also be subject to the Act. The Act provides for the businesses comprised to be allocated a number of allowances annually upon application. The allowances represent the number of tonnes of CO₂ that a business is entitled to emit.

 

If, as a result of any reduction of its energy consumption, a business holds surplus allowances allocated, that business may sell its surplus allowances to other businesses through a national registry of allowances. On the other hand, a business wishing to emit CO₂ in excess of the amount corresponding to the allowances allocated to it will have to pay for that additional emission by purchasing a corresponding number of allowances on the market.

 

Allowances may be traded freely and such trading will be registered in the national registry of allowances. In addition to acquiring nationally allocated allowances (the so-called assigned amount units) from other businesses subject to allowances in the EU or under the Kyoto Protocol, businesses subject to allowances and holding an account in the national registry of allowances may as of 2008 also acquire allowances originating from eg the so-called Joint Implementation and CDM projects under the Kyoto Protocol.

 

Once a year, any business subject to allowances is to report and arrange for verification of the emissions by the business during the preceding year. Moreover, a business subject to allowances is also to prepare an emission statement to be submitted to the national registry of allowances.

 

If the emission of CO₂ by a business exceeds the allowances allocated or purchased, an excess emission penalty will be payable, which will in 2008 amount to EUR 100 per tonne of CO₂.

 

We assist businesses in relation to the registry of allowances as well as in relation to the annual reporting and verification of emissions, etc.