Abstract
This article gives a background to and describes the functioning of the Danish carbon dioxide (CO2) emissions trading system for the period 2000-2003 that was adopted by the Danish Parliament (Folketing) in 1999. The system sets total quotas for CO2 emissions from electricity production, introduces emission allowances for the individual power companies and allows for emissions trading and banking. The implications for international emissions trading as well as the notification procedure in the European Commission are discussed.
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