The Danish Act on CO2 Allowances defines which companies are subject to the scheme. New installations may in some instances receive free allowances. Read more about this below and follow the link to your right.
Activities covered by the Danish CO2 Allowances Act
The following activities by stationary installations are covered by the scheme in Denmark:
- energy-generating plants with at least 20MW input, including industrial plants and offshore plants;
- refineries and coke ovens;
- the ferrous metals industry (ferrous metals processing), exceeding a certain production capacity;
- cement, glass and ceramic (tiles) companies, exceeding a certain production capacity;
- pulp and paper companies exceeding a certain capacity.
For a more detailed description of companies that are covered, follow the link on your right.
Allocation of free allowances
In some instances new installations may receive free allowances. These allowances are allocated according to key figures related to production capacity and require e.g. that allowances are available in the pool. Allowances are allocated according to a “first come first served” principle. Allowances may be allocated on the first day of the month after carbon emissions have been emitted for the first time in connection with production.
Read more in part 4 of the Danish CO2 Allowances Act. Follow the link on your right.
The Danish Energy Agency decides on possible allowance allocation when processing applications for permits to emit CO2.
Application for permit and monitoring plan
If you expect your installation to be covered by the scheme, you must apply to the Danish Energy Agency for an emission permit. You must also submit a draft plan for monitoring emissions of CO2.
The Danish Energy Agency has prepared ‘standard solutions’ for smaller companies (emitting less than 500,000 tonnes of CO2).
The permit gives the company permission to emit CO2.