Denmark signed the Kyoto Protocol in 1998 together with the EU and other member states, committing to reduce the CO₂ emissions by a total of 8 pct. for the period 2008-2012 compared with 1990 levels. As part of the EU Burden Sharing Agreement, Denmark committed to reducing national CO₂ emissions by 21 pct during the period 2008-2012 compared with 1990 levels.

The Kyoto Protocol allows countries to meet a portion of their obligations through the use of carbon credits The Kyoto Protocol states that the use of climate credits may only be a supplement to national reduction initiatives.

On the basis of the Danish government’s initiative “A cost-effective climate strategy” (Only available in Danish) from 2003, the State initiated its credit procurement programme 2003-04. The goal of the programme was to purchase carbon credits for the period 2008-2012 from JI and CDM projects. Denmark chose specific projects in cooperation with project owners rather than buying credits from market dealers.

CDM projects (Clean Development Mechanism) are projects in developing countries that have no reduction commitments under the Kyoto Protocol.  If a project is located in a country with a reduction commitment of its own, the project is called a JI project (Joint Implementation).

Before a project is started, the UN assesses whether the project is additional which means it contributes with a CO2₂ reduction that would otherwise not have happened. Throughout the life of a CDM project, the UN approves and issues climate credits equal to the CO₂ reduction the project contributes with. The issuance of credits is based on elaborated documentation from an independent third party who assesses the amount of CO₂ emission reduction that was actually realized from a project.

The Danish JI/CDM programme 2008-12 has been involved in approximately 80 projects in Eastern European countries and a number of developing countries primarily in Southeast Asia. The programme is currently being phased out. The programme has been subject to external evaluations that can be seen here:

 - Evaluation of the Danish JI/CDM Programme