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Denmark's Third National Communication on Climate Change

4 Policies and measures

4.1 Climate policy and the decision-making process

Since the Brundtland Commission’s report "Our Common Future" from 1987, Denmark’s climate policy has been developed in interaction with the different sectors of society, international climate policy and the results of related research.

Since the end of the 1980s many initiatives have been taken to reduce the emissions of greenhouse gases. The initiatives have produced important results – particularly with respect to CO₂ – and will lead to further reductions in the emissions of greenhouse gases in the future.

The initiatives have been – and still are –  directed primarily towards the sectors of society whose activities are connected with considerable emissions of greenhouse gases.

The initiatives have the objective of broad environmental improvements in society and include environmental taxes and involvement of the population in the debate and the decisionmaking process in the environmental field.

A new objective is to ensure cost-effective action in order to achieve more environment for the money.

In order to monitor the development of the overall effect of the initiatives on the emissions of greenhouse gases from energy consumption in Denmark, the basis for and follow-up on Denmark’s action to reduce the emissions include emission inventories that are adjusted for inter-annual temperature variations and variations in Denmark’s import/export of electricity .

International climate objectives

Since 1990 Denmark has undertaken or committed itself to several targets with respect to reducing greenhouse gas emissions:

Section 4.1.1 gives a short description of the general, democratic decision-making processes, to which Denmark’s climate policy is also subject.

4.1.1 National action plans

In 1988 the government of that time issued "The Government’s Action Plan for Environment and Development". The plan was a follow-up on the Brundtland Report and was based in principle on striving for environmentally sustainable development. One of the main messages in the plan was the need to integrate environmental considerations in decisions and administration within such sectors as transport, agriculture and energy.

In the years since then a number of ministries have prepared sector action plans in which environment is an integral element. The sector action plans thus deal with the entire development in a sector combined with solutions of environmental problems caused by the sector. The sector  plans for energy, transport, forestry, agriculture, aquatic environment, waste, and development assistance are important examples.

The plans from the 1990s all contained specific environmental objectives and, usually, deadlines for a hieving them. In addition, there were a number of concrete initiatives that are intended to lead to achievement of the objectives. Progress has been evaluated regularly to check whether the implementation of the plans resulted in achievement of the objectives. The results of the evaluations have been presented in political reports from the sector ministries or in special follow-up reports.

The evaluations and follow-up have often given rise to the preparation of new action plans, either because additional initiatives have been necessary in order to achieve the objectives or because the development of society or the development within the area in question has made it necessary to change both objectives and initiatives.

Major sector plans that have been of importance for the reduction of greenhouse gas emissions are:

The sector plans deal with different aspects of the climate problem. In the energy and transport sectors the main environmental concern has been the emissions of the greenhouse gas CO₂. The plans in these sectors were therefore to a great extent concerned with reducing CO₂.

The other sector plans are not primarily focused on reducing greenhouse gas emissions, in part because the sectors are battling with other major environmental problems that efforts have been made to solve through the plans. The main concern in the agricultural sector has been pollution of the aquatic environment. In the waste sector it has been reduction of the volume of waste, and in the industrial sector, reduction of emissions/discharges of harmful substances to the atmosphere/aquatic environment, the use of toxic substances, etc.

However, the implementation of the sector plans has to a great extent also resulted in reduction of greenhouse gas emissions. For example, the reduction in the agricultural sector’s nitrogen emissions, which the aquatic environment plans are resulting in, is at the same time reducing the emissions of the greenhouse gas nitrous oxide. The initiatives to reduce waste quantities mean fewer landfill sites and thus less formation and emissions of methane, and the ongoing increase in forested area will mean increased removals of CO₂.

In addition, the energy and transport plans meant that changes were made in the energy and transport areas in all sectors. The initiatives in the energy area have thus resulted in reduced energy consumption and, with that, reduced CO₂ emissions within a wide range of sectors, including the domestic sector and the business sector.

In June 2002 the government’s national strategy for sustainable development in Denmark, "A SHARED FUTURE – balanced development" was adopted by the Folketing. The strategy must be seen in part as one of Denmark’s responses to the challenge of Agenda 21, which was adopted at the UN General Assembly in Rio in 1992. The government lists eight objectives and principles for creating sustainable development:

1. The welfare society must be developed and economic growth must be decoupled from environmental impacts.
2. There must be a safe and healthy environment for everyone, and we must maintain a high level of protection.
3. We must secure a high degree of biodiversity and protect ecosystems.
4. Resources must be used more efficiently.
5. We must take action at an international level.
6. Environmental cosiderations must be taken into account in all sectors.
7. The market must support sustainable development.
8. Sustainable development is a shared responsibility, and we must measure progress.

The strategy is built up with a number of sectors: food production, forestry, industry, transport, energy, urban and housing development, and intersectoral action: climate change, biodiversity, environment and health, resources and resource efficiency, knowledge and policies and measures, the global dimension and public participation.

In order to follow developments in relation to the strategy, regular indicator reports are prepared. The first, from August 2002, contains 14 key indicators – including indicators for economic growth, greenhouse gas emissions, air pollution, employment and discharge of nutrients to the marine environment. In addition, the trend in a wide range of more specific indicators is being monitored. Examples of these indicators are the l ng term development in average temperatures near ground level globally and in Denmark, the beginning and the size of the pollen season, the incidence of asthma, the thickness of the ozone layer, by-catches of porpoises, the amount of PCB in cod liver and the number of organic farms. The conclusion of the indicator report is that Denmark is on the way to sustainable development since the indicators show that Denmark’s stable economic growth has happened without corresponding increases in a number of environmental parameters. For example that energy consumption and greenhouse gas emissionss have not risen in step with the economy, and that the consumption of drinking water and discharges of acid substances have fallen.

On the environment policy front, Denmark has participated actively in improving environmental protection in Europe through the EU cooperation and through bilateral environmental assistance to Central and Eastern European countries. On a number of points, the EU’s environmental regulation has put Europe ahead of the rest of world environmentally. There are also many examples of EU rules having helped to strengthen environmental protection in Denmark. With the adoption of the Amsterdam Treaty, sustainable development became a main objective for the EU, and integrating environmental considerations in the EU’s sector policies became an obligation.

4.1.2 Denmark’s new climate strategy

In February 2003 the government published Denmark’s new climate strategy. The basis of the strategy is that Denmark must fulfil its international climate obligations following from the Kyoto Protocol and the subsequent EU burden sharing agreement.

Although many important initiatives have already been launched in order to live up to the climate objective, considerable work still remains before Denmark can live up to its very ambitious Kyoto objective. According to the latest projection of Denmark’s emissions of greenhouse gases¹, it is estimated that, unless additional measures are initiated, Denmark will be 20-25² million tonnes CO₂ equivalents per year short of achieving its reduction obligation under the Kyoto Protocol in the period 2008-2012.

It is therefore vital in the climate strategy to plan the action cost-effectively.

The Kyoto Protocol offers the possibility of planning climate action that is more flexible and that, globally, gives more environment for the money. The climate strategy combines cost-effective national measures with use of the Kyoto Protocol’s flexible mechanisms.

For many of Denmark’s energy producers and a large part of the energy- intensive industry, the coming EU Directive on a scheme for trading with greenhouse gas emissions within the Community will form the framework for the coming action. The companies that will be covered by the scheme, and whose activity will be   regulated by a quota, will be able to plan their climate action themselves. They can choose to reduce their own emissions when that is most appropriate or to buy quotas or credits from project-based emission reductions when that is deemed most suitable. This means that the companies  concerned will be able to adjust their action on an ongoing basis so that it is always as effective as possible.

Reduction is primarily a task for the private sector, but government action can supplement the private sector action and, in the start-up phase, help to get the market for CO₂ credits going.

Besides quota management and use of flexible mechanisms, the climate strategy includes a number of national measures, including initiatives to promote continued energy savings and improve of energy efficiency.

Within the agricultural sector there may also be possibilities for reducing greenhouse gas emissions. However, the potential has not been sufficiently clarified at the present time, and the possibilities for additional cost-effective measures within this sector willbe analysed in connection with a coming Action Plan for the Aquatic Environment III.

Within transport the selected analyses carried out show that national solutions for the most part are relatively expensive. However, it is estimated that more efficient and less expensive initiatives may be carried out jointly at EU level.

Since the reduction costs in the different sectors are constantly changing as a consequence of technological development and changed economic framework conditions, the strategy includes regular evaluation of the action in order to ensure that the most cost-effective policies and measures are chosen.

The picture of potentials and economic reductions in costs that can be given at the present time for selected national measures to reduce greenhouse gas emissions are shown in table 4.1.

Table 4.1
Reduction possibilities and cost of selected measures to reduce greenhouse gas emissions

DKK 100 per tonne CO₂ equivalents, and will most likely be DKK 40-60, assuming that the USA remains outside the Kyoto system. With this price level it will be considerably cheaper to buy international quotas/ credits than to implement most of the national reduction measures. However, to be able to compare the economic unit costs of the national reduction measures with the price of international quotas/credits, the price must first be adjusted with the socalled net tax factor, whereby the cost of acquiring quotas/credits is calculated in consumer prices, which are the comparable quantity across measures. In an economic analysis, the main price estimate for quotas/credits of DKK 40-60 is an expression of costs of DKK 50-70 per tonne CO₂ equivalents.

In a comparison with the national policies and measures, it is important to be aware that these must typically be seen in a sector-political context, in which climate is just one of many considerations in the policy planned. For example, a fundamental consideration in the energy sector is security of supply, which, all else being equal, is improved by a lower energy consumption and a diversified energy supply.

The analyses carried out do not cover every conceivable national measure, and the costs may change in the coming years as a consequence of new knowledge and new technologies. An interministerial committee will regularly evaluate the costeffectiveness of the national policies and measures, including new ones that are not mentioned in table 4.1. The government has set an economic marker of DKK 120/tonne CO₂ equivalents to be used as a basis for implementing national policies and measures outside the area covered by the EU trading scheme. The analyses show that only relatively few national policies and measures with a significant potential, that do not exceed DKK 120/tonne CO₂ equivalents, would be able to compete with the price of using the flexible mechanisms. This must be seen in the light of the fact that Denmark has already made a massive national effort up through the 1990s, while there is a large, unexploited potential in other countries.

For the national policies and measures, where the analyses show relatively low reduction costs, the potential is, all in all, insufficient to meet the need for making up the Danish reduction shortfall. On the other hand, there is considered to be a considerable potential for buying quotas and credits internationally.

For these reasons, the government's cost-effective strategy for meeting Denmark's reduction obligation is to a certain extent based on the use of flexible mechanisms - emissions trading and the project mechanisms, Joint Implementation and the Clean Development Mechanism. The EU trading scheme will be a key instrument. The actual composition of the action will therefore depend on the extent to which the companies concerned choose to implement their own reduction measures or to buy quotas abroad.

Table 4.2
Aggregation of sources/sectors in the CRF/IPCC format to the six main economic sectors in Denmark

Table 4.3
Denmark’s emissions of climate gases in 1990/95 and 2001, together with projections, breakdown by economic sector

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4.2 Policies and measures and their effects in Denmark's economic sectors

In sections 4.2.1 to 4.2.6 below, policies and measures of importance for emissions and removals of greenhouse gases are examined within the following six economic sectors: energy, transport, the business sector, agriculture and forestry, the domestic sector and waste. Table 4.2 shows how the sector classification that is to be used in connection with the annual emission inventories (the CRF/IPCC format) is aggregated to the six economic sectors.

Table 4.3 shows the main result of this aggregation for the base year, 2001, 2008-2012 and 2013-2017.

Figure 4.1
Denmark’s emissions of greenhouse gases in 2001, breakdown by economic sector

Source: National Environmental Research Institute and the Danish Environmental Protection Agency

4.2.1 Energy

The energy sector's production, conversion, and distribution of energy account for 40% of Denmark's total greenhouse gas emissions, and mainly the greenhouse gas CO₂ is emitted. 97% of the total greenhouse gas emissions from the energy sector is CO₂, 2% is methane (CH₄) and 1% is nitrous oxide (N₂O).

CO₂

Energy production and energyconsuming activities in the transport sector, industry and the other sectors are the main contributors to the total emissions of CO₂ due to use of large quantities of coal, oil and natural gas.

The energy sector is therefore centrally placed in the efforts to reduce the emissions of CO₂. Many initiatives have been taken over the years to reduce the emissions, and work is still going on to find the best and most cost-effective measures with a view to fulfilling Denmark's international climate obligations.

The focus of this section is energy production and energy supply. The energy-consuming activities and the possibilities for energy savings in the different sectors of society are dealt with in greater detail in the subsequent sections.

Implemented policies and measures

Some policies and measures can bring general pressure to bear on players in the energy sector to get them to reduce their CO₂ emissions. Denmark's national Quota Act, which regulates the emissions of CO₂ from open, market-regulated production of electricity is an example.

The CO₂ Quota Act puts a ceiling on the electricity producers' CO₂ emissions. If the producers exceed a set quota, a penalty tax is imposed on them for every tonne by which the quota is exceeded. The producers can decide for themselves how they keep to the quota - whether by energy efficiency improvements at their plants, by changes in fuel or by reducing production. The Danish producers can also trade quotas among themselves.

Taxes have also been used for many years as an instrument for reducing the CO₂ emissions from the energy sector, since fuels used for heat production have been subject to a CO₂ tax and an energy tax for many years, partly with a view to a general reduction in energy consumption and partly to promote fuels with lower CO₂ emissions - primarily biomass, on which there is no CO₂ tax and, in the case of most applications, no energy taxes either. R&D activities include energy savings, more efficient energy conversion and renewable energy technologies.

Table 4.4
Policies 0r measures in the energy sector

Increased use of CHP and enlargement of the areas served with district heat have been main elements of the Danish strategy to promote efficient use of energy resources ever since the end of 1970s. Today, more than half of Denmark's domestic electricity consumption is cogenerated with heat at CHP plants, and the potential for further use of CHP is limited. For this reason, only a small increase in CHP production is expected in the future. Today, CHP is promoted partly by the tax system, partly by electricity production grants for small-scale CHP plants and, lastly, by prioritising electricity from smallscale CHP plants. Plans are in hand to change the last-mentioned, so in future the production from smallscale CHP plants can be sold on market terms too.

Use of renewable energy sources can reduce the emissions of CO₂ from fossil fuels. The proportion of Denmark's gross energy consumption that is covered by renewable energy increased from 6.5% in 1990 to 12% in 2001 and is expected to reach about 14% in 2010.

Renewable energy sources are promoted through economic instruments, including the tax system, and by direct production or establishment grants. Contracts and orders within the electricity and heat sector used to play a role, but use of this instrument has largely ended. Lastly, financing R&D activities is contributing to the continued growth in the proportion of renewable energy.

Substitution of natural gas for coal or oil reduces the emissions of CO₂. The first Danish natural gas was landed from the Danish sector of the North Sea in 1984. From then, natural gas consumption increased to 193 PJ in 2001 and accounted for 23% of gross energy consumption. Growth is now expected to stop, in part because of the relative high price of natural gas. Natural gas is favoured by a lower CO₂ tax than oil and coal because of its lower emissions and will be promoted by the coming EU trading scheme. The ongoing liberalisation of the Danish natural gas sector may also result in lower prices and thus increased use of natural gas.

Additional policies and measures

With the energy sector's big contribution to Denmark's total emissions of greenhouse gases, action in the energy sector is an absolutely vital element of Denmark's new climate strategy. In particular, it is estimated that expected rising electricity exports could result in a considerable increase in emissions if measures are not taken to prevent this.

Electricity production is covered by the proposed EU Directive on emissions trading. The climate strategy is based on the assumption that electricity production will be covered by the EU's scheme from 2005. Since all the EU Member States' electricity producers will be subject to quotas on their fossil electricity production, electricity prices are expected to rise across Europe. That offers the possibility of imposing rather tight CO₂ quotas on the electricity producers so that Denmark's fulfilment of the climate objective is not affected by any high electricity export. In periods with high electricity prices, electricity producers are expected to make considerable use of the flexible mechanisms.

The existing national CO₂ quota regulation of electricity production ends at the end of 2003.

The heat sector is today subject to full CO₂ and energy taxes and is also subject to considerable administrative regulation. In connection with the climate strategy it is therefore believed that there is limited room for further cost-effective reduction measures. In the climate strategy it is proposed that the sector be kept outside the quota regulation for the first period, 2005-2007. After that, according to the present proposal for a trading directive, this sector will also be covered by quota regulation.

Methane, CH₄

Many small sources contribute to the energy sector's methane emissions. The biggest single contribution comes from gas-fired CHP plants, which emit uncombusted natural gas. With a view to minimising the emissions, a statutory order now limits the emissions from new plants, corresponding to about 3% of fuel consumption.

4.2.2 Transport

In 2001 the transport sector accounted for 18% of Denmark's total emissions of greenhouse gases. Of the transport sector's emissions, CO₂ accounts for 96%, corresponding to 12 million tonnes of CO₂, nitrous oxide for 3% or 395,000 tonnes of CO₂ equivalents, and methane for about 1%, corresponding to 70,000 tonnes CO₂ equivalents.

In 2001 the transport sector's energy consumption - mainly oil products - accounted for about 30% of energy consumption in Denmark. Traffic, particularly passenger traffic, has increased steadily in the last few years. In step with the increase, energy consumption and greenhouse gas emissions have also increased. In 2001 greenhouse gas emissions from the transport sector were 17% above the 1990 level. The latest forecast from 2002 indicates that, without additional initiatives, the sector's emissions in 2005 will be 24% above the 1990 level, rising to about 35% in the first commitment period 2008-2012.

CO₂

Efforts to curb the upward trend of greenhouse gas emissions in the transport sector have not yet succeeded, in part because reducing CO₂ emissions in Denmark, which is not a car manufacturing country, is extremely difficult without international initiatives.

As shown in table 4.2, the greenhouse gas emissions from fuel for vehicles, ships and aircraft are included under transport. The contribution from the armed forces consists mainly of CO₂ and accounts for just under 2% of the inventory for the transport sector. The proportion of fuel consumption for multilateral military operations, which is therefore kept out of the total national inventory, is at present regarded as minimal.

Implemented policies and measures

In 2002, working on the basis of the previous trends in passenger and freight traffic, the Danish Road Directorate carried out a projection of road traffic up to 2016. The projection indicates that road traffic will continue to grow. With the chosen assumptions it is estimated that road traffic will grow by more than 25% from 1997 to 2016. In the period 2000 to 2010, growth is expected to lie at about 13%.

A large part of total freight and passenger transport is by road and is expected to increase. The trend in freight and passenger transport by road will therefore determine the transport sector's energy consumption and thus its CO₂ emissions. Table 4.5 shows the existing policies and measures within the transport sector. In the last few years a number of important steps have been taken at international level, and these - supported by targeted and effective Danish action may help to turn the trend for the transport sector's CO₂ emissions.

Additional policies and measures

The transport sector's possibilities for contribution to reduction of Denmark's CO₂ emissions show that the cost-effectiveness of the measures is totally dependent on the sideeffects, cf. table 4.1. The decision to implement the various measures within the transport sector must therefore be evaluated on the basis of the measures' other effects and not from a pure CO₂ consideration. The generally high economic shadow prices without side-effects are primarily a consequence of the already high level of taxation in the transport sector. It is thus a common feature of most of the measures that they are directed towards parts of the transport sector that, taken together, pay the full economic cost of transport, since there is a considerable fiscal element in the regular car taxes.

Methane, CH₄

The transport sector's emissions of methane account for about 1% of the sector's greenhouse gas emissions, corresponding to about 70,000 tonnes CO₂ equivalents.

Nitrous oxide, N₂O

Nitrous oxide accounts for 3% of the transport sector's total greenhouse gas emissions, or 380,000 tonnes CO₂ equivalents.

4.2.3 Business sector

The business sector covers industry, building and construction and public and private service.

The sector accounts for about 13% of Denmark's total greenhouse gas emissions. By far the largest part, 93%, is CO₂. The sector is also the only source of emissions of industrial gases. Table 4.6 shows the policies and measures within the business sector.

Table 4.5
Policies or measures in the transport sector

Table 4.6
Policies or measures within the business sector

The initiatives going on to reduce the emissions from the business sector include both promotion of energy savings and energy-efficient improvements, conversion of energy production to cleaner fuels and initiatives to reduce emissions of industrial gases.

Earlier analyses have shown that there is a big potential for profitable energy efficiency improvements within the business sector, so improving energy efficiency is a vital area of action.

CO₂

Industry, building and construction, trade and private service

Industry is responsible for most of the sectors' emissions of CO₂. The emissions come mainly from energyconsuming activities in industry. Cement and brick production also contributes CO₂, which comes from the raw materials used.

The main measure used to get the business sector's energy consumption down is a green tax package for the business sector, which was introduced in 1995. The package contained a combination of taxes and return of the proceeds to businesses through government grants etc. to promote energy savings in companies. The package led to a higher CO₂ tax and the introduction of a space-heating tax for businesses. At the same time, a scheme was introduced in which companies with a big energy consumption have the possibility of gaining a discount on the taxes in return for entering into an agreement on energy efficiency improvements.  The combination of taxes and return of the proceeds was intended to ensure a marked reduction of businesses' CO₂ without affecting their international competitiveness. The grants were also intended to promote the use of more energyefficient technologies and production methods.

The objective with the green tax package was to get the business sector to contribute to a reduction of Denmark's total CO₂ emissions. The target contribution was about 4% in 2005 in relation to the emissions in 1988.

The green package's overall effect was evaluated in 1999. The main conclusion is that the package has functioned as intended. Considerable environmental gains have been achieved in an economically effective way that takes account of businesses' international competitiveness. The energy package's environmental effects largely live up to the original expectations and the package is thus an important element of the efforts to reduce Denmark's CO₂ emissions.

In the climate strategy from February 2003 it was evaluated whether there was still a potential for relatively cheap emission reductions in the energy-intensive part of industry, which had hitherto paid lower CO₂ taxes than the rest of the business sector and the domestic sector for reasons of competitiveness.

With a common EU trading scheme, some energy-intensive companies could be made subject to tighter CO₂ regulation than hitherto without affecting their competitiveness too seriously. For these companies future regulation is thus expected to be based on implementation of the common EU trading scheme.

This also applies to the product emissions that do not come from energy consumption but that are covered by the EU trading scheme. In Denmark's case, it will be primarily the CO₂ emissions from cement production. These emissions have not previously been regulated.

CO₂ emissions from public service

Data on energy consumption in the public sector have been collected for some years as a means of rendering the sector's energy consumption visible. As a consequence there are now complete inventories of energy consumption in county and state institutions, but more limited inventories of the individual municipalities' energy consumption.

In continuation of the provisions in the Act on Promotion of Savings in Energy Consumption from 2000 and several energy policy agreements, plans are in hand for further tightening, particularly in the state sector. The circular's requirements will be tightened and so will the obligation concerning energy-afficient procurement.

CO₂ emissions from cement production

Cement production results in big emissions of CO₂. The production process itself is very energyintensive and, a large quantity of CO₂ is emitted in connection with the process. It takes about 4,950 MJ energy to produce 1 tonne of cement.

Cement production in Denmark is concentrated in a single company. In 2001 the total annual emissions of CO₂ from cement production were about 2.6 million tonnes. About half comes from energy consumption and the other half from chalk, which is one of the raw materials used in the process.

A lot has been done within the cement industry. For example, in the last 20 years the Danish cement producer has reduced its CO₂ emissions by about 13% per tonne cement produced. In addition, cooperation with the Danish Environmental Protection Agency is expected to result in increased use of alternative fuels,which will reduce the CO₂ emissions still further.

The action on the cement industry's energy consumption has also hitherto been based on the green tax package for businesses, with a combination of taxes and agreements on energy efficiency improvements.

In future, regulation of the industry's energy consumption will be based on implementation of the EU emissions trading scheme. As mentioned earlier, this will also apply to product emissions that do not come from energy consumption.

HFCs, PFCs and SF₆

The industrial sector is the only sector with emissions of the industrial gases HFCs, PFCs and SF₆. These gases are used as cooling and foaming agents etc. (HFCs), cooling agents (PFCs) and as insulating gas in high voltage contacts and as noisedamping gas in thermal glazing (SF₆).

The emissions of the industrial greenhouse gases (HFCs, PFCs and SF₆) are regulated in two ways - partly by a tax and partly by a statutory order on discontinuation of use of the gases in new installations.

Since 1 March 2001 a tax has been payable on the industrial greenhouse gases corresponding to their GWP, combined with the Danish CO₂ tax of DKK 0.1/kg CO₂. This means that HFC-134a is subject to a tax of DKK 130/kg because it has a GWP of 1,300. There is a ceiling of DKK 400/kg so although SF₆ has a GWP of 23,900, the tax is only DKK 400/kg and not DKK 2,300/kg.

The tax is also payable on service on existing and new installations/products.

In the spring of 2002 the Danish government issueda revised draft of a statutory order regulating the industrial greenhouse gases for national consultation. A first draft had been sent for notification in the EU in February 2001. The final statutory order entered into force on 15 July 2002.

The regulation includes a general ban on use of the industrial greenhouse gases in a wide range of new installations/products from 1 January 2006, including, for example, domestic refrigerators and freezers, PUR foam, etc. There are certain exceptions from the date for the general ban. For example, the ban will only apply to new commercial cooling plants, air-conditioning plants, etc. from 1 January 2007. Other exceptions are new sound-insulating windows, in which SF₆ has been banned since 1 January 2003, and PFCs, on which there has been a general ban since September 2002. However, some products and applications are exempted from the ban. This applies, for example, to service on existing plants, mobile cooling plants, including mobile air conditioning plants, cooling and air conditioning plants with HFC fillings between 0.150 and 10 kg HFC, electric switches, etc.

4.2.4 Agriculture, forestry and fisheries

The sectors agriculture, forestry and fisheries are generally considered as one single economic sector in Denmark. However, the importance of the individual sectors differs greatly with respect to Denmark's emissions and uptake of greenhouse gases. Agricultural farms have emissions of methane and nitrous oxide. The net uptake of CO₂ in Denmark's forests is included under Forestry. However, CO₂ emissions from energy use in all three sectors are considered under one heading because there is no breakdown of these in the annual energy statistics. Table 4.7 shows policies and measures for emission reductions within agriculture and forestry.

In 2001 agriculture accounted for 20% of Denmark's total greenhouse gas emissions, which consists mainly of methane and nitrous oxide, while a smaller percentage is CO₂.

Methane comes mainly from the agricultural sector. The emissions in 2001 were 173,000 tonnes, corresponding to 3.6 million tonnes CO₂ equivalents. The methane is formed through enteric fermentation in farm animals and from conversion of carbohydrates in manure.

Agriculture's biggest contribution to the methane emissions comes from dairy cows.

In the digestion process, methane is a by-product of the fermentation of feed in the rumen, primarily from grass and green fodder. In addition, methane formed during conversion of manure under anaerobic conditiions if the temperature is sufficiently high. These conditions normally occur in manure stores and housing systems with liquid manure or deep litter.

Methane emissions within agriculture are expected to fall by about 0.4 million tonnes CO₂ equivalents from 2001 to 2012 due to continued efficiency improvements in cattle farming and, to a lesser extent, to more biogas plants.

Nitrous oxide, N₂O

Agriculture is the biggest source of nitrous oxide emissions in Denmark. Of the total emissions of 28,200 tonnes in 2001, 25,500 tonnes or 91% came from agriculture. The nitrous oxide emissions from agriculture correspond to more than 8.0 million tonnes CO₂ equivalents.

Nitrous oxide may be emitted during microbial decomposition of organic matter. The process occurs in some types of manure stores and during conversion of minerally and organically bound nitrogen (e.g. manure and applied wastewater sludge) in the soil. Some of the leached nitrogen is also converted into nitrous oxide. Nitrogen entering the soil with fertiliser and manure and in plant residues is the main cause of nitrous gas emissions. In 2000 agriculture's main contribution to the nitrous oxide emissions consisted of a contribution of 40% from manure and a contribution of 26% from leaching³.

Ammonia volatilization contributes to the greenhouse effect because some of the ammonia nitrate ends up as nitrous oxide in the atmosphere. Ammonia volatilization into the atmosphere comes almost exclusively from agriculture. In 2000 the NH3-N emissions from agriculture were slightly more than 84,000 tonnes, with a nitrous oxide contribution corresponding to 4% of agriculture's nitrous oxide emissions⁴. Ammonia volatilizes from manure, fertiliser, sludge, crops and treatment of straw with ammonia.

The emissions occur during handling of manure in animal housing, during application of manure, and from grazing animals.

Implemented policies and measures with effect on the N₂O emissions

Nitrous oxide emissions in agriculture are expected to fall by about 2.7 million tonnes CO₂ equivalents, or 26%, in the period from 1990 to 2008-12. The implementation of the Action Plans for the Aquatic Environment will be the main contribution to this reduction.

Action Plan for the Aquatic Environment I and II and Action Plan for Sustainable Agriculture

One of the main purposes of Action Plan for the Aquatic Environment I and II and the Action Plan for Sustainable Agriculture was to reduce agriculture's emissions of nitrogen to the aquatic environment.

The action plans have been implemented as regulation of farmers' behaviour. The Action Plan for the Aquatic Environment I was initiated in 1987 and The Action Plan for Sustainable Agriculture in 1991. These action plans included particularly requirements concerning winter green fields and better utilisation of manure.

The Action Plan for the Aquatic Environment II from 1998 contained a number of additional measures, including re-establishment of wetlands, afforestation, agreements on Environment friendly Agricultural Measures, organic farming on an additional 170,000 ha, improved use of fodder, reduced animal density, use of catch crops, reduced fertilisation norms and stricter requirements concerning the use of nitrogen in manure. The aim was to reduce nitrogen leaching by 100,000 tonnes/year up to the year 2003⁵.

These action plans have, in particular, reduced the emissions of nitrous oxide. There have presumably also been small effects on methane emissions from manure stores, particularly as a consequence of increased use of anaerobic fermentation of manure in biogas plants. The increased use of catch crops, larger areas with organic farming and re-establishment of wetlands must also be expected to lead to increased storage of carbon in the soil.

Most of the changes in nitrous oxide emissions from agriculture in the period since 1990 can be attributed to these action plans. On this basis, the reduction in nitrous oxide emissions can be calculated as 1.2 million tonnes CO₂ equivalents/year in 1995, 1.8 million in 2000 and 2.7 million in 2005. There are no estimates of the effect on carbon storage in the soil.

Ammonia Action Plan

Ammonia emitted from agriculture will stimulate emissions of nitrous oxide when it is deposited in other ecosystems. Reducing ammonia evaporation will therefore also result in a reduction of nitrous oxide emissions. In 2001 an ammonia action plan was adopted. This, together with Action Plan for the Aquatic Environment I and II, will reduce ammonia volatilization by 15-20,000 tonnes N/year. This means that ammonia volatilization in agriculture should be reduced from about 90,000 tonnes N in the middle of the 1990s to about 75,000 tonnes N in 2004.

The measures covered by the Ammonia Action Plan are:

1. optimisation of manure handling during housing for cattle, pigs, poultry and fur animals, rules on covering stores of solid manure and liquid manure tanks
2. ban on broad spreading of manure
3. ban on top dressing and reduction of the time from field application of manure to incorporation
4. ban on ammonia treatment of straw.

It is estimated that these measures will together result in a reduction of nitrous oxide emissions corresponding to 34,000 tonnes CO₂ equivalents/ year in 2010. Here, the shorter time from application to incorporation has the biggest effect - 13,000 tonnes CO₂ equivalents/year⁶.

Ban on burning of straw

The purpose of the ban has been to reduce air pollution from burning of straw. The ban has resulted in more carbon being returned to the soil and greater use of straw as a fuel. Both uses will result in a net reduction in CO₂ emissions. Not burning straw prevents the methane and nitrous oxide emissions associated with the burning. On the other hand, there are some emissions of nitrous oxide in connection with the return of nitrogen to the soil when the straw is mulched.

The measure works by regulating behaviour, and the ban was introduced in 1989. The measure was implemented in the form of a statutory order under the Environmental Protection Act, and compliance is monitored by the local authorities. There are no estimates of the effect on greenhouse gas emissions.

CO₂

The green tax package and the grant scheme for energy savings in the business sector are resulting in energy savings and thus a reduction in CO₂ emissions from use of energy in agriculture.

Implemented policies and measures with effect on the emissions and the removals of CO₂

The aim is to increase use of biomass for energy purposes by establishing power stations and CHP plants using this fuel.

Straw as a fuel will substitute fossil fuels but will also reduce the amount of carbon returned to the soil. The latter may result in less carbon storage in the soil. At the same time, less nitrogen will be returned to the soil, which will mean a small reduction in nitrous gas emissions from the soil.

In 1990, 720,000 tonnes of straw were used for energy purposes and, in 2000, 900,000 tonnes. However, the use of straw for energy purposes has negative impacts on carbon storage in the soil and presumably on the soil's fertility⁷.

Compared with ordinary grain cultivation, it is calculated that cultivation of perennial energy crops corresponding to production of 5 PJ calorific value could reduce CO₂ emissions by 285,000 tonnes/year from substitution of fossil energy, 75,000 tonnes/year from carbon storage in soil, 10,000 tonnes/year from energy saving in cultivation of the crops and 30,000 tonnes/year from reduced nitrous oxide emissions⁸.

Forestry is important due to its CO₂ sequestration and emissions being a consequence of trees growing, respiring and decomposing. An average Danish forest contains a considerable store of CO₂ absorbed from the atmosphere. When new forests are established, new CO₂ stores are created. Afforestation is therefore a useful climate policy instrument.

Table 4.8
Afforestation area and CO₂ sequestration since 1990 and forecasts9 for selected years in the next 18 years

Look here!

Calculating the total CO₂ accumulation in forests is complicated. Almost all existing forests are established for wood production, e.g. logs and timber. Whether there are netemissions or net-sequestration of CO₂ from an existing forest depends on many factors, including it's age and species distribution, and the management regime applied.

Compared with other sectors, forestry has very low energy consumption. Green accounting and environmental management are being developed in the sector, partly with a view to determining whether the use of fossil fuels can be reduced.

The national forest programme provides for considering the potential of establishing economic incentives for increasing CO₂ sequestration in forests within the framework of the Kyoto Protocol. Such meausures should be implemented without undermining the Protocol's environmental integrity or counteracting established measures in support of sustainable forest management. The same should also apply to forest projects in connection with CDM and JI. The forests are managed with a view to multiple-use and sustainability, and carbon sequestration is one of several objectives. The policy objective most likely to increase carbon sequestration is the 1989 target to double Denmark's forested area within 100 years.

There are several measures aiming at achieving this objective. Firstly, a government subsidy scheme has been established that supports private afforestation on agricultural land. Secondly, also state afforestation is taking place, and thirdly some private afforestation is taking place without subsidies.

Primarily the CO₂ balance is affected by these measures. Forests raised on agricultural land accumulate far more biomass than the previous agricultural land-use. The forest biomass contains about 50% carbon, which is absorbed as CO₂ through photosynthesis. Probably, additional carbon is stored in the organic matter in the soil due to a larger supply of dead organic matter and the absence of soil preparation. The effect of afforestation on other greenhouse gases, such as nitrous oxide and methane has not been properly clarified. However, the acidification of nitrogen-rich former agricultural land may stimulate the formation of nitrous oxide, and blocking of drains after afforestation and the resulting water stagnation could increase methane emissions. Increased methane and nitrous oxide emissions could counteract the positive effect of afforestation on CO₂ sequestration. However, since sufficient information is still unavailable on changes in the methane and nitrous oxide emissions, analyses of the consequences are only carried out for CO₂.

The Danish Forest and Nature Agency is responsible for policies on afforestation on private agricultural land and on state-owned land. Through 1990-2002 subsidies were provided for 11,000 ha of private afforestation on agricultural land, catering for an extra sequestration of 68,000 tonnes CO₂. The cost of this afforestation was DKK 620 million. At a discount rate of 6%, the economic shadow price per tonne sequestered CO₂ is DKK 641 without side-effects and DKK 566 with sideeffects. At a discount rate of 3%, the shadow price is DKK 303 without side-effects and DKK 237 with sideeffects. The side-effects of afforestaion are linked to recreational value, groundwater protection and other factors.

The state, counties and municipalities have established about 5,500 ha of new forest since 1990. Only little is known about private afforestation without subsidies. It is assumed that about 600 ha are planted annually.

The annual quantities of CO₂ sequested as a consequence of subsidised private afforestation, public afforestation and the total afforestation are summed up in table 4.8.

Carbon sequestration in trees after afforestation is calculated by a simple model. Sequestration is obtained as the planted area multiplied by the carbon absorption for the age class of the trees. The absorption is calculated by using Danish increment tables for Norway spruce, as representative of conifers, and oak, as representative of deciduous trees⁹.

Table 4.9
Instruments and measures to reduce the emission of greenhouse gases in the domestic sector

The areas in table 4.3 for the period 1990-2001 are based on the evaluation of the afforestation programme carried out in the period¹⁰ together with a national forest inventory carried out recently¹¹. The areas for 2005- 2020 are based on a slightly revised projection¹². Afforested areas do not include plantations of Norman Christmas trees in short rotation on agricultural land.

The quantities of carbon are obtained by estimating the carbon content of the woody biomass using relevant conversion factors. The stem biomass for conifers and the total above-ground woody biomass for deciduous trees are converted into total aboveground and belowground biomass by multiplying with an expansion factor. An expansion factor of 2 is used, which is somewhat higher than the expansion factors used for forests planted before 1990 - 1.8 for conifers and 1.2 for deciduous trees. The reason for this is that the expansion factor depends on age.

The stem biomass thus constitutes a very small part of the total biomass in entirely young trees. The expansion factor therefore decreases exponentially towards a value between 1 and 2 as the trees grow older¹³.

Since there are neither Danish expansion factors nor agedependent expansion functions, the expansion factor of 2 is being used until better methodologies are available. The total biomass is subsequently converted into tonnes dry matter using the conversion factors 0.38 tonnes dry matter m-3 for conifers and 0.56 tonnes dry matter m-3 for deciduous trees¹⁴. The quantity of carbon is calculated by multiplying with the conversion factor 0.5 tonnes C/tonne dry matter. Carbon sequestration in products can be included in the calculations, but the figures presented represent only the quantity of carbon that is sequestered in the forest ecosystem. This quantity of carbon is stored in the total living biomass (incl. roots) of the trees and in slash. The quantity of sequestered carbon is summed by the model for the different year classes of afforested areas since 1990, providing the total carbon sequestration for the differently aged stands in specific years. Studies of soils in a time series of afforested stands have shown that, compared with the biomass carbon pool, there is no great change in the soil carbon pool during the first 30 years after afforestation¹⁵. It is assumed in the models that the growth of the trees correponds to site index 2 (on a scale decreasing from 1 to 4), and that there is a ratio of 1 to 3 between the area afforested with conifers and deciduous trees¹⁶.

Afforestation offers many other benefits in addition to carbon sequestration. Besides being valuable for outdoor recreation it provides valuable ground water protection and protection of habitats for fauna and flora. Forest is also a highly valued type of nature in terms of cultural values and landscape amenity. In addition to carbon sequestration, afforestation thus contributes to a wide range of values. The above-mentioned shadow price for sequestration of carbon includes side-effects due to, for example, outdoor recreation.

The continued growth of new forests will provide for carbon sequestration on a long-term basis. If the objective of doubling the Danish forested area within 100 years is achieved, the new forests will sequester about 250 million tonnes of CO₂ over the next approximately 120 years. Owing to the legal protection of forest landuse, the sequestration will be permanent. If the objective of doubling the forest area is to be achieved, however, an enhanced rate of planting will be needed.

Danish forest policy is moving towards more near-to-nature forest management. In the long term, this change will increase carbon sequestration in existing forests.

The inventories of the total emissions and removals of greenhouse gases include the emissions of greenhouse gases from fuel sold for fishing vessels. The fishing vessels' contribution to greenhouse gas emissions consist primarily of CO₂. No special initiatives have been put in place concerning this, but the reduction in the number of fishing vessels in recent years has also resulted in a reduction in fuel consumption and thus also in emissions of CO₂.

4.2.5 Domestic sector

The domestic sector's contribution to greenhouse gas emissions, which was 4.4 million tonnes CO₂ equivalents in 2001, consists mainly of CO₂ (97%). There are also small emissions of methane and even smaller emissions of nitrous oxide.

CO₂

The CO₂ emissions come from households' energy consumption, which accounts for almost 30% of total energy consumption in Denmark.

The largest part of the energy consumption is used for heating homes, where burning of oil and natural gas results in a CO₂ emissions. A large part of the space heating is in the form of district heating (about 47%), which results in CO₂ emissions in connection with the production of district heat.

When district heat is produced at CHP plants or with CO₂-friendly fuels, such as natural gas and, particularly, renewable energy, there are big savings overall from use of district heating instead of individual heating based on, for example, oil-fired boilers. CO₂ emissions from the production of district heat are taken into account under the energy sector.

Danish households also have a substantial consumption of electricity, which also means CO₂ emissions from power stations. These emissions are taken into account under the energy sector. Most of the households' electricity consumption is used for electrical appliances and light sources, while just under 25% is used for electric heating. Consumption for electric heating has been decreasing in recent years as a consequence of the work of the Electricity Saving Trust, which has resulted in considerable conversion from electric heating to district heating and natural gas heating.

Households' transport consumption also results in emissions of CO₂. Unlike households' electricity and heat consumption, transport consumption is still increasing considerably.

Households' disposal of waste also contributes to emissions of methane from landfill sites.

The action being taken on households' waste and transport consumption is described in the sections on waste and transport. This section therefore concentrates on the possibilities of reducing the CO₂ emissions through savings in electricity and heating in households and the possibilities for conversion to more environment-friendly forms of heating. The possibilities for reduction in the public energy supply system are described in the section on the energy sector.

In 2001 the domestic sector used in all 156 PJ energy for space heating (climate adjusted) and 30 PJ electricity for appliances etc. The consumption for heating has been fairly constant for a number of years despite some growth in the number of households and increase in the area heated. Electricity consumption for appliances etc. has risen only slightly since the mid-1990s because the growth in the number of appliances has to some extent been balanced by the fact that appliances and lighting have been more energyefficient.

Implemented policies and measures

The EU's obligatory energy labelling scheme for electric appliances, which has gradually been expanded to include new groups of appliances, has been given high priority, and a number of initiatives have been carried out to spread knowledge of the scheme. In addition, work is going on with a voluntary labelling scheme for TVs, videos and office equipment with respect to standby consumption. The labelling schemes have had a considerable impact. Firstly, they work in themselves and, secondly, they have formed the basis for a number of campaigns etc.

The Electricity Saving Trust was established in 1997. Among the Trust's schemes is a grant scheme designed to encourage conversion from electric heating to district heating or natural gas in the domestic sector and the public sector. In addition, the Trust contributes to development, marketing and use of electricitysaving appliances.

Table 4.10
Policies and measures in the waste sector

The initiatives to promote savings in energy consumption for space heating include energy labelling of small and large properties, campaigns and labelling schemes for lowenergy windows, product-directed saving campaigns for efficient boilers and grants for energy savings for pensioners.

The grid, district heating and natural gas distribution companies are required to promote energy savings within their supply areas, and they are carrying out a number of campaigns, information activities, advisory work, etc. These activities are funded via the companies' tariffs. More general measures include regular increases in the CO₂ and energy taxes up through the 1990s. The increases have mainly affected households, helping to reduce their energy consumption.

As a consequence of the initiatives in the domestic sector, energy consumption for space heating is expected to fall slightly even though the number of m² housing is rising.

From 2001 to 2010, energy consumption for this purpose is expected to fall by 2%. Relatively speaking, oil consumption will be reduced most, namely by 20%, while electric heat consumption will be reduced by 8%. On the other hand, consumption of district heat, natural gas and biofuels will increase by some per cent. CO₂ emissions will thereby be reduced, particularly when district heat is produced with CHP or with CO₂ friendly fuels.

Electricity consumption for appliances is expected to increase slightly - by 3% - up towards 2012, compared with today's level, which is 30 PJ/year. Although efficiency improvements are expected in many appliances, electricity consumption for this purpose will not fall because households are acquiring more appliances.

Additional policies and measures

As follow-up on the climate strategy, new energy-saving initiatives are expected to be launched, including in the form of codes for products' energy efficiency. The actual implementation of the initiatives has not yet been decided. The extent to which costeffective energy savings etc. can be initiated will be assessed on an ongoing basis.

4.2.6 Waste

The waste sector's contribution to greenhouse gas emissions consists only of methane from decomposition of organic waste at landfill sites.

Methane, CH₄

Previous years' action in the waste sector has been based on "Action Plan for Waste and Recycling 1993- 97", which includes objectives concerning handling of waste up to the year 2000. The plan does not relate directly to the waste sector's contribution to methane emissions (CH₄), but includes a number of initiatives that are of relevance to waste products containing industrial gases (HFCs and SF₆), besides an objective concerning stopping landfilling combustible waste.

The previous government's waste plan,Waste 21, which covers the period 1998-2004, does not relate directly either to the waste sector's possibilities for contributing to solution of the problem of greenhouse gas emissions. The plan is aimed at stabilising the total quantities of waste in 2004, increasing recycling and reducing the environmental burden from the environmentally harmful substances in waste, including the industrial gases. With respect to waste incineration, the objective is to adjust incineration capacity to what is absolutely needed, to ensure best possible energy utilisation, maximum CO₂ displacement and regional selfsufficiency. The plan thus contributes indirectly to reduction of greenhouse gas emissions.

The objective in Waste 21 is for 64% of all waste to be recycled, 24% to be incinerated and not more than 12% deposited. That objective was already reached in the year 2000 according to the Danish Environmental Protection Agency's Waste Statistics 2000 (ISAG). Total waste in that year amounted to about 12.8 million tonnes.

The present government has initiated the preparation of a replacement for Waste 21 in the form of a waste strategy for the period 2005-2008. The strategy is expected to go before the Folketing in May/June 2003.

Implemented policies and measures

As a consequence of the ban on landfilling combustible waste from 1 January 1997, methane emissions from Danish landfill sites will fall in the years ahead.

Calculations show that in 2012 the methane emissions will be 47,600 tonnes, corresponding to a 30% reduction in relation to the maximum methane emissions in 1996/1997.

According to the Danish Energy Authority's inventory "Biogas, Production, Forecast and Target Figures", there were in all 25 biogas plants in Denmark in the autumn of 2002. 10,000 tonnes of methane are recovered yearly from these plants. For comparison, only 1,700 tonnes of methane were recovered in 1990.

As a consequence of the new landfilling strategy, only a few biogas plants are expected to be established in the period up to 2012. The maximum quantity of methane recovered is expected to be about 12,000 tonnes in 2002/2003. Thereafter, the quantity of methane recovered is expected to remain at the same level for some years and then to fall steadily over a long period of years.

On the basis of the abovementioned net emissions of methane (methane produced less methane recovered) from Danish landfill sites are calculated to be 62,400 tonnes in 1990, rising to 65,500 tonnes in 1994, and then falling steadily to 38,500 tonnes in 2012. The average annual net methane emissions in 2008-2012 correspond to about 0.9 million tonnes CO₂ equivalents.

The total quantity of waste incinerated rose from 2,216,000 tonnes in 1994 to 3,221,000 tonnes in 2001, i.e. an approximately 45% increase. The energy produced from the incineration plants is included as part of the renewable energy production in the Danish energy statistics. The international greenhouse gas inventories include greenhouse gases from incineration of the waste's content of oil-based products, such as plastics.

In accordance with the objectives of Energy 21 and Waste 21, efforts are being made to design the incineration plants for maximum energy utilisation.

Besides the direct effect of waste handling on greenhouse gas emissions, the emissions are also affected indirectly through recycling of paper, cardboard, etc. which means less energy consumption and thus less CO₂ emissions during production of new products. With increased recycling of organic waste in biogas plants and use of the methane in biogas engines it is important for the methane emissions from the engines to be reduced either via development of technology or by flaring the flue gas.

The implementation of the government's waste plans and achievement of the objectives set in this area have necessitated the use of a wide range of policies and measures. An amendment of the Statutory order on Waste in 1996 introduced a municipal obligation to refer combustible waste for incineration (corresponding to a ban on landfilling combustible waste). As a result of this instrument, large quantities of combustible waste that used to go to landfill sites are now either recycled or used as fuel in Denmark's incineration plants.

Besides the traditional regulation via legislation, statutory orders, and circulars, the waste sector is regulated by means of a range of policies and measures, including taxes and charges, grant schemes and agreements.

Since the introduction of the waste tax in 1993 the tax has been differentiated to reflect the prioritisation of the different forms of treatment. It thus costs most to deposit waste, less to incinerate it and nothing in tax to recycle it. The size of the tax thus provides an incentive to recycle as much of the waste produced as possible and to use non-recyclable, combustible waste as fuel in energy production instead of depositing it at a landfill site.

Weight-based taxes (e.g. on various packaging, carrier bags and PVC film) encourage a reduction in packaging consumption and thus the quantities of waste. The weightbased tax is based on an index that reflects the environmental burden of the materials used.

Besides the waste tax, which the local authorities collect to finance the public waste treatment, increasing use is being made of fees to finance, for example, return agreements for special waste fractions, including tyres and lead accumulators. The fees are used in this context to finance collection and recycling of the waste.

Under the grant programme "Programme for Cleaner Products etc.", grants are made for projects that reduce the environmental burden in connection with development, production, sale and use of products or in connection with the handling of the waste that is generated during the product's entire life cycle. Grants can also be made for waste projects aimed at reducing the problems in connection with waste disposal.

4.3 Energy policies and measures in Greenland

Until the publication of the Greenland Energy Plan 2010 in 1995, the all-important energy policy objectives in Greenland were security of supply and the energy policy guidelines from 1986, the main focus of which was hydropower.

With Energy Plan 2010, the Home Rule presented a complete review of the energy sector and an action plan for its development for the first time and set up a more differentiated main energy policy objective of "establishing an energy supply that does not compromise security of supply and that ensures the least possible economic and environmental burden for society and the other energy players."

Both before and since 1995, policies and measures have been adopted and implemented in the energy sector that have reduction of greenhouse gas emissions as one, although not in most cases the main, objective. Some of the most important measures are described below.

Act on Energy Supply

With adoption by the Landsting of the Act on Energy Supply in 1997, Greenland got for the first time legislation that deals with energy supply in a broad perspective, since it covers electricity, heat and fuel supply. At the same time, it is the first time that energy efficiency improvement and energy savings have been covered by legislation.

This Act confirms Energy Plan 2010's main objective of promoting the most economic and environment friendly energy supply. It is stated in the Act that the energy supply shall be planned with a view to economising and saving in energy consumption, the highest possible level of security of energy supply, efficient improvements in the production and supply system and cleaner energy production.

Use of hydropower for energy supply

Since the 1970s the Home Rule has been interested in using hydropower for energy supply. Up through the 1970s and 1980s systematic studies of possible hydro power potentials were carried out. With the presentation of the energy policy guidelines in 1986, it was agreed that hydropower should be a bearing element of the future energy supply system. The first hydropower plants, taken into use in 1993, supplies Nuuk with electricity. Since it was commissioned, the plant has resulted in an annual saving of more than 20,000 m³ oil, which has resulted in a reduction in CO₂ emissions of around 55,000 tonnes, or about 10% of the total CO₂ emissions in Greenland.

A hydropower plant to supply Tasiilaq is under construction. It will go into use in 2004. The expected oil saving with this hydropower plant is 1,300 m³, corresponding to 3,446 tonnes CO₂ per year. A third hydropower plant is expected to be built within the next couple of years to supply Qaqortoq and Narsaq in South Greenland, with displacement of oil corresponding to 4,800 m³. Greenland also has a 10-year plan for further expansion of hydropower.

Waste incineration

Waste incineration plants have been built in three villages and in a number of small communities with waste disposal as the main objective.

At all three plants in the villages, some of the surplus heat from the incineration process is used for district heating. A further three incineration plants are under construction in other villages. There, the heat will also be used for district heating.

The existing waste incineration therefore to some extent replaces fuel oil and results in an unmeasured reduction of methane emissions that would occur if the waste were deposited at landfill sites.

Sector Programme for Renovation with an Environment and Energy Improving Effect in Greenland 2000-2003

In 1999 the Home Rule and the Danish State entered into an agreement on renovation of buildings and supply plants. The agreement covered renovation projects with a positive environmental and energy effect. Projects carried out under the programme include renovation of electricity and heat production plants, including supply grids, revision of the building regulations, renovation of buildings, including the climate envelope, preparation of a new energy plan and behaviourregulating measures. All the initiatives are expected to help reduce energy consumption and, consequently, CO₂ emissions.