More changes are expected within the next year or so due to the implementation of
the EU Emission Trading Scheme (ETS). As a result of the ETS, Denmark passed a
CO2 quota law3 in 2004. This law has not, however, been approved by the European
Commission yet. This law removes the CO2 tax from the process energy to
which the ETS applies. However, electricity consumption and fuels used for space
heating are still levied a CO2 tax. When the law is approved it will be in effect retroactively
from 1st January 2005.
1.3