Denmark said today it would reach its target for cutting greenhouse gas emissions by buying emission credits from central and eastern Europe.
Denmark expects to spend up to$3.6 billion to reach its commitments to the Koyoto protocol to cut carbon dioxide emissions (CO2) by 21 per cent by 2012.
But since 1990 Denmark's emissions have barely decreased at all, and if no measures are taken, the carbon dioxide emission would be 20-25 million tonnes above the target by 2012, corresponding to 25-30 per cent of Denmark's total greenhouse gas emissions.
Emmissions trading schemes are planned worldwide as countries look for ways to meet their Kyoto protocol commitments to curb emissions of greenhouse gases.
Under the terms of the European protocol, if countries find it too difficult to cut their pollution to reach the targets, they can buy the right to pollute from others whose emissions are below their target.
Such mechanisms can also be used within states by companies, meaning firms which produce renewable energy such as wind energy can sell credits to those unable to meet the required reductions.
Ireland is committed to capping greenhouse gas emissions at 13 per cent of their 1990 levels in the 2008-2012. By 2000, however, emissions were already 24 per cent above their 1990 level.
Earlier this year the Minister for the Environment, Mr Cullen, warned that the cost of meeting Ireland's commitments under the Kyoto Treaty could cost hundreds of millions of euro.