US Edition The new status took effect as Greenland celebrated its national day, six months after 75 per cent of voters approved a referendum to hand more power to the local government and take control of the island's vast natural resources.
Festivities began with a flag-raising ceremony, while Denmark's Queen Margrethe and its prime minister, Lars Loekke Rasmussen, attended the event.
Denmark granted Greenland limited sovereignty when its parliament approved home rule in 1979.
But the self-rule status, agreed after years of negotiations, gives the island of 57,000 inhabitants more control over its gas, gold and diamond reserves.
US scientists believe Greenland's northern tip is especially rich in oil and gas and they say global warming could actually help unlock the untapped wealth and provide a solid foundation for an independent economy.
If it proves to be "sufficiently large to prop up the island's economy", Greenland will be well on the road to full independence from Denmark, said Lars Hovbakke Soerensen, a historian at the University of Aarhus.
Greenland, which holds 10 per cent of the world's freshwater reserves, is one of the areas most under threat from global warming, which in turn will affect its lucrative fishing industry.
That will force political leaders to look underground in a bid to diversify the economy and cut reliance on its former colonial master for funding.
Under the self-rule agreement, Greenlanders will be recognised as a distinct people with the right to self-determination and Greenlandic will become the territory's official language.