Carbon credit system in 2015The government said yesterday it plans to start running carbon-trading systems in 2015 as Seoul joins global efforts to reduce greenhouse gases and tackle global warming.
The move is in line with President Lee Myung-bak’s policy of pursuing a green growth policy of lowering carbon emissions without undermining Asia’s fourth-largest economy.
As the world’s ninth-largest carbon emitter, Korea declared its bid to cut carbon emissions by 4 percent, a reduction from the levels seen in 2005 when it discharged 594 million tons of carbon dioxide. The cap-and-trade scheme would allow local companies to buy the right to discharge more gases, or sell their emission rights if they can cut their carbon footprints.
The system will affect businesses that release 125,000 tons of greenhouse gases per year. Individual plants that emit 25,000 tons of carbon dioxide and other gases will come under the new restrictions, according to the government. Korea plans to select an exchange market that will handle carbon-trading transactions as early as this year.
The Korea Exchange, which operates the main bourse, is vying with the state-run electricity distributor, the Korea Power Exchange, for the job.
The EU accounts for 76.4 percent of global transactions of carbon credits.