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S Korea to start carbon emissions trading late next year

0 CommentsPrint E-mail Xinhua, December 28, 2009
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South Korea announced Monday it will launch a pilot greenhouse gas emissions trading scheme as early as late next year in a bid to encourage carbon emissions reduction.

The Ministry of Environment said in a statement the Korea Exchange (KRX), the country's bourse, will serve as a platform for carbon emissions trading, also known as cap and trade, starting as early as late next year.

Under the program, participating organizations will be issued emission permits, a right to emit a certain amount that should not exceed the limit set by the government, and can trade remaining allowances or buy them from those who emit less.

A total of 641 organizations will be participating in the three-year pilot scheme, including the country's 14 local governments, 446 public organizations, 29 workplaces and 166 retailers, with the goal of cutting 1 percent to 2 percent of carbon emissions compared to the annual average from 2005 to 2007, according to the ministry.

Preparations for derivatives transactions on the main bourse are currently underway, it said.

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