South Korea’s emissions trading system opened on 12 January, expected to cover more than 500 companies in industries including cement. The scheme, which is said to be the second largest of its kind in the world, aims to contribute to the government’s plan to cut greenhouse gases by 30% from current levels by 2020. The total amount of allowed emissions for 2015 – 2017 has been set at 1.687 million t CO2e. Companies operating in emissions-intensive industries, such as power generator or steel manufacture, have been granted a fixed amount of permits for the next three years. Any companies exceeding those permitted emissions will have to buy allowances from others in the market.
According to reports, five deals went through on the first day of opening. An analyst with Thomson Reuters Point Carbon told press that they expect ‘modest volumes initially’. Prices are forecast to start at less than US$10, but rise to about US$30 in 2017.
China has begun a regional emissions trading scheme, which is scheduled to go national by 2020. Elsewhere in Asia, Kazakhstan has a national scheme and Japan is operating a regional system.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/13012015/south-korea-launches-emissions-trading-scheme-131/