South Korea launches its Carbon Marketplace, the second largest in the world
hace 11 year
Aiming to reduce greenhouse gas emissions by 30 % by 2020, the South Korean government created a carbon market that will impose emissions limits on the country's 525 largest companies, making it the second largest in the world.
Under this market, emission permits have been limited for the next three years to South Korean power generators, such as petrochemical companies, steel companies, automobile manufacturers, electromechanical companies and airlines.
The government has set the total amount of emissions allowed for the next two years at 1,687 million tons of carbon dioxide equivalent. Any company that emits more than it is allowed will be required to purchase allowances from other market participants.
On the first day of operation, a first batch of permits traded for 7,860 won ($ 7.26 each) before the price rose to 8640 won ($ 7.97 each). These prices are similar to those being quoted in the European market, the world's largest. On the first day of trading, four bids totaling 1,040 permits were submitted through the Korea Exchange (KRX), which hosts the trade.
“I hope this market will help companies effectively reduce carbon emissions and help the growth of the green industry,” said KRX Chairman Choi Kyung. «The KRX will make efforts to develop the carbon market in the medium and long term, so it will not focus on the operation of the market in the short term.”.
Currently, South Korea is the second country in Asia (after Kazakhstan) to launch a nationwide emissions market, although regional systems are operating in China and Japan. The EU market will be eclipsed by China's national system, which should be fully operational by 2020.
Source: allcot.com
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