Financial Soultions looks at how close South Korea is to becoming carbon trading hub for Asia?

Nov. 3, 2009 - PRLog -- As one of the globes fastest growing polluters, South Korea, has indicated that it has its eyes on becoming Asia's trading hub for carbon emission certificates and related products with its planned new carbon exchange beginning in 2011.

Tax breaks aimed at boosting renewable energy consumption and investment are one incentive the Korean government is considering, Financial Soultions has learned.

The UN’s clean development mechanism allows industrialized nations to invest in schemes in developing nations in order to earn certified emission reductions which can be traded for profit or used to offset CO2 targets as laid out under the Kyoto Protocol.

Also aiming for the regional market prize are Singapore, Australia, Hong Kong and India, with Singapore and Hong Kong looking strongest, Financial Soultions understands. Singapore has been trading primary CERs on the over the counter market and Singapore’s Asia Carbon Exchange, but has indicated it will have a fully operational carbon market in place before year end.

Korea's carbon exchange, set to test operations in 2011 and start trading in 2012, are, as with Australia, waiting for parliamentary wrangling over legislation to be resolved. Both nations are facing criticism from opposition regarding industry issues.

The delay of these protracted negotiations, Financial Soultions sources say, may be the edge one of the other competing nations needs to pull ahead and wrap up ownership of the title “Hub of Asian carbon trading.”

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