FinSoul believes that South Korea has just announced that it will launch a pilot scheme for carbon trading as early as the later part of next year, in a bid to encourage a national reduction in greenhouse gas emissions.
A Ministry of Environment statement released early this week said that the Korea Exchange (KRX), the national bourse, will host the carbon emissions trading, also know as a cap-and-trade program as early as late next year.
The carbon trading program, FinSoul understands, will see participating organizations being issued with emission permits, a right to emit a government set limit of greenhouse gas emissions and then being able to trade any remaining allowances for profit or purchase extra allowances from those who emit less than their limit.
The Ministry has announced that there will be at least 641 organizations participating in the initial 3 year pilot scheme, including 14 local governments, 446 public organizations and 166 retailers, all aiming to cut carbon emissions by 1 to 2% compared to the annual average from 2005 to 2007. It added that preparations for the derivatives transactions on the country’s main bourse are currently underway.
FinSoul believes that the Asia- Pacific region is fast becoming a carbon trading scheme leader with Singapore and New Zealand already committed to carbon trading, and Hong Kong, Australia and Japan also trying to find similar schemes.
