ID :
19963
Wed, 09/17/2008 - 14:20
Auther :
Shortlink :
https://oananews.org//node/19963
The shortlink copeid
S. Korea sets up carbon exchange company By Lee Joon-seung
SEOUL, Sept. 17 (Yonhap) -- South Korea will set up a dedicated carbon exchange company that can help regulate the country's greenhouse gas emissions, the government said Wednesday.
The Ministry for Knowledge Economy which is responsible for energy policies, said
the company tentatively named Korean Carbon Finance (KCF) will be set within the
month and start operations with 5 billion won (US$4.4 million) in start-up
capital.
It said Korea Investment and Securities Co. will be the main operator with
KT&G, Hu-Chems Co. and Foosung Co. interested in investment or direct
participation in greenhouse gas reduction projects managed by KCF.
The new company will facilitate transactions of greenhouse gases that are
released by local businesses engaged in the UN sponsored clean development
mechanism (CDM). It will also trade Korea certified emission reductions (KCERs)
points that have been supervised by the Korea Energy Management Corp. since July
2005.
The CDM system allows companies that have reduced greenhouse emissions to sell
the portion they cut to others, translating it into extra earnings.
The ministry has been issuing KCER certificates and points as of December for
companies that have agreed to reduce greenhouse gasses.
As of late last year 34 companies have signed on to the program, with 2.05
million tons of greenhouse gases being cut through 103 projects.
The KCF, in addition, will make direct investment to cut down on greenhouse gases
and provide research, consulting and arrange financial support.
"The main point is to provide a one-spot service to businesses that want to
help combat global warming," a ministry official said. He added, to breathe
life into the business, the government will buy excess greenhouse gases that are
not traded.
South Korea is currently not obliged to cut back on greenhouse gases under the
Kyoto Protocol but may have to join the global effort after 2013.
The Protocol, adopted on Dec. 11, 1997, is an extension of the international
Framework Convention on Climate Change and went into effect on Feb. 16, 2005. Of
its over 180 signatories, Japan and 36 countries from the European Union are
Annex 1 countries that have pledged to cut greenhouse gases.
The Ministry for Knowledge Economy which is responsible for energy policies, said
the company tentatively named Korean Carbon Finance (KCF) will be set within the
month and start operations with 5 billion won (US$4.4 million) in start-up
capital.
It said Korea Investment and Securities Co. will be the main operator with
KT&G, Hu-Chems Co. and Foosung Co. interested in investment or direct
participation in greenhouse gas reduction projects managed by KCF.
The new company will facilitate transactions of greenhouse gases that are
released by local businesses engaged in the UN sponsored clean development
mechanism (CDM). It will also trade Korea certified emission reductions (KCERs)
points that have been supervised by the Korea Energy Management Corp. since July
2005.
The CDM system allows companies that have reduced greenhouse emissions to sell
the portion they cut to others, translating it into extra earnings.
The ministry has been issuing KCER certificates and points as of December for
companies that have agreed to reduce greenhouse gasses.
As of late last year 34 companies have signed on to the program, with 2.05
million tons of greenhouse gases being cut through 103 projects.
The KCF, in addition, will make direct investment to cut down on greenhouse gases
and provide research, consulting and arrange financial support.
"The main point is to provide a one-spot service to businesses that want to
help combat global warming," a ministry official said. He added, to breathe
life into the business, the government will buy excess greenhouse gases that are
not traded.
South Korea is currently not obliged to cut back on greenhouse gases under the
Kyoto Protocol but may have to join the global effort after 2013.
The Protocol, adopted on Dec. 11, 1997, is an extension of the international
Framework Convention on Climate Change and went into effect on Feb. 16, 2005. Of
its over 180 signatories, Japan and 36 countries from the European Union are
Annex 1 countries that have pledged to cut greenhouse gases.
