S. Korea considers cap-and-trade scheme to control greenhouse gas emissions

SEOUL, Dec. 25 (Yonhap) -- The government is considering the adoption of a
cap-and-trade emissions trading scheme to control the release of greenhouse gases
into the atmosphere, official sources said Friday.
Sources at the finance and knowledge economy ministries said it may move to
introduce legislation in late 2010 to put an "emissions cap" on specific
companies as the country moves to reduce its overall greenhouse gas output.
Under this scheme that may go into effect in stages starting in 2011, a company
that exceeds its allocated maximum limit must buy emissions rights from other
businesses and organizations. Such steps will provide incentives for businesses
to take active measures to reduce emissions levels that have been cited for
causing worldwide global warming.
In November, Seoul said it wants to voluntarily reduce emissions by 30 percent
from the business as usual (BAU) level by 2020, as opposed to 2005. This
translates into a cut of around 4 percent if there are no sudden fluctuations in
economic growth or global energy prices.
Policymakers, however, said the steel, oil refining and chemical industries may
be exempted from this rule for the time being since they cannot take immediate
steps to cut emissions without halting operations.
They said a detailed review has been commissioned to look into the feasibility of
implementing limits. This includes examining similar measures taken by the
European Union, the United States and Japan.
The review is expected to focus on the adverse impact an emissions cap could have
on national competitiveness and determine what areas can make cuts first.
Energy generation and heavy industries release the most greenhouse gases in the
country, but transportation, homes and shops contribute to the total.
Without going details, the government said it is looking at measures to monitor
emissions levels and penalize those who fail to meet their designated targets.
yonngong@yna.co.kr
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