Korea Exchange will host nation’s carbon trading
The Korea Exchange (KRX) won the bid to host the South Korea’s emissions trading scheme, which will launched on 2015. KRX beat Korea Power Exchange in this competition.
South Korea’s emissions trading scheme is expected to become the world’s second biggest and it will cap greenhouse gas emissions from over 400 of nation’s biggest polluters, mainly power generators and manufacturers.
Firms will be given free permits by the government based on their historical emission levels, but must buy more in the market if their emissions exceed allocated levels. The amount of free permits given out will reduce over time.
The Korean government aims to limit emissions in 2020 at 30 percent below business-as-usual levels, and, for that reason, the market is going to be launched.
South Korea emitted 669 million tonnes of carbon dioxide equivalent in 2010, making it the world’s eighth biggest emitter.