More than 500 South Korean enterprises that have been placed under the government’s carbon dioxide emission trading scheme will be limited to release less than 1.69 billion tonnes of greenhouse gases between 2015 and 2017.
The Cabinet on Thursday approved the plan, proposed by the Ministry of Environment, as the nation is scheduled to implement the emission restriction system on Jan. 1, 2015.
The quota for Korean businesses has been set at 1.687 billion tonnes over the next three years via consultations between the Korean government and major countries, as part of the nation’s pledge to join worldwide policies tackling global warming.
Any business that releases more than 125,000 tonnes of greenhouse gases per year is subject to the obligatory rule. In addition, a factory that emits 25,000 tonnes of greenhouse gases also comes under the restriction.
Under the collective cap, the Environment Ministry is poised to set the amount of CO2 emissions allowed for each company. It said that 526 companies and factories from 23 industrial sectors are obliged to abide by their emission cap.
“The 526 firms take up about 66 per cent of the nation’s combined greenhouse gas emission,” said the ministry.
The emission trading scheme requires each country and their businesses to reduce greenhouse gas emissions or to buy rights to release gases if they have difficulty meeting the levels set by the international community.
For Korea, a business that emits less than the cap will be entitled to sell the remaining amount to the Korea Exchange, while another firm that emits more than its cap will be allowed to buy the rights to do so through the main bourse KRX.
By sector, power generation and energy had the greatest cap with 738.5 million tonnes, steel with 305.7 million tonnes, petrochemicals with 143.7 million tonnes and cement with 128 million tonnes.
Out of the 1.687 billion-ton quota, the government will allocate 1.598 million tonnes to the 526 firms and set aside the other 89 million tonnes as a reserve.
According to the plan, the firms must reduce emissions on a gradual basis: 573.4 million tonnes in 2015, 562.1 million tonnes in 2016 and 559 million tonnes in 2017.
Korea, one of the world’s top 15 greenhouse gas emitters, announced in 2009 that it would reduce its greenhouse gas emissions by 30 per cent by 2020.
