Lawmakers in South Korea have passed legislation that will cap carbon emissions across the economy and put a price on carbon.
The emissions trading scheme was approved with strong bipartisan support in the National Assembly and makes the country the first in Asia and third in the Asia-Pacific region to enact such legislation.
The scheme will mandate cuts in greenhouse gases right across the economy, starting in 2015. It is being seen as an opportunity to improve energy efficiency in South Korea, which relies heavily on imports of LNG and oil to fuel its economy.
By trading carbon, South Korea is aiming to reduce emissions of CO2 by 30 per cent below business-as-usual by 2020.
“What is particularly impressive about this move by South Korea is that it was done with cross-party support, in the face of stiff opposition from big polluting industries,” said Jason Anderson, Head of European Climate and Energy Policy at WWF European Policy Office. “Despite being a highly industrialised country, South Korea clearly sees future competitive advantage in clean energy and low pollution technologies.”
The creation of an emissions trading scheme in South Korea opens up the possibility of links with other schemes, such as that in the EU. Korea’s scheme is part of a much larger “Green Growth” agenda being pursued by the South Korean government, which has seen almost €65 billion allocated in initiatives driving investment in clean technologies.
