Four months to go before launch of the Korean ETS

In spite of opposition from industrial and business groups, the Korean government has affirmed its commitment to the upcoming emission trading scheme scheduled in January 2015 (press release). The nation’s controversial tax imposing on vehicle emissions has however been delayed to the end of 2020 (press release). The government is currently exploring options to help firms prepare for and comply with the system and alleviate potential economic effects. According to the Ministry of Strategy and Finance, the total allowance cap in the first period (2015-2017), previously set at 1.64 billion tCO2e will be increased to the level of 2013-14 emissions.  Further, the overall target for the period 2015-2020 will be reviewed, as well post 2020 goals. The draft National Allocation Plan (Korean) includes five sectors: power generation, industry, public water and waste utilities, buildings, and transport (mainly domestic aviation). Of the over 800 companies covered by the GHG and Energy Target Management Scheme (TMS), around 500 entities will be covered by the ETS.   

Korea’s Environment Minister Yoon Seong-kyu will talk about the upcoming ETS at the ICAP-IETA High-Level Carbon Pricing Dialogue in New York, 24 September 2014.