South Korea launches its carbon market

The first permit of the South Korea’s Emission Trading System was traded last Monday (12 Jan.), officially opening the first phase of the country’s carbon market. As a key element of the government’s strategy to reduce emissions by 30 percent below business-as-usual by 2020, the newly-launched ETS covers 525 among country’s biggest firms operating in the energy and industrial sectors.

According to Reuters, on Monday permits were traded between 7,86 and 8,64 South Korean won per tonne (€6.28 – 6.90) on the Korea Exchange for a total of 1,040 permits changing hand. Price forecasters at Thomson Reuters Point Carbon and ICIS had estimated that the permit price would rise to around $30 in 2017.

South Korean ETS represents the Asia’s first national carbon market and globally second in size to the European one. Other schemes in the region have been implemented by Kazakhstan along with the regional pilot experiences launched in China and Japan.

 

(Image: Skyline of (Seoul) Capital Area. Photo credit: Wikipedia)