Isramart : Seoul to test-run carbon trading system

Isramart news:
Seoul City will begin test-operating a carbon emission trading system in April in a bid to contribute to reducing greenhouse gas emissions.

The metropolitan government will run it for 54 public organizations in Seoul and encourage the private sector to voluntarily join the reduction efforts during the three-year trial operation period.

Based on the amount of energy public organizations in Seoul consumed for heating or cooling their buildings from 2007-2008, the city will set a standard emission volume for each organization.

The city will offer to the participating organizations carbon emission rights free of charge, which will allow them to emit 90 percent of their standard emission volume and enable them to seek a 10 percent emission reduction.
The "virtual" trade of emission rights will take place online quarterly and the city will offer monetary incentives to organizations that perform well.

Given that the 54 organizations emit roughly 380,000 tons of carbon dioxide per year, if all meet the 10-percent reduction goal, it could lead to an annual reduction of about 38,000 tons of carbon dioxide -- creating the same effect of planting more than 11 million nut pine trees.

To help the organizations meet the reduction goal, the city will carry out a set of measures aimed at enhancing energy efficiency, such as installing light emitting diode lighting systems in public buildings.

The city seeks to enact an ordinance governing the operation of the carbon emission right trading in the latter half of this year. To enhance public awareness, it has since June last year published promotional material on carbon emission trading.

Some 20 centers for trading carbon emission rights, including three in China, eight in Europe and three in the United States, are currently in operation in major cities around the world.

According to data released in May last year by the World Bank, global carbon emission trade amounted to $126 billion in 2008 and is expected to increase to $1.45 trillion by 2020.