Isramart : Preemptive Measures Needed in Anticipation of Tougher Carbon Reduction Rules

Isramart news:
The UN climate talks which ended in Copenhagen on Friday produced no legally-binding agreement on reducing greenhouse gas emissions, but only non-obligatory commitments that were not even ratified by the participating nations. Nevertheless, it is highly likely a global warming pact will be reached before the next climate summit, which will take place in Mexico City next year. The current Kyoto Protocol is set to expire in 2012, and as long as the world does not give up battling global warming, the international community has little choice but to come up with a legally-binding treaty.

President Lee Myung-bak said in his keynote speech in Copenhagen on Thursday that nations needed to take a "me first" approach in order to save the planet, and he highlighted Korea's efforts as an "early mover" in cutting greenhouse gas emissions despite the difficult task it presents for such an energy-intensive country. Korea has announced a bold plan to cut its carbon emissions over the next 10 years by 30 percent less than the level predicted for 2020, meaning emissions will drop from a projected 813 million tons to 569 million tons. This target is the highest goal recommended by the international community for countries that are not bound by the Kyoto Protocol.

If there is no choice but to reduce greenhouse gas emissions, then it is best to get started as soon as possible. Doing so will allow Korean businesses to get a head start in developing the technologies and building the experience needed to become globally competitive. In order to make this happen, the government must establish a system that will allow businesses to become early movers and take voluntary steps to cut their emissions.

Carbon trading or so-called "cap and trade" schemes are becoming increasingly popular around the world. Under such a scheme the government sets a limit or a cap on how much carbon can be emitted, and businesses or other groups are issued allowances or credits for emissions. Companies that exceed the cap of their allotted emission levels need to buy credits from ones that emit less. A bill that would set up such a scheme in Korea is currently awaiting ratification in the National Assembly.

While the scheme is being worked out the government should waste no time in introducing a program to recognize carbon reductions. Businesses that take the initiative and cut their emissions would be awarded credits by a certified agency and be allowed to trade their credits when the scheme is officially implemented. Without such efforts now, business that currently have the technology to cut their emissions may delay doing so in fear of losing out on credits later on. If Korea wants to get an early start in the global efforts to reduce carbon emissions, the government must come up with a way to recognize businesses' preemptive efforts to decrease their emissions.