Isra-Mart srl:Reports: South Korea carbon trading scheme to launch in 2015

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Isra-Mart srl news:

South Korea's long-awaited emissions cap-and-trade scheme will come into effect from the start of 2015, according to local media reports.

Quoting senior government officials, the Korea Economic Daily reported over the weekend that the government is poised to present a revised carbon trading bill that will essentially water down previous proposals following intense lobbying from industry groups.

The bill, which still requires parliamentary approval, would result in a national emissions trading scheme coming into effect from 1 January 2015, two years later than originally planned.

The paper also quoted the prime minister's office as saying that the revised bill "increased [the] percentage of free carbon allowances to reduce burdens on companies". The percentage of free allowances is now expected to rise from 90 to 95 per cent of all allowances.

South Korea has won plaudits from green businesses and clean tech firms for investing over 80 per cent of its economic stimulus package in low-carbon projects and committing to cut emissions by 30 per cent against business as usual levels by 2020.

However, the government has consistently struggled to secure support from industry for its proposed emissions trading scheme, which has been repeatedly delayed and watered down. Last month, business groups stepped up calls for a moratorium for the plans, arguing that South Korea's export-led economy would be put at a competitive disadvantage as a result of the scheme.

The news comes just days after the Australian government announced that it would move to introduce some form of carbon pricing mechanism by mid-2012, despite continued resistance from the opposition Liberal party and some industrial groups.