• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 5 hours WTI @ 67.50, charts show $62.50 next
  • 3 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 4 hours Mike Shellman's musings on "Cartoon of the Week"
  • 9 hours Venezuela set to raise gasoline prices to international levels.
  • 14 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 28 mins Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 3 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 16 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 8 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 15 hours Corporations Are Buying More Renewables Than Ever
  • 4 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 20 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 5 hours France Will Close All Coal Fired Power Stations By 2021

South Korea Set to Launch the World’s Most Ambitious Emission Trading Scheme

A report compiled by Bloomberg New Energy Finance (BNEF) and Ernst & Young, states that South Korea’s new emissions trading scheme could be the most ambitious in the world, so much so that it actually appears impossible.

The cap and trade system, which will begin to take effect in 18 months time, will price carbon emission at $90 a tonne, with the aim of reducing the country’s emission by around 30 percent. Those are two massive figures!

Richard Chatterton, the leading analyst of carbon markets at BNEF, suggested that, “if the government implements the scheme without any changes, it will have major implications for Korean companies. A carbon price will lead to higher power prices and impose additional costs on industrial firms. The government is mitigating the impact for covered entities by handing out most allowances for free, but costs could still rise quickly.”

Related article: Politics Still Rules the Climate Change Debate in the US

The report believes that reducing the country’s emission levels by 30% before 2020 is far too ambitious, requiring a reduction of roughly 836 million tonnes of CO2 in five years. Such a number would require all existing coal plants to be replaced with new, clean natural gas plants, and renewable energy installations, as well as extra carbon capture and sequestration systems. In fact the report decided that the work needed actually exceeds the options available, making the target impossible to achieve.

Whilst the $90 a tonne carbon price seems likely, the reduction target will not be met.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News