EVterm
Main Nations’ Carbon Emission Exchanges System
And Implication in South Korea
I. Introduction After Kyoto Protocol in 1997, the carbon emission has been issued in the World. The carbon market has rapidly grown based on Kyoto mechanism, such as CDM (Clean Development Mechanism).Actually, the main nations, such as EU, the United States, Japan, and China, has formed the greenhouse gas emission trading market. South Korea is a target country which will have to reduce the greenhouse gas since 2015. Therefore, this paper examines emission trading system in EU and China and it imply to South Korea.
II. European Union (EU) In 2005, EU has enforced EU-ETS(European Union Emission Trading System) which is the first greenhouse gas emission system in the World. It is based on “Climate Change-Towards an EU Post-Kyoto Strategy” in 1998. EU-ETS has also grown the largest emission trading market in the World. It deals with 46% reduction of greenhouse gas which is emitted from large emission facilities. There are participants who are 27 countries, 12,000 facilities, 4,000 companies on power and industry area. The Unit of EU-ETS is EUA(EU Allowance). 1EUA means a right that country could emit a ton of CO2 or other greenhouse gas, which is changed 1tCO2. Additionally, EU approves CER(Certified Emission Reduction), which is a unit of CDM, and ERU(Emission Reduction Units), which is a unit of JI(Joint Implementation). European Commission decides important aspect of EU-ETS planning, such as choosing target industry. On the other hand, the member nation of EU-ETS has autonomy and responsibility in each country, such as allocation volume of emission, allocation method, emission’s monitoring, verification, report, and supervision. Initially, EU-ETS selected that only CO2 is the trading target. At these times, the target gas is expanded to N2O, PFCs. The bounds of target industry were limited the company which emit a lot of CO2, such as power, petroleum refining, steel,
And Implication in South Korea
I. Introduction After Kyoto Protocol in 1997, the carbon emission has been issued in the World. The carbon market has rapidly grown based on Kyoto mechanism, such as CDM (Clean Development Mechanism).Actually, the main nations, such as EU, the United States, Japan, and China, has formed the greenhouse gas emission trading market. South Korea is a target country which will have to reduce the greenhouse gas since 2015. Therefore, this paper examines emission trading system in EU and China and it imply to South Korea.
II. European Union (EU) In 2005, EU has enforced EU-ETS(European Union Emission Trading System) which is the first greenhouse gas emission system in the World. It is based on “Climate Change-Towards an EU Post-Kyoto Strategy” in 1998. EU-ETS has also grown the largest emission trading market in the World. It deals with 46% reduction of greenhouse gas which is emitted from large emission facilities. There are participants who are 27 countries, 12,000 facilities, 4,000 companies on power and industry area. The Unit of EU-ETS is EUA(EU Allowance). 1EUA means a right that country could emit a ton of CO2 or other greenhouse gas, which is changed 1tCO2. Additionally, EU approves CER(Certified Emission Reduction), which is a unit of CDM, and ERU(Emission Reduction Units), which is a unit of JI(Joint Implementation). European Commission decides important aspect of EU-ETS planning, such as choosing target industry. On the other hand, the member nation of EU-ETS has autonomy and responsibility in each country, such as allocation volume of emission, allocation method, emission’s monitoring, verification, report, and supervision. Initially, EU-ETS selected that only CO2 is the trading target. At these times, the target gas is expanded to N2O, PFCs. The bounds of target industry were limited the company which emit a lot of CO2, such as power, petroleum refining, steel,