South Korean experts on carbon emission trading on Tuesday called on the government to delay the start of its system slated for 2015, saying it may hurt local industry.
The system requires companies to take action to reduce greenhouse gas emission levels or buy rights to release gases if they are unable to do so. Companies can also sell emission rights and receive cash payments.
“It is necessary to rearrange the schedule to enforce the carbon emission trading system as it may have a negative impact on the environment and industry,” said Roh Jong-hwan, head of Korea Carbon Finance Inc., a carbon trading system operator.
His remarks came out in a forum hosted by the Korea Chamber of Commerce and Industry.
“The enforcement of an impractical system may cause companies to pay enormous expenses as demand for carbon emission rights have tumbled due to a plunge in the manufacturing operation ratio,” Roh said.
If the government introduces the system in 2015 as scheduled, the growth rate of the gross domestic product may decrease by 0.23-0.47 percentage point in 2020, according to Roh Dong-woon, head of Green Growth Headquarters under the Korea Energy Economics Institute.
The expense for the right to release 1 ton of carbon will be between $30 and $40, he said. (Yonhap News)
