Updated August. 15, 2014 04:16
The Korean government has decided to implement the greenhouse gas emission trading system as planned from January 2015, in the teeth of opposition from the corporate sector. According to the Strategy and Finance Ministry and the Environment Ministry on Thursday, Finance Minister Choi Kyung-hwan met with Trade, Industry & Energy Minister Yoon Sang-jick, and Environment Minister Yoon Seong-kyu in a closed-door meeting and agreed to implement the cap and trade program as scheduled.
The cap and trade program refers to a policy where the government gives out quotas on the cap on total greenhouse gas emissions, which the company does not fill the quota or surpasses it, can trade the differential among companies. It is to be put into practice from January 1, 2015 under the Green Gas Emission Trading Act legislated in 2012.
Corporate opposition appears likely to intensify. In order for companies to prepare the cap and trade program, the government should have given public notice of its quota plans by June this year, but while pushing a delay in its implementation, the government has yet to complete the notification process. Accordingly, some companies are preparing administration litigation, citing defective procedure.
Meanwhile, the government has decided to push back the scheduled implementation timing to January 2015 for low carbon vehicle support system to impose taxes on automobiles that emit much greenhouse gas.