Korea legislates for emissions trading by 2015

The Republic of Korea, the world’s 15th largest economy and one of Australia’s top trading partners, has passed legislation for a national emissions trading scheme (ETS).

The Minister for Climate Change and Energy Efficiency, Greg Combet, welcomed the move.

“I congratulate the South Korean Government and National Assembly for taking this important step to drive sustainable growth and reduce greenhouse gas emissions,” Combet said.

“Australia is now one of 34 countries around the world, including South Korea, that will use emissions trading as the primary vehicle to drive carbon pollution reduction. We are far from leading the world, as some have claimed.”

The South Korean ETS is similar to Australia’s carbon pricing mechanism.

“Both schemes will cover the largest emitters of greenhouse gases in our economies,” said Combet.

The South Korean ETS will start in 2015 and cover facilities emitting 25,000 tonnes of carbon pollution - expected to be around 500 of the country’s largest emitters. The government will set emissions caps and reduction targets for each trading period.

“By the beginning of next year, 27 European Union members, Norway, Iceland and Switzerland, Australia, New Zealand, the US state of California and the Canadian province of Quebec will be using emissions trading to cut carbon pollution,” Combet said.

Since the Gillard Government announced the Clean Energy Future package last July, more countries have moved towards pricing carbon.

In February, South Africa announced a carbon tax starting in 2013. In March, Mexico passed a voluntary ETS. In April, Italy passed a carbon tax. China is developing pilot emissions trading schemes in a number of provinces and cities, covering economic and population areas multiples the size of Australia.

“The Opposition has said on no less than 10 occasions that Korea would never pass an emissions trading scheme - this is just another of Tony Abbott’s misleading claims on climate change which is now proven wrong,” Combet said.

“Around the world, developed and developing countries are moving to tackle climate change by pricing carbon.

“There is a growing acceptance that market mechanisms like emissions trading schemes and carbon prices are the cheapest and most efficient way of reducing emissions.”

Combet visited South Korea last week for meetings with senior government Ministers and officials to discuss cooperation on climate change policies.

“Australia and Korea will continue to work closely together as the South Korean Government implements the emissions trading scheme now legislated by the country’s National Assembly,” he said.