“Combining our financial market influence and know how, we believe South Korea has an advantage in carbon trading,” Ki-jong Woo, secretary general of the presidential panel on green growth said.
The country’s carbon exchange and trading bill have not been passed in the parliament.
Woo said that the country was still discussing where to base the exchange to serve domestic and overseas players, including major gas emitters, institutional and private investors.
Japan, China, Hong Kong and India have all said that they were considering trading primary and secondary carbon credits.
Till now, trading has only been in primary CERs on the over-the-counter market and Singapore’s Asia Carbon Exchange. There is no liquid market to trade carbon allowances under cap-and-trade and secondary CERs, including derivatives.
“The carbon exchange should be different from other commodities and securities exchanges,” Woo said.
“With our 107 trillion won ($85.77 billion) investment, our carbon reduction target will be achieved more effectively,” Woo said, referring to the country’s target to invest 2% of annual GDP in green sectors.
