Plan meant to blunt impact of Kyoto Protocol requirements
Starting next year, South Korean companies that cut the amount of greenhouse gases they emit will receive cash from the government. While the plan has not yet received final endorsement, the cash incentive will probably be 5,000 won (US$5) per one ton of carbon dioxide reduced. Greenhouse gases include carbon dioxide, methane, nitrogen dioxide, perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), and sulfur hexafluoride. On Aug. 27, the Ministry of Planning and Budget and the Ministry of Commerce, Industry and Energy said the government will start the cash incentive program next year, with an aim to encourage companies to voluntarily reduce their greenhouse gas emissions levels. Lee Seung-cheol, a senior official at the Ministry of Planning and Budget, said, "The government plans to budget 5 billion won for cash incentives for greenhouse gas reduction." Companies that want to receive the cash incentive should submit their plans to cut greenhouse gases to the Korea Energy Management Corporation, upon which the plans will be verified in terms of whether they will truly cut greenhouse gases during the period stated. So far, 34 companies have submitted their facility investment plans aimed at slashing their greenhouse gas emissions. The measure is designed to relieve the expected impact of South Korea’s requirement to cut greenhouse gases in line with the Kyoto Protocol, which is expected to deal a blow against the nation’s energy-dependent steel and petrochemical industries. When the Kyoto Protocol came into force in 1997, South Korea was not included on a list of nations required to cut their greenhouse gas emissions volume between 2008 and 2012, because the nation was recognized as a "developing country." However, South Korea is highly likely to be included in a list of nations that must reduce emissions from 2013 or pay heavy penalties.South Korea is currently the world’s 10th largest greenhouse gas-producing country.
