The Sudokwon Landfill Corp. has cancelled more than 800,000 CERs from UN carbon registry in order to re-issue the reductions as Korean Offset Credits (KOCs), UN data showed, marking the company’s second conversion in two weeks of credits.

The offsets, worth at least $15.5 million in the Korean ETS, represent emission cuts made at a landfill gas electricity generation project registered under the CDM.

In comparison, the offsets would have fetched some $575,000 in the UN market at current prices.

South Korea’s Ministry of Environment will issue a corresponding number of KOCs that can be used for compliance in the nation’s emissions trading scheme once converted into Korean Carbon Units (KCUs).

Sudokwon converted 550,000 CERs from the same project last week taking its total fresh KOC supply to 1.36 million, worth $15.5 million if sold as KCUs on the Korea Exchange.

The move means Korean firms now have cancelled nearly 6 million CERs, turning them into credits for use in the country’s supply-starved domestic carbon market.

By Stian Reklev – stian@carbon-pulse.com

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