Asia Pacific > South Korea confirms first offset issuance

South Korea confirms first offset issuance

Published 01:11 on April 7, 2015  /  Last updated at 06:16 on April 7, 2015  / Stian Reklev /  Asia Pacific, South Korea

South Korea last week issued 1.91 million Korean Offset Credits (KOCs) to four companies, the Ministry of Environment said, the first offset issuance under its emissions trading scheme.

South Korea last week issued 1.91 million Korean Offset Credits (KOCs) to four companies, the Ministry of Environment said, the first offset issuance under its emissions trading scheme.

The offsets were given to four companies for N2O emission cuts from a Hu-chems nitric acid plant, the ministry said on Monday.

Trading firms Ecoeye and Korea Carbon were among the companies receiving the credits, which were issued against proof that CERs for the same emission cuts had been cancelled from the UN or New Zealand offset registries.

The ministry said it expected the issuance to improve the liquidity in the market, which remains untraded since Jan. 16, but most observers say the amount is insufficient to have a big impact on the overall market balance, which emitters say is around 20% short.

KOC holders can trade the offsets bilaterally, or convert them to Korean Carbon Units (KCUs), which would be traded on the Korea Exchange.

By Stian Reklev – stian@carbon-pulse.com