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Domestic Greenhouse Gas Emissions Trading Schemes
( Yong Gun Kim ),( Erik F. Haites ),( Steve Sorrell ),( Tae Yong Jung ),( Poul Erik Morthorst ),( Myung Kyoon Lee ),( Jong Soo Lim ) 한국환경연구원 2003 수시연구보고서 Vol.2003 No.-
The Kyoto Protocol, if it enters into force, would establish emission limitation commitments for the developed countries and a full international emissions trading system for greenhouse gases. This has forced each nation to give the emissions trading consideration and prepare its domestic climate policies. Domestic greenhouse gas (GHG) emissions trading systems (ETS) are already being in operation in UK and Denmark, and European Union has decided to introduce compulsory domestic GHG emissions trading from year 2005. Other non-European developed countries such as Japan and Canada are actively considering the introduction of domestic ETS. In the United States, even though it is still refusing to ratify the Protocol, many states are implementing or considering programs that would limit GHG emissions and a growing number of major companies are undertaking significant efforts to address climate change including participating in emissions trading. The United States Congress tries to establish the compulsory reduction target and a nation-wide ETS combined with its traditional climate policy. This study analyzed the results of recent international climate change negotiations related to the credit transaction of Clean Development Mechanism and Joint Implementation, and the international GHG ETS which was stated in the Kyoto Protocol. This study also provides an overview of the UK emissions trading scheme, describing its main elements and limitations and difficulties associated with the scheme. The major elements of the EU Emissions Trading Scheme, which begins in 2005, are also reviewed focusing on the areas which have generated particular controversy and difficulty. Also, the recent trend in Denmark is summarized especially in relation to the energy reform and the green certificate markets. The current progresses in introducing GHG ETS are overviewed for United States, Japan and Canada. These non-European countries are considering the linkage with the EU emissions trading market and it is assessed that the expansion to the integrated international ET market is highly likely. Korea, as a developing country under UNFCCC and Kyoto Protocol does not have the obligation to reduce its GHG emissions. However, it is likely that the country could be obligated to take more responsibilities, depending upon the future negotiations. Thus, it needs to prepare its domestic climate change policies for the future expansion of international ET market. In this study we tried to analyze the basic principles for the design of domestic GHG ETS and detailed design method under these special circumstances. And it appears that it is necessary to promote a voluntary and incentive based ET market prior to the introduction of compulsory ETS. The international effort to introduce ETS is expected to expand and intensify, thus the trend analysis and researches on international cooperation program should be continuously pursued. This study is the start of those research activities and it is believed that international cooperative researches of various experts of each nation are indispensable in this regard.
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