The international society has come to a very important juncture now on climate change issues and has reached a common understanding towards the importance of concluding the negotiations on a post-2020 climate regime from the 21st session of the Confer...
The international society has come to a very important juncture now on climate change issues and has reached a common understanding towards the importance of concluding the negotiations on a post-2020 climate regime from the 21st session of the Conference of Parties(COP21) which was held in Paris, France in December 2015 after INDC was filed to the UN Framework Convention on Climate Change.
Korea submitted the INDC to UNFCCC, stating that they will reduce 37% of GHG emission compared to BAU 2030 and will meet the goal of 25.7% in the industrial sector, 11.3% through IMM(Int'l Market Mechanism). Together, this study focused on the concept of personal carbon trading as one of the ways to meet the goal of reducing emissions and tried to set up a specific plan.
In 2012, total GHG emissions in Korea was 688.3 million tons of CO2eq. This paper needed to analyze reduction potentials for the private sector (transportation, household, commercial, public, etc...), which is 20 percent of the total emissions in Korea, to use it as KCU in the industrial sector.
First of all, there is a need to study the personal transportation sector because it is easier to operate than other sectors considering the complexity and administration cost.
This paper studied the national emission trading scheme and many kinds of personal carbon trading, which is currently being studied at home and abroad, and tried to find a way to start personal carbon trading that uses low-carbon car subsidies on a trial basis considering realistic situations.
This paper examined low-carbon car subsidies and action plans for personal carbon trading with emissions from the transport sector. Low-carbon car subsidies are for car buyers who buy cars emitting GHG under 97g/km.
The Ministry of Environment made a $120 million budget for low-carbon car subsidies for 34,417 eco-friendly cars in 2015, and this paper studied about a way to exchange subsidies into individual emission rights and allow them to be traded.
Specifically, they need to exchange subsidies into individual emission rights by the proportion of the market value and the government should permit individuals to trade their emission rights on a separate marketplace based on a system that links individual emission rights, connecting the price to KOC or KCU on the national emission trading scheme. The participants in the national emission trading scheme will buy individual emission rights and use it for their own purpose.
Expected Effectiveness are as follows: first it would be helpful in increasing liquidity of offset credit in the national emission trading scheme. Second, personal carbon trading (personal transportation) on a trial basis will provide an opportunity to identify the scope of the problems in advance before introducing personal carbon trading across the whole private sector. Because it is very hard to start personal carbon trading across the whole private sector due to problems of public acceptability, administrative costs, etc..
Third, economic incentives from personal carbon trading based on low-carbon car subsidies will bring many positive effects by creating a demand for the low-carbon cars and it will be very helpful to reducing GHG emissions from the personal transportation sector.
As we have seen, if many people who buy low-carbon cars participate in personal carbon trading, it would be a great opportunity to raise awareness about the reduction of GHG emissions and the national emission trading scheme.
Additionally, it will contribute greatly to reducing GHG emissions from whole private sector(non-industry).