South Korea has doubled its target to cut greenhouse gas emissions next year.
Reports claim the Government’s Ministry of Knowledge Economy today announced that industrial and power sector firms will be required to cut emissions by 3% in 2013, compared to the 1.4% target this year. This is equivalent to a combined emissions reduction of 17.2 million metric tons in 2013 in comparison to 8 million tons in 2012.
The move is in a bid to increase competitiveness ahead of its new cap-and-trade system in 2015 which requires companies exceeding their emission quotas to buy permits from those that emit less.
Those businesses that fail to meet their reduction targets next year will have to pay a maximum of ₩10 million (£5617) in 2014. Reports claim people prefer this method to the market-based system as the price to pay is relatively small.
South Korea expects 570.6 million metric tons of carbon equivalent gases to be emitted by 377 firms in its industrial and power sectors next year. The country’s Presidential Committee for green growth has set a target of 30% reduction in carbon emissions by 2020.