Journal of Climate Change Research (한국기후변화학회지)
- Volume 9 Issue 4
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- Pages.453-460
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- 2018
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- 2093-5919(pISSN)
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- 2586-2782(eISSN)
DOI QR Code
Analyzing the Potential of Offset Credits in the Korean Emission Trading Scheme Focusing on Clean Development Mechanism Projects
CDM사업을 대상으로 한 국내 온실가스 상쇄배출권의 잠재량 산정 및 정책 제언
- Kim, Woori (Dept. of Environmental Science and Ecological Engineering, Graduate School, Korea University) ;
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Son, Yowhan
(Dept. of Environmental Science and Ecological Engineering, Korea University) ;
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Lee, Woo-Kyun
(Dept. of Environmental Science and Ecological Engineering, Korea University) ;
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Cho, Yongsung
(Dept. of Food and Resource Economics, Korea University)
- Received : 2018.12.02
- Accepted : 2018.12.20
- Published : 2018.12.31
Abstract
The purpose of this study is to analyze the potential quantity of Korean Offset Credits (KOC) resulting from Certified Emission Reductions (CER) in 98 domestic Clean Development Mechanism (CDM) projects that were registered with the United Nations Framework Convention on Climate Change (UNFCCC) as of the end of 2016. Our results show that the total amount of potential KOC is 62,774 kt CO2eq. The potential KOC is only 23.4% of the total CER Issuance. During the first phase, this will be 3.2% of the allocated volume. This is because many projects are related to Renewable Portfolio Standard (RPS), HFC-23, and adipic acid N2O. There is a strong bias in some sectors and projects which could act as market distortion factors. Therefore, it is necessary to expand the target CDM project and activate non CDM offset projects. RPS projects bring fundamental changes to the energy sector, and it is worth reconsidering their acceptability. A wide variety of policy incentives are needed to address strong biases toward certain sectors and projects. The offset scheme has the advantage of allowing entities to reduce their GHG emissions cost effectively through a market mechanism as well as enabling more entities to participate in GHG reduction efforts both directly and indirectly. In contrast, having an inadequate offset scheme range and size might decrease the effort on GHG reduction or concentrate available resources on specific projects. As such, it is of paramount importance to design and operate the offset scheme in such a way that it reflects the situation of the country.
Keywords
- Clean Development Mechanism;
- Korean GHG Emission Trading Scheme;
- Korean Offset Credits;
- Korean Allocation Unit;
- Korean Credit Units