온실가스 배출권 거래제 도입방향

This study recommends a framework for GHG emissions trading in Korea. A phased approach is required to meet the unique policy environment of Korea: A voluntary emissions trading scheme in the pre-commitment stage and a mandatory cap-and-trade scheme in the commitment stage. For a mandatory GHG cap-and-trade scheme, Auction is suggested as the best way to allocate allowances. An auction avoids a lot of potential problems including baseline protection, compensation for early action, adverse selection, windfall profits to incumbents, entry barriers, negotiation complexity and many other equity and efficiency issues. In the pre-commitment stage, CDM can be utilized as a driving force for developing countries to introduce a GHG emissions trading scheme. An incentive auction can be proposed as a potential CDM project. Considering the existing air pollutant cap-and-trade policy of Korea, a multi-pollutant cap-and-trade system, covering GHG and conventional air pollutants, for Seoul Metropolitan Area may be a promising option for cost-effective GHG emissions trading in Korea. An intensity-based allocation needs to be applied in this case to avoid perverse incentives stemming from geographical difference among a single nation. The regulation on mandatory reporting and disclosure of corporate GHG emissions is also an essential step towards successful implementation of emissions trading.