SEOUL (AFP) – South Korea will set up its first carbon trading company to help regulate greenhouse gas emissions, officials said Wednesday.
Korean Carbon Finance (KCF) will be set up this month with start-up capital of five billion won (4.4 million dollars), said the Ministry of Knowledge Economy.
It will trade carbon offset credits produced by local companies and secure investments from private equity funds to invest in carbon derivatives and greenhouse gas reduction projects.
South Korea is classed as a developing country and is not obliged to cut back on greenhouse gases under the Kyoto Protocol, which was adopted in 1997 and took effect in early 2005.
But it may have to join the global campaign after 2013.
The new firm will make direct investments and provide consultations to firms that want to cut down on greenhouse gases, the ministry said in a statement.
“KCF will help invigorate the market for greenhouse gas reductions in Northeast Asia,” it said.