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S.Korea to start emission trading in 2013-2015

Source: Thomson Reuters Foundation - Mon, 7 Feb 2011 06:54 AM
Author: (c) Copyright Thomson Reuters 2011. Click For Restrictions. http://about.reuters.com/fulllegal.asp
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(c) Copyright Thomson Reuters 2011. Click For Restrictions. http://about.reuters.com/fulllegal.asp
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* Govt aiming for approval of bill before Sept -official

* To raise pct of free carbon allowance from 90 pct -official

* President Lee urges flexibility on CO2 trading plan

By Ju-min Park and Cho Mee-young

SEOUL, Feb 7 (Reuters) - South Korea will start carbon emission trading between 2013 and 2015 after strong opposition from industry to the government&${esc.hash}39;s initial plan to start in 2013, a presidential secretary said on Monday.

The decision is a breakthrough for the country&${esc.hash}39;s powerful export-led conglomerates which have been pushing for a delay given competitor nations such as Japan and the United States have delayed or shelved emissions trading schemes.

"It is no longer an issue whether or not the government would implement cap-and-trade systems. We aim to get parliamentary approval on the bill before its general session," Kim Sang-hyup, a secretary to the president for green growth, told Reuters in a telephone interview.

Parliament&${esc.hash}39;s general session begins on Sept 1 each year.

"However, we will fully reflect industrial opinions in the bill to prevent them from reducing international competitiveness and help them minimise any damage," he said.

The revised bill, which would be presented to parliament later this month, would include an increased percentage of free carbon allowance from the 90 percent originally planned, Kim added.

If passed by legislators, it could become the region&${esc.hash}39;s second cap-and-trade scheme after New Zealand.

President Lee Myung-bak earlier on Monday urged flexibility on the trading plan, saying the government would introduce the scheme "at an opportune time after thoroughly sounding out the opinions of industries".

Major business groups filed a petition on Monday to the government calling for a moratorium on the plan.

Emissions from South Korea&${esc.hash}39;s economy have doubled since 1990, are slightly larger than Australia&${esc.hash}39;s nearly 600 million tonnes and, on a per-capita basis, are on par with some European nations.

The government aims to reduce greenhouse gas emissions by 30 percent from projected levels by 2020. (Editing by David Fogarty)

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