South Korea unveils carbon trading scheme rules

Light from the east . . . word is CERS may be allowed in South Korea’s carbon emissions trading scheme. This, combined with other national cap-and-trade schemes potentially coming online and a restriction on certain types of CERS in the EU ETS after 2012, suggests CER prices might tickle gently upwards. This will provide a boost to EUAs as well (which will receive a further nudge if the EU increases its emissions reduction target next year). So we may see a good bounce in carbon prices in general, thereby bringing about real and rapid change. Before we get too carried away, it should be noted that all this is some way short of the global cap-and-trade scheme we’d prefer. But hey. To mangle a well known phrase: if you can’t be with the carbon scheme you love, you might as well love the one you’re with.

See full Reuters story here:

http://uk.reuters.com/article/idUSTRE6AG1UN20101117

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