• Journal of Climate Change Research
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• v.8 no.1
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• pp.73-80
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• 2017

This study sees the past, present and future of the international carbon market. It is expected that it is not until 2020 and beyond before the international carbon market is settled by international consensus, and it is too early to picture the international carbon market at this point. Instead, this study focuses on analyzing the content of Article 6 of the Paris Convention, being fully aware of the uncertainties surrounding the international carbon market and can only be a step in determining the future of the international carbon market. In the future, the international negotiations will be under fierce competition of countries, each of which aims to make their advantageous system or mechanism recognized internationally Therefore, it is necessary for Korea to devise a system that can maximize the national interest and try to be recognized in the international society. To accomplish this, the following tasks are required at the present stage. First, we need to include the basic directions for the reduction using the international carbon market in the preparation of the roadmap for GHG reduction in Korea. Based on the directions presented in the roadmap for reducing GHG emissions, Korea should set up a government-wide plan on the international carbon market. In addition, a long-term TF should be formed to enact such plans in the international community. The international carbon market is an issue that several professional fields overlap, and it is indeed difficult to pursue by a single ministry. Therefore, it is necessary to create and strengthen the TF that can cope immediately with the international movement.

• Proceedings of KOSOMES biannual meeting
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• 2017.04a
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• pp.213-213
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• 2017

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.46
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• pp.265-313
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• 2010

Kyoto Protocol is an international convention on concrete performance program for UNFCCC(United Nations Framework Convention on Climate Change), which regulate and prevent to global warming and officially came into effect on February 16, 2005. Kyoto flexible mechanisms, the agreed environmental system in March 1997 in the Third Conference of Parties in UNFCCC General Assembly, Emission Trading System(ETS), Clean Development Mechanism(CDM) and Joint Implementation(JI), are key policies related to environment. In advanced countries, greenhouse gas emissions should be reduced average 5.2% level compared to 1990 in total emissions during 2008-2012. World leading carbon market finished the trial on the EU ETS I greenhouse gas emissions trading system, EU ETS II is operated regularly after 2008. World Bank leads to make 'Prototype Carbon Fund(PCF)' in April 2004, which is the world first carbon fund and a representative public carbon fund type, World Bank operate various funds including present PCF. Thus, I would like to propose as follows in relation to this study: First, in the validity analysis of carbon funds, it would be needed to analyze the Emission Reduction Cost Efficiency(ERCE) of carbon. The ERCE is a break-even value which brings the Net Present Value(NPV) to zero. NPV approach is used among projects and it enables potential projects to be compared and evaluated the ERCE on the basis of the net present value of net future cash flows. Therefore, according to results of analysis, carbon funds should be developed and invested. Second, it would be necessary to allow of issuing bonds together with carbon funds, carbon finance etc. Third, carbon funds, it would be reasonable to have a relatively enough maturity in project and as a financial derivatives in the international financial markets, it is needed various types of transactions. Fourth, it would be needed to standardize the carbon emissions trading for more efficiently. Fifth, it would be necessary to establish and invest in various kinds of domestic and overseas global carbon funds, including governments, privates, governments and privates sectors. And it is also needed to establish the medium and long term plans for carbon funds. Sixth, it would be needed to foster the advanced trade mechanisms for carbon funds in the most effective ways. Finally, carbon funds should be used in harmony with international societies to reduce global warming as the social responsible investing funds and it should be contribute to sustainable development. In addition, it would seem that carbon funds should be studied on establishing the contributable standard of sustainable development in the future assignment.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.107-110
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• 2013

Recently, Korea parliament legislated the Low Carbon Green Growth Act (April, 2012) and approved a bill (May, 2012) to start carbon emission trading system in 2015. It means that for the first time, government would regulate the amounts of carbon emission in private entities, and private entities should attain predefined emission reduction goals by implementing clean development mechanism (CDM) project or buy the Certified Emission Reductions (CERs) from the trading market to avoid penalty. Under these circumstances, it is not easy for them to determine when or how to implement the CDM project because the governmental energy policies about the level of governmental subsidies, periods for free emission allocation, etc. are still under discussion and the future price of the CERs is quite uncertain. Thus, this study presents a real-option based model to assess the financial viability of the CDM project which switches bunker-C oil to liquefied natural gas (LNG). The proposed model is expected to assist private entities in establishing the investment strategy for CDM project under uncertain government energy policies.

• Journal of Climate Change Research
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• v.8 no.4
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• pp.297-303
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• 2017

Considering Japan's Greenhouse Gas (GHG) emissions reduction target for Fiscal Year (FY) 2030, the Joint Crediting Mechanism (JCM) was analyzed in order to estimate its significant contribution to Japan's Nationally Determined Contribution (NDC) and check its availability as a new mechanism to achieve Korea's 2030 mitigation target of 11.3% using carbon credits from international market mechanisms. The total budget for JCM Model Projects (1.2 billion JPY/yr) and JCM REDD+ Model Projects (0.8 billion JPY/yr), which are expected to deliver at least 50% of issued credits to Japan, is estimated about 21.6 billion JPY by the year 2030. This budget is about one third of the purchase of carbon credits from international carbon markets. So far, JCM credits of $378tCO_2-eq$. have been allocated to Japan, which are about 77% of the total issued credit through five-JCM Model Projects implemented from the year 2014. It is expected that Japan will obtain about $0.5MtCO_2-eq$. credits more from 100-ongoing JCM Projects, which are only 1% of Japan's NDC target through JCM credits. With regard to regular issued credits from implemented projects, expected new issued credits from pipeline projects and the less budget for JCM implementation as compared to purchasing carbon credits, JCM credits can be reached a resonable level of Japan's NDC target of $50{\times}100MtCO_2-eq$. through JCM until FY 2030.

• Environmental and Resource Economics Review
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• v.23 no.2
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• pp.157-185
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• 2014

The Kyoto Protocol has extended its life until 2020 by the decision at COP18 in Doha, Qatar in 2012. So has the Kyoto Mechanism of CDM, JI, and ETS. Nonetheless, the sustainability of CDM projects is jeopardized by the recent rule changes in the international emissions trade market such as EU ETS and the price decrease in emission credits. In particular, the domestic CDM projects reducing non-$CO_2$ GHG emissions are being directly affected. This study examines the trend of carbon credit price change in the international market. It also examines how the rule changes in the international emissions trade market have affected domestic non-$CO_2$ CDM projects through which mechanisms. The policy implications drawn from this study is two-fold: it suggests how the government can assist the project developers in utilizing GHG emission reduction technologies and the market in promoting investment environment before the domestic ETS enters into effect in 2015; apart from possible measures within ETS, an additional measures such as bilateral carbon offset system is suggested to help the private sector reduce uncertainty in investment and increase options to choose.

• International conference on construction engineering and project management
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• 2009.05a
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• pp.272-275
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• 2009

Carbon finance is the investment in Greenhouse Gas (GHG) emission reduction projects in developing countries and countries with economies in transition within the framework of the Kyoto Protocol's Clean Development Mechanism (CDM) or Joint Implementation (JI) and with creation of financial instruments, i.e., carbon credits, which are tradable in carbon market. The additional revenue generated from carbon credits will increase the bankability of projects by reducing the risks of commercial lending or grant finance. Meantime, it has also demonstrated numerous opportunities for collaborating across sectors, and has served as a catalyst in bringing climate issues to bear in projects relating to rural electrification, renewable energy, energy efficiency, urban infrastructure, waste management, pollution abatement, forestry, and water resource management. Establishing additionality is essential for successful CDM project development. One of the key steps is the investment analysis. As guided by UNFCCC, financial indicators such as IRR, NPV, DSCR etc are most commonly used in both Option II & Option III. However, economic indicator such as Economic Internal Rate of Return(EIRR) are often overlooked in Option III even it might be more suitable for the project. This could be due to the difficulties in economic analysis. Although Asian Development Bank(ADB) has given guidelines in evaluating EIRR, there are still large amount of works have to be carried out in estimating the economic, financial, social and environmental benefits in the host country. This paper will present a case study of a CDM development of a 18 MW hydro power plant with carbon finance option in central Vietnam. The estimation of respective factors in EIRR, such as Willingness to Pay(WTP), shadow price etc, will be addressed with the adjustment to Vietnam local provincial factors. The significance of carbon finance to Vietnam renewable energy development will also be addressed.