Seoul to introduce low carbon law

Companies emitting greenhouse gases above acceptable levels are expected to be slapped with heavier taxes as a part of new plans to promote healthier economic growth, the Prime Minister`s Office said yesterday.

To promote investment in ecologically-friendly corporations, the government also will set up "green industry investment companies" and "green industry funds."

Seoul will be submitting the bill for the related legislation in February following a public hearing and Cabinet meeting.

The "low carbon, green growth" bill is to include laws to levy heavier taxes on environmentally unfriendly companies that emit excessive amounts of greenhouse and are energy-inefficient.

The government failed to elaborate on how a limit would be set.

But regarding an on-going debate on whether to introduce a carbon tax, the government was more circumspect, saying it would take into regard international examples and overall public sentiment.

With the green bill, Seoul said it hopes to encourage the corporate sector to cut down on greenhouse gas emissions. Firms producing excessive amounts of the gas or consuming too much energy will be required to report the data to the government and make public disclosures of those figures.

The bill also will encourage buildings to reduce greenhouse gas emissions and engage in other environmentally-friendly activities in phases by setting up reduction goals per stage.

In addition, the bill will set the stage for adopting the widespread cap-and-trade program designed to curtail greenhouse gas. Further details such as when and how to implement it and the firms that would be subject to it are to be included in a follow-up bill.

The green industry investment firms and funds were devised to form a platform for offering profit to those participating in the government`s "green" movement, officials said.

The bill will promote the establishment of firms for investing in environmentally-safe technologies and business to later distribute the profit to the shareholders.

The state will be able to invest in this new form of company.

Through green industry funds, the government and private sector may jointly make investments in potentially competitive green technologies and businesses.

To help support the green growth plans, the government said it would create a green growth committee that together with Cabinet meetings, would establish policies and mid- and long-term goals for reducing greenhouse gas and promote efficient energy consumption.

All policies or plans related to green growth must consult the green growth committee in advance, regardless of which ministry is pursuing them. The green committee will be co-headed by Prime Minister Han Seung-soo and a private sector specialist.

The bill also calls for preparation against the Kyoto Protocol on climate change, as Seoul is expected to be forced to join the movement after 2012.

The Prime Minister`s Office stressed that the new green growth laws should set the standard for other related legislations.

"Green" has become the new national buzzword following President Lee Myung-bak`s recent initiative to adopt an environmentally-friendly approach to economic growth. Green growth is also among the administration`s four top policy goals.

Earlier this month, the government pledged to invest 50 trillion won ($37 billion) to promote a "Green New Deal" for pursuing economic prosperity in an environmentally-friendly way.

The government hopes to create almost 1 million new jobs with the "new deal."

By Kim Ji-hyun



(jemmie@heraldm.com)