South Korea's state-controlled electric utility company said Sunday that is has made its first overseas foray into the clean development mechanism business.
Korea Electric Power Corp. said it signed a deal with its counterpart in Iran on Saturday to reduce greenhouse gases in the resource rich Middle East country.
It said the plan outlines cutting back on sulphur hexafluoride (SF6) being released into the atmosphere by some 700,000 tons in the next 10 years. It said a building energy management system it has developed will be provided to the Iranian company.
The KEPCO supported reduction in SF6 can be used by the South Korean company as credit and be brought back home to be traded on the local stock exchange for profit.
Under the Kyoto Protocol aimed at tackling climate change, 37 countries that are obliged to reduce greenhouse gas outputs cited for causing global warming, can help economies that are not required to take such steps at present, for transferable credit.
This can later be sold for cash.
KEPCO said it expects the Iran deal will translate into 10 billion won ($8.7 million) in profit down the line. (Yonhap)