Current Situation of CDM and Future Direction in Korea

Jeong Eun Kim*, Hyun Ah Choi, Yo Whan Son and Woo Kyun Lee
Korea University

Abstract

 To deal with the Kyoto Protocol, many countries try to reduce GHGs emissions using the Kyoto Mechanism. The Kyoto protocol allows developed countries to achieve cost-effective GHGs emission reductions abroad by means of international emissions trading (LET), joint implementation (11) and the clean development mechanism (COM). The Kyoto Protocol's clean development mechanism (COM) was established in 1997 with the dual purposes of assisting non-Annex I Parties in achieving sustainable development and assisting Annex 1 Parties in achieving compliance with their quantified GHG emission commitments. As Korea is a Non-Annex 1 countJy, CDM is the only way to use the Kyoto Mechanism. This study aims to make a future direction of CDM project in Korea. For that purpose, this study shows current situation of CDM project in Korea and analyzes the economic feasibi lity of CDM project in Korea compared to CDM project in other countries. The result shows that CDM project in Korea is not profitable
than CDM in other developing countries. To make a future direction of CDM project in Korea correctly, economic feasibility as well as other researches such as future reduction potential and national GHGs reduction plan should be done before making a CDM project investment decision.
Kew words CDM, Kyoto Mechanism, economic feasibility of CDM project, Korea