Seoul City has secured 28-year-long international emissions allowance for its photovoltaic (PV) project, which has been registered as part of the Clean Development Mechanism (CDM).
CDM is one of the methods of greenhouse gas reduction adopted under UNFCCC (UN Framework Convention on Climate Change) with the effectuation of the Kyoto Protocol in 2005. Registered businesses or other entities receive emissions allowances from the UN based on their record concerning greenhouse gas reduction projects.
Countries required to reduce greenhouse gases can readjust their emissions using the emissions allowances secured. They can also sell their right for emissions to other countries. Although not yet a country obligated to reduce greenhouse gases, South Korea can have its record of emission reduction recognized by registering with CDM.
There are two types of registration with CDM: Bundling of small-scale CDM project activities and Programmatic CDM (28 years for emission reduction CDM).
Under the scheme, Seoul City can register its additional right each time its PV project is completed. The city’s record of emission reduction for 10 years from the date of registration is to be recognized during the effective period of 28 years (from 2011).
According to Seoul City, its plan for the installation of PV facilities in public institutions affiliated with the city was registered with UNFCCC as programmatic CDM in December 2012. It received the final notice of confirmation last June following the procedure of document screening and onsite inspection.
This has been the first case of such registration by Seoul City. Due to the specific procedure for registration, only 164 cases (6 cases for South Korea, including the one stated herein) have been registered with the Programmatic CDM.
Seoul City is entitled to secure emissions allowances until 2039 per reduction of greenhouse gases accomplished through the installation of PV facilities. The city plans to secure 306,000 tons of emission allowances during said period with the installation of 2MW PV facilities every year.
The Programmatic CDM with which Seoul City has been registered recognizes the PV facilities installed by other public institutions as part of the record, even if they do not belong to Seoul City.
Accordingly, Seoul City will focus its efforts on the exploration of the portions that can be registered additionally while carrying out continued education and promotion among the autonomous district offices in Seoul and affiliated public institutions. The methods of use of the secured emissions allowances will be decided in consultation with the relevant parties.