South Korea passed legislation to begin a national cap-and-trade program in May 2012. The fourth largest economy in Asia and 12th economy worldwide, South Korea is the fastest growing source of greenhouse gas (GHG) emissions among industrialized countries, doubling since 1990. It is the 8th biggest source of GHG emissions in the world and has a national target of cutting them 30% by 2020.
South Korea's program will cover about 60% of emissions and will affect big polluters across the economy, including utilities, major manufacturers such as steel, petrochemicals and ship-building, livestock farms and even large universities. It focuses on operations that emit over 25,000 tons of carbon a year. Emissions trading is scheduled to begin in Korea in 2015, the same year as those in Australia and China.
The government is scheduled to announce rules governing compliance within six months. Participants will have the option of meeting the mandatory carbon cap by trading emissions permits or buying carbon offsets from United Nations-backed clean energy projects in developing countries. Furthermore, carbon markets in Korea, Australia and China may be linked with Europe's emissions-trading system as early as 2020, according to Globe.
In preparation for the cap-and-trade program, almost 500 major polluters face pollution caps this year. These companies will need to implement accurate and complete tracking and calculation of emissions data, along with internal controls and reporting mechanisms.
Oracle Environmental Accounting and Reporting supports these needs and guarantees consistency across organizations in how data is collected, retained, controlled, consolidated and used in calculating and reporting emissions inventory. Without the necessary reporting capabilities organizations cannot know if they are truly in compliance. EA&R also enables companies to develop an enterprise-wide data view that includes all five of the key sustainability categories: carbon emissions, energy, water, materials and waste. Reporting, metrics, disclosures, and internal controls that companies use for emissions, energy, water, materials and waste need to be as rigorous as those for financial data. Thanks to its native integration with Oracle and JDE ERP Financials and Inventory Systems and the capability of capturing environmental data across business silos, Oracle Environmental Accounting and Reporting is uniquely positioned to support a strategic approach to carbon management that drives business value.