Seoul has become the first local government in the country to secure certified carbon emissions credits through its public bike-sharing program. (Image courtesy of Yonhap)
SEOUL, Mar. 27 (Korea Bizwire) – South Korea’s capital has become the first local government in the country to secure certified carbon emissions credits through its public bike-sharing program, opening a new revenue stream as it expands eco-friendly transportation.
The Seoul Metropolitan Government announced on March 26 that it had received approval to trade carbon credits earned by reducing greenhouse gas emissions when residents use the city’s “Ttareungi” bike-share system instead of driving personal vehicles.
Under South Korea’s emissions trading scheme, launched in 2015, the government allocates annual carbon credits to businesses that release greenhouse gases. Companies can trade surplus allowances or buy offset credits from external reduction projects.
Last May, Seoul’s metropolitan government teamed up with T-Money, the operator of Ttareungi, signing an agreement to pursue certification for earning tradable carbon credits through the bike share program.
After consulting experts and navigating administrative processes, the city calculated that the bike share system reduces annual emissions by an average of 962 tons of carbon dioxide equivalent by replacing motor vehicle trips.
With the external reduction project now approved, Seoul estimates it can generate sales revenue of 11.5 million to 12.5 million won annually by selling the certified emissions credits. Carbon allowances currently trade at around 12,000 to 13,000 won per ton on the Korea Exchange.
To claim the tradeable credits, the city plans to monitor the actual emissions reduced over the next year and undergo the required verification process.
“It is meaningful that Seoul has become the first local government to secure carbon credits through a public bike share initiative,” said Yoon Jong-jang, head of Seoul’s Urban Transportation Department. “The more citizens use Ttareungi instead of personal vehicles, the more emissions we can offset. We will work to improve bicycle infrastructure and increase the bike share’s modal split.”
The carbon trading program incentivizes cities like Seoul to promote environmentally sustainable transportation options as they work toward emissions reduction goals. Bike share systems, by replacing motor vehicle trips with zero-emission mobility, offer a way for municipalities to monetize those climate benefits.
M. H. Lee (mhlee@koreabizwire.com)
