The Republic of Korea, the world's 15th largest economy and one of Australia's top trading partners, passed legislation for a national emissions trading scheme (ETS).

 

The Minister for Climate Change and Energy Efficiency, Greg Combet, welcomed the move.

 

"I congratulate the South Korean Government and National Assembly for taking this important step to drive sustainable growth and reduce greenhouse gas emissions," Mr Combet said.

 

"Australia is now one of 34 countries around the world, including South Korea, that will use emissions trading as the primary vehicle to drive carbon pollution reduction. We are far from leading the world, as some have claimed."

 

The South Korean ETS is similar to Australia's carbon pricing mechanism.

 

"Both schemes will cover the largest emitters of greenhouse gases in our economies," said Mr Combet.

 

The South Korean ETS will start in 2015 and cover facilities emitting 25,000 tonnes of carbon pollution - expected to be around 500 of the country's largest emitters. The Government will set emissions caps and reduction targets for each trading period.

 

"By the beginning of next year, 27 European Union members, Norway, Iceland, and Switzerland, Australia, New Zealand, the US state of California and the Canadian province of Quebec will be using emissions trading to cut carbon pollution," Mr Combet said.

 

The Republic of Korea is Australia's fourth largest trading partner. Two-way trade in goods and services between the two countries was worth $31.9 billion in 2010-11.