Korean proposal to cut emissions send jitters to oil industry

The Presidential Committee on Green Growth sent ripples through Korea’s business world when it proposed that the country choose either to freeze greenhouse gas emissions at 2005 levels or to reduce them to 96% of that figure by 2020. The emissions numbers for 2005 are about 27% lower than current estimates for 2020, while 96% of 2005 levels would be 30% lower. Representatives at local oil refineries said their companies are now building heavy oil upgrading facilities, which produce high-priced gasoline or light oil from dense, low-quality materials. Though these facilities actually save energy in the long run, the officials said, they cause increased emissions in the short term, so refiners investing in them could be unfairly targeted by the reduction plan. (November 6, 2009)