Two Renewable Energy Power Generation-Based Greenhouse Gas Reduction Program Projects Registered
"Securing 2 Million Tons of Carbon Emission Permits Annually Possible Through Future Project Specification"
[Asia Economy Reporter Onyu Lim] SK Engineering & Construction, which is focusing on eco-friendly and new energy businesses and strengthening ESG (Environmental, Social, and Governance) management, is accelerating its efforts to secure carbon credits.
On the 22nd, SK Engineering & Construction announced that it has registered greenhouse gas reduction program-of-activities (PoA) projects based on renewable energy in both Vietnam and South Korea. The registered program projects are part of the Clean Development Mechanism (CDM) under the United Nations Framework Convention on Climate Change (UNFCCC) and an external project operated by the Ministry of Environment, both of which allow the acquisition of carbon credits usable domestically.
First, on the 9th, SK Engineering & Construction completed the registration of a renewable energy power generation project in Vietnam as a ‘Program CDM project’ under the UNFCCC. SK Engineering & Construction is the first private construction company in South Korea to achieve this.
The UNFCCC’s Program CDM project is a greenhouse gas reduction method through which carbon credits are secured from the United Nations based on the performance of implemented greenhouse gas reduction projects. When carbon credits are secured, companies subject to the emissions trading scheme can offset excess greenhouse gas emissions beyond their allocated allowances with the secured credits, or sell the surplus credits to other companies if their emissions are lower.
This Program CDM project targets solar and wind power generation projects in Vietnam. SK Engineering & Construction is rapidly securing projects centered on regions with favorable conditions for renewable energy generation in Southeast Asia, in collaboration with a local solar power developer with whom it signed a memorandum of understanding (MOU) last year. Currently, it is developing utility-scale solar projects totaling over 2GW, and upon completion, it is expected to secure approximately 2 million tons of carbon credits annually, generating about 75.2 billion KRW in revenue.
Through this project registration, SK Engineering & Construction has established a foundation to directly develop renewable energy projects and secure carbon credits. At the same time, it has enabled support for greenhouse gas reduction certification and carbon credit trading for businesses planning to own or install renewable energy facilities domestically or in Vietnam in an open platform format.
The Program CDM project system registers multiple greenhouse gas reduction projects as a single program (comprehensive plan). Although the registration process is lengthy and complex, taking at least one year, it offers the advantage of quickly adding projects that meet the program’s conditions after registration.
In March, SK Engineering & Construction also registered a domestic solar power generation program project as an ‘external project’ operated by the Ministry of Environment. The external project system grants carbon credits equivalent to the reduction amount when companies without greenhouse gas reduction obligations voluntarily reduce emissions.
SK Engineering & Construction has been reducing greenhouse gases generated internally during project execution by installing solar power facilities on the roofs of site offices since last year and plans to expand this to all domestic business sites in the future.
SK Engineering & Construction has adopted ESG as a new core value of management and has been rapidly shifting its portfolio toward eco-friendly and new energy businesses since last year. Following the establishment of a solar power development platform to support RE100 for domestic companies earlier this month and the registration of the greenhouse gas reduction program project, it is expected to play an important role in strengthening ESG management as a carbon credit supplier, which has been very limited until now.
An SK Engineering & Construction official said, “It is significant that we can accelerate securing carbon credits through renewable energy projects with the registration of two program projects domestically and internationally,” adding, “We will strengthen our position as a stable carbon credit supplier through diverse project development and promotion.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
