LX International to enter emissions trading market

Hydroelectric power plant in the northern part of Sumatra Island, Indonesia, operated by LX International. [Photo by MK DB]

South Korea’s major trading firm LX International Corp. is expected to advance into the bourgeoning emissions trading market as part of a move to enhance its environmentally-friendly business.

According to sources from the trading sector on Wednesday, LX International is preparing a trial stage to sell carbon credits in Korea. It is considering various measures, including direct trading with customers or transactions through an exchange, ahead of business launch next year.

LX International is expected to use carbon credits earned from its Hasang hydroelectric power generation plant in North Sumatra, Indonesia, for the credit sale in Korea.

The Hasang plant was built under the Clean Development Mechanism (CDM), a program by the United Nations that allows countries to support projects reducing greenhouse gas emissions in other countries and count those saved emissions as part of their own efforts to meet international emission goals.

LX International has earned an annual 200,000 tons of carbon credits from CDM projects.

The United Nations has recognized the Hasang plant for its commitment to reducing greenhouse emissions as a feasible alternative to conventional fossil fuel power plants.