South Korea said on Wednesday it would launch its first carbon trading firm to fund clean energy projects and encourage investment in emission trading, joining the global push to tap the US$64 billion carbon market to fight climate change. Korea Carbon Finance will launch this month with 5 billion won (US$4.3 million) in capital, financed by Korea Investment & Securities and private companies, South Korea's energy ministry said. "The company will trade carbon offset credits (CERs) produced by domestic companies and secure investments from private equity funds to invest in carbon derivatives and greenhouse gas reduction projects," it said in a statement. In the US$13 billion Clean Development Mechanism (CDM) market, a trading scheme under the Kyoto Protocol, companies from rich nations can invest in clean energy projects in developing countries and in exchange receive offset credits, called CERs, which they can use toward their emissions targets or sell for profit. South Korea's CDM market is the world's fourth largest after China, India and Brazil. (US$1=1158.3 Won) (Reporting by Miyoung Kim; editing by Jonathan Hopfner)