Korea proposes improvements to GHG emissions trading system

South Korea Ministry of Environment announced the plan to improve emissions trading system (hereinafter referred to as the improvement plan), which includes details for encouraging companies to reduce greenhouse gas emissions, on the occasion of the 16th Emission Rights Allocation Committee meeting held on November 24, 2022.

The improvement plan was established after collecting suggestions for improving the system in the field and discussing them in the Council for Advanced Emissions Trading System formed in August 2022. The improvement plan consists of two phases: short-term issues such as increasing the benefits of greenhouse gas reductions and streamlining complex administrative procedures to support implementation of the system, and fundamental system improvement issues such as improving the allocation system of emission rights by setting total allowable emissions and expanding paid allocation, and thereby improving offsetting and carry-over systems.