After the South Korean government revealed its proposed plan on the second phase of the ETS and indicated that it considers stronger market interference measures, the price of Korean carbon allowance in the 12th of December dropped by 30.2% from its all-time price of KRW 28,000 recorded in the 23rd and 24th of November. In recent days, carbon prices are seen picking upwards trading between KRW 21,500 –KRW 22,500 as the market bounces back. The government said that there are no supply problems for the 2017 compliance year as entities lacking permits need around 40 million tons and the available amount that can be supplied is 60 million tons. In the meantime, supply and demand imbalance will remain as companies with surplus are expected to only start selling excess permits to the market after the second quarter of 2018... 

[published: 2018-Jan-19]