Korea’s Emissions Trading Scheme came into force on January 2015 covering 525 entities (600 entities at present) from the energy, industry, building, waste and transport sectors. The ETS will operate in three phases: Phase 1 (2015-2017), Phase 2 (2018-2020), and Phase 3 (2021-2025). Emitters are given 100% free allocation which will gradually be reduced in the coming phases. The scheme includes flexibility measures such as borrowing, banking, and offset emission credits to respond to demand increases or decreases attributable to various changes. 

This report offers a short summary of the first phase’s first two compliance cycles and a price forecast for 2018 provided by Ecoeye’s market analysis arm, Carbon-i. The first compliance cycle covers the period from January 2015 – June 2016, second compliance cycle from January 2016 – June 2017, and the third compliance cycle from January 2017 – June 2018. The system currently trades on the last compliance cycle of the first phase...

[published: 2018-Feb-02]