The Korean government has released several documents containing the draft amendments to the ETS’ auction procedures and foreign offset rules in early March. The Phase 2 of the ETS is set to start its new allocation method in addition to allowing carbon credits from eligible foreign GHG reduction projects. 

The Korea ETS is designed to progressively transition to auctioning to pursue tighter emissions reduction targets until 2030 and to promote market functions. Starting 2019, 97% of the allowances will be allocated for free via benchmarking and the remaining 3% will be available for auction. The government is also promoting overseas offset projects in preparation of the post-2020 goal, thus, allowing offset credits from overseas CDM projects for compliance use from Phase 2 of the system. The final approved version of the draft text will be released by the end of April 2018.

[published: 2018-Apr-10]