July 2018: Korea's GHG Reduction Roadmap and Phase 2 Allocation Plan


2030 Greenhouse Gas Reduction Roadmap 

The government has published the draft of the revised 2030 National GHG Reduction Roadmap on June 28 and announced hat the roadmap will be finalized by the end of this month. The draft amendment retains the original framework where the nation will cap its emissions to 536 million tons – a reduction of 314.8 million tons (37 percent) from the 2030 BAU estimate. The draft paper also contains a very crucial change that directly affects the Korean ETS which is the additional reductions in ETS-covered entities...


Phase 2 Allocation Plan

A total of 63 sectors (591 companies) are subject to receiving emissions allowances and from next year (2019), 26 sectors where power generation companies belong will be given 97 percent of their emissions allowances for free. 3 percent of the emission rights will be auctioned monthly to these entities. 37 sectors are qualified to receive 100 percent free allocation. The revenues from the auction will be invested in innovative GHG reduction projects such as support for reduction facilities of SMEs and other assigned companies...

Korean Market Update

From January 2017 until June 2018, KAUs traded for 232 days and KOCs for 44 days while KCUs did not have any single trade for the whole year. Exchanges in the last compliance year were livelier with monthly trades picking up in November 2017 and maintaining monthly transactions of more than 1 million tons. Monthly trading volume peaked on June 2018 exchanging 8.2 million tons, the highest monthly volume since the ETS began partly due to the auctioned units and the flow of excess permits from those subjected to carry-over restrictions...



[published: 2018-July-16]