Market sentiment has greatly affected allowances prices as it fluctuated in May, dropping to as low as KRW 30,700 while a steady stream of supply from sellers pour into the market, but the prices soon rebounded after the Ministry of Environment released the certified emissions report. KAU20 and KOC prices has also dropped during the month.
According to the press release by the environmet ministry, 2019 emissions amounted to 589.41 million tons, a -2% drop year-on-year, with the power generation sector recording the biggest reduction. In the same report, it is estimated that there is around 8 million tons of surplus.
For 2020, Ecoeye forecasts that major industries will continue to experience a decline due to the impact of the pandemic. The last compliance year will also be long due to an expected drop in production.
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