Korea’s 2026-2030 Greenhouse Gas Emission Allowances Plan
South Korea’s Ministry of Climate and Energy announced plans to convene the first in a series of public-private consultations regarding the fourth phase of the nation’s emissions trading scheme (ETS), scheduled to run from 2026 to 2030. The meeting, to be held March 23rd at the Korea Chamber of Commerce and Industry in Seoul, will focus on companies subject to the new allocation plan.
The consultations follow the government’s establishment of the fourth-phase allocation plan last year, as reported by News1. The upcoming session aims to facilitate the efficient operation of the ETS and address practical challenges faced by businesses. Approximately 100 representatives from major greenhouse gas emitting industries – including petrochemicals, power generation, and cement – along with relevant association officials, are expected to attend.
According to a statement released by the Ministry, discussions will center on the design and implementation of new policies outlined in the fourth-phase plan, including the introduction of a Korean Market Stabilization Reserve (K-MSR). The K-MSR is intended to stabilize carbon prices and enhance the effectiveness of the ETS. The Ministry will also present guidelines for applying greenhouse gas reduction performance, and seek feedback on potential improvements to the overall scheme.
Oil Young, Climate-Energy Policy Director at the Ministry of Climate and Energy, emphasized the ETS’s role in incentivizing cost-effective greenhouse gas reduction investments by companies. “The emissions trading scheme is not simply a regulatory system for businesses, but a core mechanism to induce cost-effective greenhouse gas reduction investment by companies,” he stated, as reported by Aju Economic Daily. He added that the Ministry intends to maintain regular communication with industry stakeholders and incorporate their input into policy decisions.
The ETS, governed by the “Act on the Allocation and Trading of Greenhouse Gas Emission Allowances,” establishes a framework for reducing national emissions. According to the National Law Information Center, the Ministry of Climate and Energy and the Ministry of Economy and Finance are jointly responsible for establishing a basic plan for the ETS every planning period, one year in advance of its start. The current fourth phase will allocate 23.6 billion tons of emissions to 772 companies, as reported by News1.
The Ministry has indicated that the consultations will include a free-flowing discussion to gauge the practical implications of the new regulations and identify potential areas for adjustment. The government plans to continue operating the public-private consultative body on a regular basis.