National Emissions Allowance Allocation Plan - Phase 4 (2026-2030)

The Phase 4 National Emissions Allowance Allocation Plan (2026-2030) strengthens Korea’s emissions trading scheme by setting a total emissions cap of approximately 2.54 GtCO₂e over the period and introducing differentiated annual reduction rates across sectors. The plan increases the share of auctioned allowances, with the power sector reaching up to 50% auctioning by 2030, while maintaining full free allocation for emissions-intensive trade-exposed industries. It also introduces a Korean Market Stability Reserve (K-MSR) to manage allowance supply and improve market stability. The scheme remains the central economy-wide carbon pricing instrument and is aligned with Korea’s enhanced 2030 emissions reduction target and long-term carbon neutrality pathway.

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