Policy status:In Force
Date Effective:2015
Policy Type:Economic Instruments>Market-based instruments
Agency:Ministry of Environment
Renewable Energy Description:

The emissions trading system is considered a cost-effective way of reducing greenhouse gases and currently Korea is examining the feasibility of implementing an emissions trading system as part of its efforts to reduce greenhouse gas emissions. The emissions trading system is new to Korea and as such, the government is promoting seminars on emissions trading and various simulations of emissions trading, so that both the public and private sector will be better acquainted with the system.

Climate Change Description:

Domestic emission trading is a new economic instrument which can be effective, where the energy related tax is already high, such as in Korea. In order to integrate the policy objective of de-carbonisation, early introduction of domestic emission trading is being reviewed. In a first phase, the power market will conduct a demonstration project, based on the baseline matrix scheme, and in the next phase other industries like refinery, petrochemical, and steel by electric furnace will constitute a new carbon market. In the last phase, a general emission trading market will be established where the government itself participate as a buyer to absorb the credit offered by the renewable energy and ESCO (energy service company) projects.

Last modified: Thu, 02 Jun 2016 18:47:43 CEST