The Korean government has long been aware of some chronic issues plaguing the national carbon market, most notably a persistent oversupply that is the result of the generous allocation of allowances since the scheme’s inception in 2015. Following seven consultations with relevant ministries, industries, and experts, the government finally confirmed its final version of the reform plan in November 2022.
In this analysis, we explore the backdrop of the ETS reform plan and the major policy changes that were implemented as part of the first reform.
Korea ETS challenges: Oversupply and price discovery Launched in 2015 as South Korea’s flagship policy instrument for climate change mitigation, the Korea Emission Trading Scheme (K-ETS) was the first national carbon market to be established in Asia, draw…
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