From Next Year, 2.608 Billion Tons Greenhouse Gas Emission Cap for 5 Years... Hanjin and Others Added

Applied from 2021 to 2025... Allocated to 684 Companies

[Asia Economy Reporter Moon Chaeseok] Transportation and logistics companies such as CJ Logistics, Hanjin, and Hyundai Glovis are included in the greenhouse gas emissions allowance allocation. These companies will be able to buy and sell emission allowances if they reduce or increase their greenhouse gas emissions from next year until 2025.

The Ministry of Environment announced on the 24th that it has selected 684 companies as allocation targets for the third phase of the greenhouse gas emissions trading scheme from next year until 2025 and allocated a total allowance of 2.608 billion tons of greenhouse gas emissions.

The total amount of allowances allocated this time is the amount obtained by subtracting the reserve for other uses and part of the allocation for the transition sector in 2024-2025 from the total amount of 3.048 billion tons allowed in the 'National Emissions Allowance Allocation Plan' established last September.

This allowance allocation was divided into 2021-2023 (Phase 1) and 2024-2025 (Phase 2) to align with the 'Basic Roadmap for Achieving the National Greenhouse Gas Reduction Target by 2030.'

Fifty-eight companies including SK ENS were allocated 705 million tons of allowances in Phase 1, and only 30% of the allowances allocated to each company in Phase 1 were initially allocated in Phase 2.

By industry, 1.63628 billion tons were allocated to the industrial sector, which includes 449 companies such as POSCO, and 23.657 million tons were allocated to the building sector, which includes 39 companies such as Shinsegae.

The transportation sector, which includes 61 companies such as Kumho Express, was allocated 39.955 million tons individually to each company. Additionally, 62.235 million tons were allocated individually to companies in the waste, public, and other sectors, which include 77 companies.

The finalized greenhouse gas emissions allowance allocations for each company will be notified to the respective companies through the 'National Greenhouse Gas Comprehensive Management System.' Companies with objections can file an objection through the system by the end of next month.

The Ministry of Environment plans to form a 'Carbon Neutral Support Council' centered on the 684 allocated companies during the third phase and hold monthly discussions to explore development directions for the emissions trading scheme and tasks for carbon neutrality. The council will include 39 representative companies from various industries and 22 associations.

Geum Hanseung, Director of Climate Change Policy at the Ministry of Environment, said, "Since the total allowable emissions will decrease from the third phase of the emissions trading scheme, it is a situation where the government and companies must make every effort to reduce greenhouse gases," adding, "These efforts will serve as the starting point for carbon neutrality."

Comparison of Greenhouse Gas Emission Allowances by Sector. (Source: Ministry of Environment)

This content was produced with the assistance of AI translation services.