[News Terms] Carbon Credit Exchange

Trading 'Carbon Reduction Volume' Like Stocks
Active Trading by Global Companies for 'Carbon Neutrality'
Domestic Exchange Expected to Open in Second Half of the Year

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Carbon credits are certificates issued to enable market trading after verification by certification bodies of emission reductions achieved through external greenhouse gas reduction activities, forest creation, and other efforts. They are classified into public credits and private credits.

In the private sector, it refers to proactive activities where companies independently buy and sell carbon reduction amounts. Global companies such as Walt Disney, online video service (OTT) Netflix, and e-commerce company Amazon purchase credits exceeding 100,000 tons annually to achieve 'carbon neutrality.' This is called 'Carbon Offset.'

In this regard, according to the industry on the 8th, Korea's first carbon credit exchange is expected to open as early as the second half of this year. The Korea Chamber of Commerce and Industry will start the carbon emission rights certification business this month and establish a 'Voluntary Carbon Market (VCM).' The voluntary carbon market is a private carbon market where various participants such as individuals, companies, and non-profit organizations can buy and sell carbon credits.

Such a private-sector carbon reduction credit market is actively operated worldwide. According to market research firm Ecosystem Marketplace, the global private carbon reduction credit market transaction amount surged by 281.7%, from $520 million in 2020 to $1.985 billion in 2021. The market size is also expected to continue growing. Global consulting firm McKinsey forecasted that the market size will expand to $50 billion (approximately 65 trillion KRW) by 2030.

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