10th Anniversary of Emissions Trading System... Aiming for a Rebound with Linked Financial Products

Event Hosted by the Ministry of Environment at Korea Exchange
Commemorating 10 Years of the Emissions Trading System
Pledging Further Development and Introduction of Financial Products Linked to Emission Permits

The environmental authorities held a commemorative event marking the 10th anniversary of the introduction of the Emissions Trading System. They also expressed their intention to activate the emissions trading market and contribute to cost-effective greenhouse gas reduction by introducing financial products linked to emission permits.

On the 22nd, the Ministry of Environment, together with the Ministry of Economy and Finance, Korea Exchange, and Korea Environment Corporation, held a commemorative event for the '10th Anniversary of the Implementation and Market Opening of the Greenhouse Gas Emissions Trading System' at the Korea Exchange in Yeouido. Under the theme of 'The Second Leap of the Emissions Trading System,' awards were presented to individuals and organizations from various fields, including emission allowance companies, local governments, and related institutions, who have worked to reduce greenhouse gases and activate the emissions trading market.

Kim Wan-seop, Minister of Environment, stated, "To simultaneously achieve greenhouse gas reduction and strengthen industrial competitiveness, we must pool everyone's capabilities," adding, "We will strive to further develop the emissions trading system through this commemorative event so that it can play a key role in South Korea's carbon neutrality."

Started in January 2015, the Greenhouse Gas Emissions Trading System sets emission allowances (emission permits) for companies with high greenhouse gas emissions, allowing companies with surplus or deficit allowances to buy and sell emission permits within the set limits. The system is significant in that it enables companies to autonomously choose between direct reduction or purchasing emission permits according to their diverse industrial characteristics and reduction capacities, thereby efficiently achieving greenhouse gas reduction targets.

Currently, the system manages 74% of the national greenhouse gas emissions, covering 69 industries and 684 companies. Notably, the volume of emission permit trading, which was 5.66 million tons in the early stage of the system in 2015, increased about 20 times to 111.24 million tons as of last year (2024).

At the event, a business agreement ceremony was also held to introduce financial products linked to emission permits. The agreement aims to establish a cooperative foundation to introduce various emission permit-linked financial products such as futures by promoting the participation of third parties, including asset management companies, in the emission permit market. The emission permit trading platform operated by the Korea Exchange currently allows participation not only from designated companies but also from eight market makers and 21 securities firms.

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