Starting next year through 2030, the government will allocate a total of 2.36299 billion tons (t) of greenhouse gas emissions allowances to 772 corporations.
The greenhouse gas emissions trading scheme requires corporations to emit within the allowances they hold, and allows any shortfall or surplus to be traded in the market.
According to the Ministry of Climate, Energy and Environment, the total emissions cap for the fourth planning period (2026–2030) of the emissions allowance trading scheme is 2.36299 billion t. That is down 17.91% from 2.87841 billion t in the third planning period (2021–2025).
By institutional sector, 795.75 million t were allocated to 59 corporations in the power generation institutional sector, which includes business sites for power production and sales. A total of 1.56724 billion t were allocated to 713 corporations in non-power institutional sectors such as industry, transport, and buildings.
The corporations will receive free allocations of emissions allowances each year over the next five years. The government will retain the paid allocation volume and plans to supply it by auction during the fourth planning period.
The ministry also said, "We will retrieve 23.95 million t of allowances that were over-allocated to the power generation institutional sector during the third planning period from corporations," and noted, "Considering the remaining period and the impact on the allowance market, we will also allow installment payments."
Oil-yeong, director general for climate and energy policy at the ministry, said, "The fourth planning period of the emissions allowance transaction scheme is a crucial time to gauge whether the 2030 national greenhouse gas reduction target (NDC) will be met," adding, "We will communicate regularly with corporations and run the scheme stably."