The government will allocate a total of 2.36299 billion tons (t) of greenhouse gas emission permits to 772 corporations for transactions from next year through 2030.
The greenhouse gas emissions trading scheme is a system that allows corporations to emit greenhouse gases only within the scope of the permits they hold, and allows shortages or surpluses to be traded in the market.
According to the Ministry of Climate, Energy and Environment, the total allowed emissions for the 4th planning period (2026–2030) of the emissions transaction scheme is 2.36299 billion t. That is a 22.48% decrease from 3.04826 billion t in the 3rd planning period (2021–2025).
By institutional sector, 795.75 million t were allocated to 59 corporations in the power generation sector, which includes business sites engaged in electricity production and sales. In sectors other than power generation—industry, transport, and buildings—1.56724 billion t were allocated to 713 corporations.
The corporations will receive free allocation permits by year over the next five years. The paid allocation volume will be held by the government and supplied through auctions during the 4th planning period.
The climate ministry also said, "We will reclaim 23.95 million t of permits that were over-allocated to the power generation institutional sector during the 3rd planning period from corporations," and noted, "Considering the remaining period and the impact on the permit market, we will also allow partitioning payments."
Oil-yeong Oh, director general for Climate and Energy Policy at the climate ministry, said, "The 4th planning period of the emissions transaction scheme is an important time to gauge whether the 2030 Nationally Determined Contribution (NDC) will be achieved," adding, "We will communicate regularly with corporations and operate the system stably."