Work Flow of Allocation, Trading and Submission of Emissions Permits
  1. National reduction target set
    (Jan. 2014)
    The annual reduction target propoal from greenhouse gas reduction roadmap
  2. Decision on total issuance of emissions permits and allocation quantity for each sector
    (Sep. 2014, Allocation Plan)
    Decisions were made by reflecting the greenhouse gas emissions target and reduction target for sectors that have been suggested by the greenhouse gas reduction roadmap
  3. Selection of Participants
    (Sep. 2014)
    Participation is limited to companies of which greenhouse gas emissions are above a certain level
    A company with the average greenhouse gas emissions for the most recent 3 years at least 125,000 CO2 tons or a workplace with the average greenhouse gas emissions for the most recent 3 years at least 25,000 CO2 tons
  4. Allocation of Emissions Permits to Each Company
    (Nov. 2014)
    Decision by the joint work team composed of civil experts and the Allocation Decision & Deliberation Committee (Chairman: Deputy Minister of Environment)
  5. Trading
    (Jan. 2015- Jun. 2016)
    Trading of emissions permits at the Emissions Permits Exchange (KRX) or over-the-counter market
  6. Submission of Specifications
    (Mar. 2016)
    Submission of specifications on actual emissions which are prepared by the method enabling MRV (Measuring, Reporting & Verifying)
  7. Emissions Certifications
    (May 2016)
    Certification of actual emissions produced by an allocated company (Deliberation at the Emissions Certification Committee)
  8. Application for carry-over / borrowing
    (Jun. 2016)
    • When the emissions permits owned are greater than the actual emissions, the permits are sold in the market or carried over to next year; and
    • When the emissions permits owned are less than the actual emissions, the permits are bought in the market or borrowed from next year.
    Application for carrying over or borrowing is to be filed within 10 days after the certification by Emissions Certification Committee.
  9. Approval of Carry-over / Borrowing
    (~Jun. 20, 2016)
    Decision on whether to approve the applications for carrying over to next year and borrowing
  10. Submission of Emissions Permits and Imposition of Penalty
    (Jun. 2016)
    • Submission of the emissions permits of which quantity equals the certified emissions
    • Imposition of penalty if the submitted emissions permits are less than the certified emissions
      (§33 of the Act)
Structure of the Emissions Market
Structure of the Emissions Trading Market System
  • Investor who have signed up for the membership of the emissions permits market can submit orders using HTS, and the orders are executed, cleared and settled by KRX Market System.
  • Investors can participate in trading by registering their allocated emissions permits with the GIR emissions registry, and the trades of emissions permits are settled through the KRX’s account at the GIR emissions registry and the payment is made through the KRX’s account at settlement banks.
Content Manager
  • Emissions Market 051-662-2825