National Emissions Allowance Allocation Plan - Phase 4 (2026-2030)

Country / jurisdiction: Korea · Year: 2026 · Status: In force · Level: National · Type: Voluntary

The Phase 4 National Emissions Allowance Allocation Plan (2026-2030) strengthens Korea’s emissions trading scheme by setting a total emissions cap of approximately 2.54 GtCO₂e over the period and introducing differentiated annual reduction rates across sectors. The plan increases the share of auctioned allowances, with the power sector reaching up to 50% auctioning by 2030, while maintaining full free allocation for emissions-intensive trade-exposed industries. It also introduces a Korean Market Stability Reserve (K-MSR) to manage allowance supply and improve market stability. The scheme remains the central economy-wide carbon pricing instrument and is aligned with Korea’s enhanced 2030 emissions reduction target and long-term carbon neutrality pathway.

Official source: https://www.me.go.kr/eng/web/board/read.do%3Bjsessionid%3DNzheNXgW1wdQoh9bhvvoMURWh6wsCSGGBN8yryIq.mehome2?boardCategoryId=&boardId=1820100&boardMasterId=522&decorator=&maxIndexPages=10&maxPageItems=10&menuId=461&orgCd=&pagerOffset=0&searchKey=&searchValue