KRX Opens Emissions Trading Market On January 12, 2015

The Ministry of Environment and the Korea Exchange (KRX) announced that they will hold an opening ceremony of the emissions trading market at the KRX's main office located in Busan and kick off trading on January 12, 2015. 

The emissions trading market is opened pursuant to the Emissions Trading Scheme implemented since January 1, 2015 and trades KAU (Allowances allotted to corporations) and KCU (offsetting credit like CERs). 

Market participants will be limited to corporations allotted with emission allowances and public financial institutions such as Industrial Bank of Korea, Korea Development bank and Korea Exim Bank through 2020 pursuant to the addendum of the Act on the Allowance and Trading of Emission Rights. Therefore, it is expected that most of the trading will be conducted by corporations that demand the emission rights. 

The Ministry of Environment designated the KRX as an emissions trading market, and the Gas Inventory & Research Center of Korea (GIR) will be in charge of managing the ledger of emission rights. 

In the afternoon on the same day, a workshop commemorating the opening of the emissions trading market will be held at Busan Lotte Hotel to discuss various perspectives and major issues. 

The KRX professionals and policy makers of the Ministry of Environment said, “Considering such overseas pilot projects as EU-ETS and Chinese ETS, and early stage cases in foreign emissions trading markets, it is anticipated that the trading volume at the initial stage of the KRX emissions market will be rather small. However, the permission on emission rights trading itself will trigger the reduction of gas emission.” They also added, “The workshop will be an opportunity to share insights on how to vitalize the emissions trading market.”