Bericht

Approaches to enhance the market functionality of the K-ETS

South Korea has set ambitious greenhouse gas (GHG) emission reduction targets. However, the country currently confronts a decline in the price of emission permits. This downward trend could obstruct the successful realization of GHG objectives through market mechanisms. The current emissions trading scheme (ETS) restricts banking of excess emission allowances, which has been identified as the main reason of the ongoing price decline. Consequently, this restriction hinders the adequate reflection of updated targets within the emissions trading market. To address this issue and avert potential shocks from a substantial reduction in emission allowance supply during Phase IV, it is necessary to relax the banking restrictions. At the same time, to proactively manage potential price escalations resulting from eased restrictions on permit banking, supplementary measures are required. These measures could include the introduction of explicit market stability mechanisms utilizing allowance reserves and the expansion of allowance supply channels.

Sprache
Englisch

Erschienen in
Series: KDI Focus ; No. 123

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Yoon, Yeochang
Ereignis
Veröffentlichung
(wer)
Korea Development Institute (KDI)
(wo)
Sejong
(wann)
2023

DOI
doi:10.22740/kdi.focus.e.2023.123
Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Bericht

Beteiligte

  • Yoon, Yeochang
  • Korea Development Institute (KDI)

Entstanden

  • 2023

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