The South Korean government plans to directly purchase up to 200,000 tons of high-quality carbon credits to stimulate the voluntary carbon market. It aims to enhance the quality and reliability of domestic carbon credits by strengthening cooperation with the Qatar Global Carbon Council (GCC) and promoting connections with international markets.
On September 2, Park Hong-keun, Minister of the Office for Government Policy Coordination, met with Yousef Mohammed Al-Hor, Chairman of the GCC, to discuss collaboration for revitalizing the voluntary carbon market between South Korea and Qatar.
During the meeting, Minister Park shared key aspects of South Korea's carbon neutrality policies, including the Nationally Determined Contribution (NDC), energy transition focused on renewable energy, the Emissions Trading System (ETS), and the Climate Response Fund, as well as the direction for establishing a 'Korean-style voluntary carbon market' announced in April.
The government is committed to enhancing carbon reduction efforts and expanding the climate tech industry by activating the voluntary carbon market (VCM). Since the ETS covers about 70% of the country's greenhouse gas emissions, the government aims to foster a market that encourages non-regulated companies to voluntarily reduce emissions.
To achieve this, the government plans to establish regulations through the enactment of a voluntary carbon market law and open an exchange to create an integrated trading infrastructure. Additionally, it will connect supply and demand for carbon credits through public-private alliances.
Specifically, to generate initial demand in the voluntary carbon market, the government intends to establish a new entity tentatively named the 'Korea Carbon Center' next year and purchase up to 200,000 tons of high-quality carbon credits at the central government level. This initiative aims to responsibly address the climate crisis while also creating initial demand in the private market, given that the government emits approximately 900,000 tons of greenhouse gases annually.
Minister Park also requested that the GCC actively contribute to enhancing the domestic certification system as a qualified institution under the International Civil Aviation Organization's (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and the Integrity Council for the Voluntary Carbon Market (ICVCM).
The goal is to leverage the GCC's global certification experience and rigorous verification system to improve the quality and reliability of carbon credits produced domestically.
Furthermore, Minister Park urged Chairman Al-Hor to facilitate investments from global funds, such as the Qatar Sovereign Fund, into domestic carbon neutrality projects focused on carbon removal and energy transition. He also proposed collaboration on the international stage, including at the UN Climate Change Conference and multilateral development bank projects.
Chairman Al-Hor praised South Korea's NDC goals and efforts to establish a carbon market, expressing a commitment to actively cooperate to help the Korean-style voluntary carbon market grow into a global hub.
Meanwhile, the Office for Government Policy Coordination signed a tripartite memorandum of understanding (MOU) with the GCC and the Korean Chamber of Commerce and Industry (KCCI) on the same day.
Attendees included Jo Yong-beom, Vice Minister of the Office for Government Policy Coordination, Chairman Al-Hor of the GCC, and Jo Young-jun, head of the KCCI's Sustainable Management Center. The three organizations plan to combine the GCC's certification experience in the voluntary carbon market with the KCCI's domestic project base to enhance the international usability of carbon credits produced in South Korea.
Under the agreement, the three entities will share methodologies for certifying voluntary carbon credits and expertise in managing registries, while seeking international mutual recognition and linkage for high-quality reduction achievements. They will also pursue joint cooperation projects to respond to international carbon market norms, such as CORSIA and Article 6 of the Paris Agreement.
Vice Minister Jo stated, "To respond to the climate crisis, it is essential to activate the voluntary carbon market, transforming carbon reduction into economic activities that create new value and opportunities. By combining the policy and financial support of the Office for Government Policy Coordination, the GCC's rigorous and transparent verification system, and the KCCI's project base for carbon reduction, we will establish a new model of carbon market cooperation connecting Asia and the Middle East."
* This article has been translated by AI.
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