The Ministry of Environment (Minister Kim Sunghwan) will hold a public hearing to gather broad opinions on the “National Emission Allowances Allocation Plan (Draft) for the 4th Commitment Period (2026-2030)” on September 12 at 2 p.m. at the Korea Finance for Construction (KFINCO)* (4th floor, main conference room).

* 15 Boramae-ro 5-gil, Dongjak-gu, Seoul (Sindaebang-dong, KFINCO)

Considering the heightened public interest in the Emissions Trading Scheme, which is a key component of the national greenhouse gas reduction policy, this public hearing will be broadcast live on the Ministry of Environment’s YouTube channel* in addition to in-person participation. An online public hearing through e-People will also be held from September 12 to 15.

* Participation is available through the Ministry of Environment LIVE YouTube channel (http://www.youtube.com/mevnewsroom).

At the public hearing, the draft of the 4th Allocation Plan, which presents comprehensive standards for greenhouse gas emission allowances allocation over the 5-year 4th commitment period, and the draft amendment to the 3rd Allocation Plan, aimed at correcting the overallocation* in the power generation sector during the 3rd commitment period, will be announced. A public discussion with participation from academia, industry, civil society, and experts will follow to exchange a wide range of opinions.

* Due to the omission of energy statistics (coal consumption by private power generation companies), national greenhouse gas emissions from 2016 to 2022 were underestimated, resulting in an overallocation of the total emission allowances for the general power generation sector (49 companies) during the 3rd commitment period.  

In the 4th commitment period, more than 700 companies that meet or exceed the legal threshold* will participate in the Emissions Trading Scheme. Under the 4th Master Plan for the Emissions Trading Scheme (2026-2035), the allocation targets will be classified into two sectors: power generation and non-power generation.

* Companies with an average annual emissions of 125,000 tons of CO2-eq or more during the baseline years (2022-2024), or those that own a facility with annual emissions of 25,000 tons of CO2-eq or more.

The total emission allowances will be set to address the surplus allowances and price decline issues from the 3rd commitment period, while also encouraging companies to invest in greenhouse gas reduction. The reserve for market stabilization, incorporated within the total emission allowances under the 4th Master Plan, will be calculated by comprehensively considering corporate burdens and the potential for future economic fluctuations.

Paid allocation will be expanded and differentiated between the power generation sector and the non-power generation sector in accordance with the 4th Master Plan. However, industries at risk of carbon leakage, such as the steel and petrochemicals industries, which account for most high greenhouse gas-emitting sectors, as well as institutions serving the public interest, will continue to receive free allocations as in the 3rd commitment period.  

The Ministry of Environment will review and incorporate the opinions presented at this public hearing to finalize the “National Emission Allowances Allocation Plan (Draft) for the 4th Commitment Period (2026-2030).” The plan will then go through deliberation by the Allocation Committee (chaired by the Minister of Economy and Finance), the Presidential Commission on Carbon Neutrality and Green Growth, and the Cabinet Council, and is scheduled to be finalized within the second half of this year. 

Opinions on the draft of the 4th Allocation Plan can be submitted either through real-time comments on the online channel during the public hearing or via email (werb12@korea.kr) within three days, by September 15.

Oh Il-young, Director General for Climate Change and International Cooperation Bureau at the Ministry of Environment, stated, “The 4th commitment period is a critical time that will determine whether Korea achieves its 2030 NDC in the international community.” He added, “We will thoroughly review the opinions raised at this public hearing and establish a plan that reflects the current status of companies and the specific characteristics of each industry to efficiently achieve the NDC.”

For further information, please contact the Public Relations Division. 

Contact person: Gina Lee, foreign media spokesperson

Phone: +82-44-201-6055

Email: gcjgina @gmail.com