W10 K ETS 

On Monday (6 Mar), the Korean carbon market opened the week at KRW 12,950/t, up 1.5% from last Friday’s closing of KRW 13,000/t. KAU22 then corrected up on Wednesday (8 Mar), followed by one more leap on Friday (10 Mar), and close at KRW 13,200/t, up 1.5% week-on-week. A total of 442, 707 KAUs were traded throughout the week at an average price of KRW 12,996/t.

On Wednesday (8 Mar), March Auction was conducted, putting out 1 Mt of KAU22 for sale. This month’s auction was largely undersubscribed with bids covering less than 70%, in line with the auction results from the previous months. This month’s auction clearing price, KRW 12,700/t, was again below the secondary market price level, as a government-set reserve price determines the clearing price in the event of an auction undersubscription.

Although the Korea ETS has been rangebound due to oversupply and policy uncertainty, more market activities are expected as the first compliance deadline in 2023 is coming up. ETS companies should submit their emissions reports enclosing the applications for the adjustment of free allowances.

As of now (10 Mar), 1 Mt KAU22 are scheduled to be offered for each month during the first half of 2023. Nevertheless, it is possible that the Korean government adjusts the volume of allowances to be injected in the upcoming April, March, and June auctions. The government will project the carbon market supply and demand as it collects emissions reports from the ETS compliance companies.

On 22 March, a public hearing on the Carbon Neutrality and Green Growth Basic Plan (‘Basic Plan’) is scheduled for March 22. The Basic Plan should contain the annual/sector-specific GHG emission reduction trajectory upon which the ETS emissions cap is calculated. As per the Carbon Neutrality Framework Act, the Basic Plan shall be established no later than 25 March this year. Yet, considering procedures awaiting such as the committee and the council meetings, it is highly unlikely that the Basic Plan will be finalised by 25 March.

 to access a full report on this week’s Korea carbon market provided by Carbon-i (

For more information related to the Korea ETS please contact 

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