Republic of Korea

The Carbon Neutrality Act is discussed as a means to achieve the mitigation and adaptation targets in the Enhanced Update of the NDC. This Act seeks to strengthen mitigation and adaptation measures, and includes five key pillars:

1. Climate impact assessment;
2. Climate-responsive budgeting;
3. Emissions Trading Scheme (K-ETS)
4. Adaptation measures for the climate crisis; and
5. The designation of special areas and establishment of support centers for the just transition.

A 2050 Carbon Neutrality Commission has been established aid in the country’s transition. Sectoral strategies have likewise been developed to achieve the 2050 goal, in addition to national plans such as the Basic Plan for Carbon Neutrality and Green Growth The government has also announced that annual plans per sector will be crafted to achieve the NDC, which the Carbon Neutrality Commission will release to the public upon review.

The Republic of Korea also plans to reduce GHG emissions through market-based mechanisms under the K-ETS. The Third Basic Plan for the K-ETS for 2021-2030 was developed in 2019, and this “sets out ways of ETS operation for the next decade, including [through] effective reduction measures, improved allocation methods, enhanced market functions, and linkage and collaboration with international carbon markets for contributing to achieving the 2030 target.”

Finally, the Korea Climate Action Fund will be established to finance the commitments reflected in the updated enhanced NDC.