According to Yonhap News,

Seoul will operate its greenhouse gas emission permit trading system in lockstep with the minimum reduction target under its nationally determined contribution (NDC), the government said Tuesday, in a move aimed at minimizing the additional burden on local businesses.

The emission permit trading system will be operated under the goal of meeting the baseline NDC target for 2035, which was set at a 53-61 percent reduction in emissions from 2018 levels, according to the industry and climate ministries.

The measure was announced at a meeting between the government and the private industry held to discuss a road map for achieving the 2035 target.

Following the finalization of the NDC target earlier this month, the business community has expressed concerns that the carbon reduction plan may deal a harsh blow to key industries, such as automobiles, steel and petrochemicals, as they will face higher financial burdens in building carbon reduction facilities and purchasing emission credits.

To ease the burden on the private industry, the government also plans to recognize Korean companies' overseas projects that reduce carbon emissions and hand out additional emission permits when companies expand their facilities.

The Ministry of Trade, Industry and Resources, in particular, said it will initiate a 5 trillion-won (US$3.4 billion) project next year to research and develop carbon neutrality technologies.

It will also support companies' facility upgrades for emission reduction by providing various incentives, while fostering partnerships between conglomerates and small and medium-sized enterprises for joint efforts to achieve carbon neutrality.

"The government will actively support the 2035 NDC target so that it becomes a turning point for our industries to transition toward low carbon and high-value production," an industry ministry official said.



nyway@yna.co.kr
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Source: Yonhap News (November 25, 2025)