(Background)

As greenhouse gas emissions rights are allocated based on emissions performance in the standard period, companies that have started a new business without past performance but take a long time to reach normal scale due to the nature of the business are at a disadvantage in terms of allocation compared to existing companies.

Even through the Ministry of Environment Notice No. 2022-277, ‘Guidelines for Greenhouse Gas Emission Allowance and Cancellation’, was revised in 2021, the standards to be applied are excessively high, more than twice the expected emissions for the implementation year. Thereby, it is not helpful to reduce the burden on new companies. 

(Grievance)

Request to exempt from preparing a statement using the calculation method when allocating carbon credits.

Request to apply the factor calculated using the supplier's emission factor calculation method for the emission factor application method

Among the methods of applying the additional quota calculation method for each company, 'greenhouse gas emissions in the corresponding implementation year' must be judged based on the emissions in the main part of the statement.

(Resolution)

OFIO officially submitted the suggestions with regard to additional allocation of carbon emissions quota and emission standards.

After inquiring about the revision and effective date of the Ministry of Environment's Climate Economy Department guidelines, application standards, and additional quota allocation standards, OFIO informed foreign-invested companies of the answers received from the ministry. 

(Result)

Through the revision of Guidelines for Greenhouse Gas Emission  Allowance and Cancellation Article 15-1, a criteria for application was eased; from 2 times increase to 1.5 times increase in emission amount (Dec. 2023.)