ICF is leading a major three-year project, funded by the European Commission, to provide technical assistance to the Republic of Korea for the implementation of the Korean Emissions Trading System (KETS). The KETS will be a valuable tool to help Korea cost-effectively meet its greenhouse gas (GHG) emission reduction targets, which is especially important since Korea has become the OECD's fastest-growing GHG emitter.
The EU’s climate policy includes an objective to develop a global carbon market to support cost-effective reductions in greenhouse gas (GHG) emissions. The KETS is strategically significant to the development of the global carbon market as it is the first national ETS in East Asia. Its success will be influential to China’s National ETS (due to start in 2017), and it will be a key reference for other countries developing their ETSs.
A wide range of technical assistance activities in Korea and in the EU will support the implementation and operation of the KETS in its first phase, and the development of the KETS in its second phase, with the following results:
- Public and private sector organizations receive support through technical workshops on benchmark (BM) based allocation, new mitigation technologies, auctioning and verification; strategic workshops including roundtable expert-to-expert dialogues and evaluation and future development of KETS; and knowledge management including Consultation Hotline for government, training of KETS Helpdesk trainers, project website, and information materials.
- KETS participants are more familiar with emissions trading so as to reinforce effective decision-making and compliance strategies, through annual workshops on ETS compliance and trading strategies.
- A Korean Carbon Price Model is developed and adapted to the Korean carbon market, enabling an informed decision-making process for Korean authorities through a series of carbon price modeling workshops.
The ICF-led consortium includes Ecosian Co. Ltd, Sookmyung Women’s University and Development Solutions. The team also includes Fraunhofer Institute, DIW Berlin, Grantham Research Institute and Umweltbundesamt.