SEOUL, Nov. 24 (Korea Bizwire) — South Korean companies can now trade carbon emissions permits through securities firms, in a shift designed to make the market more accessible and liquid, the Ministry of Climate, Energy and Environment said Sunday.
The change, effective Monday, allows firms to open brokerage accounts and trade emissions rights using the same systems they use for stocks.
Until now, companies allocated emissions permits were required to trade directly on the Korea Exchange. A legal revision last year created a new category of “emissions trading brokerage services,” and NH Investment & Securities was selected in March as the first pilot participant.
Since then, the greenhouse gas information center and the Korea Exchange have worked with NH to build the new trading system.
Companies wishing to use brokerage services must apply to change their trading method in the emissions registry and then open a brokerage account. They may choose either direct trading or brokerage trading, but not both.
The 2024 legal revision also opened the emissions market to a broader range of financial institutions, including asset managers, broker-dealers, banks, insurers, and pension funds, all of which may participate only through brokerage-based trading.
With the shift to brokerage trading, the start time for over-the-counter emissions trades and auctions will move from 1 p.m. to 2 p.m., the ministry added.
Ashley Song (ashley@koreabizwire.com)
