The Paris Agreement reached an agreement between 195 countries to limit the increase in global average temperature to 1.5℃, exceeding the 2℃ target compared to Pre-industrial Era. Accordingly, Korean Government has declared to voluntarily reduce 314.37 million tons, 37% of the 2030 Business-as-Usual in the future, in the Intended Nationally Determined Contributions (INDC) for the implementation of the Paris Agreement. In addition, the “2030 National Greenhouse Gas Reduction Basic Roadmap” was finalized and reduction targets for each sector were assigned by the Korean Government.
On October 28th 2020, President Moon Jae-in said, "We will move forward with the international community to actively respond to climate change and aim for 'carbon neutrality in 2050'." In order to reduce GHG emissions, the government enacted the “Act on the Allocation and Trading of Greenhouse-Gas Emission Permits” based on Article 46 of the “Framework Act on Low Carbon, Green Growth” and introduced the emission trading system. Head of central administrative agency plans to select a company to be allocated to set the total emission allowance and quota for each company, and gradually expand the paid allocation ratio from 3% to 10% (2021-2025). In addition, another GHG reduction plan is to build a foundation for storing up to 4 million tons of greenhouse gases and 6.3 million tons per year by promoting the CCUS integrated demonstration project by stages such as Capture and Utilization.
Meanwhile, the EU revised the guidelines on the emission trading system. This revised guidance is explicitly included in Annex I by CCS in activities covered by the EU ETS. Therefore, in accordance with the CCS guidelines, carbon dioxide collected, transported and stored is evaluated as not being released.
Korean Government is operating an emission trading system in accordance with the “Act on the Allocation and Trading of Greenhouse-Gas Emission Permits”, but there are no regulations in connection with the CCUS Act to be introduced. Therefore, I have reviewed the EU-ETS Directive and tried to suggest plan for linking 「Act on the Allocation and Transaction of Greenhouse Gas Emission Permits」 and the CCUS Act. I hope this idea will be enacted successfully.