South Korea on Friday issued 2.9 million carbon offsets, adding nearly 40% to existing supply, though CO2 prices in the nation’s emissions trading scheme showed no sign of weakening.
The Korean Offset Credits (KOCs) were handed out to 18 different projects, according to sources with access to the restricted government data.
Korea has now issued a total 10.22 million KOCs to date, primarily from domestic projects registered under the CDM where the owners have cancelled the UN-issued CERs.
When KOCs are converted into Korean Carbon Units (KCUs), they are eligible for use in the nation’s emissions trading scheme, which industry says is under-allocated by 10-20%.
The fresh offset supply had no immediate impact on market prices, which are still at all-time highs amid a lack of sellers.
KCUs closed unchanged on the Korea Exchange (KRX) Friday at 18,500 won ($15.92), with no trades going through.
Korean Allowance Units ended at 18,450 won, with 15,500 permits traded.
KOCs only trade in the opaque over-the-counter market, although the KRX plans to list the credits from May.
By Stian Reklev – firstname.lastname@example.org