Government Considers Issuing Carbon Credits as Digital Assets

The government is reviewing the option of issuing international carbon credits in the form of digital assets. After establishing a carbon credit trading market through the Korea Exchange (KRX), it plans to issue carbon credits in a digital asset format that allows for 24-hour trading and participation from individuals and foreigners, taking into account the legislative situation regarding digital assets. On the 12th, relevant ministries, including the Ministry of Economy and Finance, discussed the 'Detailed Implementation Plan for the Global Verified Carbon Market (GVCM)' at the 274th Foreign Economic Ministers' Meeting. GVCM is an international carbon market aimed at enhancing credibility and activating global trading in cooperation with the United Nations Framework Convention on Climate Change (UNFCCC) and the Global Green Growth Institute (GGGI). The government plans to utilize blockchain and digital assets in the recording and issuance process of carbon credits issued under GVCM. The issuance of carbon credits as digital assets will be implemented in phases, initially issuing credits electronically and establishing a trading market using KRX. While the government believes that using KRX can ensure reliability, it has determined that 24-hour trading is difficult due to the limitations of exchange operating hours and participating entities. GVCM carbon credits are divided into two types based on prior approval, and the government plans to secure participating countries this year and begin full-scale operations in 2027.

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