How China, Japan and South Korea can make their carbon neutral goals a reality – and drive change worldwide
- China, Japan and South Korea can be leaders in the fight against climate change if they ensure policies align with their ambitious goals
- Emissions trading systems with progressively tightening emissions caps are likely to play a central role
With these countries responsible for one-third of global emissions, East Asia’s growing ambition is the biggest international climate change development since the Paris Agreement was ratified.
Emissions trading systems (ETS) with progressively tightening emissions caps are likely to play a central role in achieving net-zero goals. They can guarantee achieving targets, enable cost-effective compliance, safeguard industrial competitiveness and provide funds to invest in advanced greenhouse gas mitigation technology.
In East Asia, South Korea is the front runner. The K-ETS covers 70 per cent of the country’s greenhouse gas emissions, has been in operation for nearly six years and is aligned with the country’s 2030 emission reduction target. However, following the announcement of the net-zero greenhouse emissions target by 2050, the 2030 target (and ETS cap) should be tightened.
The mechanism will impose extra costs on exports to the EU except for jurisdictions with similar policies and ambition to the EU under the Paris Agreement. This will also drive higher levels of auctioning of emission allowances, where allowances are purchased rather than given freely.
