Big Emitters Still Get Exemptions
Korea's Emission Trading System(ETS) price currently stands at 13,750 won per ton. This level remains significantly lower than that of Europe, where price range from 100,000 to 140,000 won per ton, and even lower than China's, which ranges between 18,000 and 19,000 won per ton. Such relatively low pricing reflects the slow political response to the climate crisis in Korea.
According to research by U.K. scholar Abdulrafiu Abbas, delayed and gradual policy action today may lead to abrupt and distruptive stranded assets in the future. The research paper explains this through the paradox that "a gradual present creates an abrupt future".
If we examine the Ministry of Industry's position on the fourth phase of the ETS and the 2035 Nationally Determined Contribution(NDC), we can observe that certain exemptions continue to be granted to industrial sectors. This is concerning, given that a substantial share of emissions originates from industries such as steel and petrochemicals.
In this context, delays in decarbonization not only accelerate the climate crisis but may also undermine industrial stability by increasing the risk of stranded assets over the long term. A slow transition does not necessarily protect industry; rather, it may expose it to greater structural and financial instability in the future.
Today's report: Chan-soo kang(2026). [Climate Report] “South Korea’s Carbon Price Is Far Too Low — Risking a Stranded Asset Shock”. Energy Economics. https://www.ekn.kr/web/view.php?key=20260226029112800