South Korea to Fully Launch GVCM International Carbon Market Next Year, Review Digital-Asset Credit Issuance

South Korea plans to fully launch its international carbon market next year and is also reviewing a plan to issue carbon credits in digital-asset form.

The government discussed detailed measures for the Global Voluntary Carbon Mechanism, or GVCM, at a ministerial meeting on external economic affairs on Oct. 12, Seoul Economic Daily reported.

GVCM is a market for trading greenhouse-gas reduction credits. Credits will be issued as either "GVCM A" or "GVCM NA," depending on whether the host country approves the project. Approved credits can be used to meet national greenhouse-gas reduction targets, or NDCs, and to comply with international aviation rules. Unapproved credits would be used for companies' voluntary environmental activities.

To bolster trust in trading, the government plans to record key information such as project operators and emissions reductions on a blockchain. It also plans to build a trading market using the Korea Exchange, or KRX, and is reviewing the future issuance of carbon credits in digital-asset form.

The government plans to secure countries interested in participating this year and set up an issuing body next year to flesh out the project. It will also discuss converting emissions-reduction results generated by World Bank and Green Climate Fund projects into GVCM credits.