Seoul, Nov 23 South Korea will expand its greenhouse gas emission permit trading system this week, allowing transactions like stocks, the climate ministry said on Sunday.
Starting Monday, financial institutions, such as banks and insurance firms, and pension funds will be allowed to open accounts with securities firms and conduct emission permits trading through their trading platforms, according to the Ministry of Climate, Energy and Environment.
Until now, emission permits have only been allowed to be traded directly through the Korea Exchange, the main stock market operator, and only by designated companies, reports Yonhap news agency.
Trading hours will be from 10 a.m. to 12 p.m., while permit auctions will run for an hour from 2 p.m. and over-the-counter trading for three hours starting from 2 p.m.
The ministry said the new trading system for emission permits is expected to make transactions more convenient for companies and increase trading volumes through the participation of financial institutions.
The new system will also pave the way for the introduction of a futures market for emissions trading and related financial products, it added.
Meanwhile, a presidential commission said it has approved a goal to reduce South Korea's greenhouse gas emissions by 53-61 percent from 2018 levels by 2035 in a bid to accelerate the transition to carbon neutrality while enhancing industrial competitiveness.
The Presidential Commission on Carbon Neutrality and Green Growth said it endorsed the nationally determined contribution (NDC) target for 2035, slightly higher than the government's initial proposal to cut the emissions by 50-60 percent.
The government will finalise the emissions goal at a Cabinet meeting Tuesday and officially announce the plan at the 30th United Nations Climate Change Conference (COP30) in Belem, Brazil, which begins on Tuesday and runs through Nov. 21, the commission said in a release.
Under the Paris Agreement, each country is required to submit and update its NDC every five years, outlining efforts to curb greenhouse gas emissions.
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