Emission Trading System - South Korea

South Korea

The government income in the Emission Trading System market is projected to reach €235.20m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.46% resulting in a projected total amount of €292.50m by 2029.
From a global comparison perspective it is shown that the highest government income is reached in Germany (€11,670.00m in 2024).
In the Emission Trading System market, the number of contracts is expected to amount to 20 by 2029.

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Analyst Opinion

The Emission Trading System market in South Korea is witnessing a shift in dynamics driven by changing customer preferences, evolving trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in South Korea are increasingly prioritizing sustainable and environmentally friendly practices. This shift in mindset is leading to a growing demand for emission credits and a willingness to participate in emissions trading schemes. Companies are under pressure to comply with regulations and meet emission reduction targets, driving the need for more efficient trading platforms.

Trends in the market: In South Korea, the Emission Trading System market is experiencing a trend towards digitalization and automation. This trend is streamlining the trading process, making it more accessible and efficient for market participants. Additionally, there is a growing focus on innovation in financial derivatives related to emissions trading, offering new opportunities for investors and traders in the market.

Local special circumstances: South Korea's unique geographical and industrial landscape plays a significant role in shaping the Emission Trading System market. The country's heavy reliance on industries such as manufacturing and energy production has led to a concentrated effort to reduce emissions. This localized focus on emission reduction initiatives is driving the development of the market in South Korea.

Underlying macroeconomic factors: The Emission Trading System market in South Korea is also influenced by broader macroeconomic factors. Economic stability, government policies, and international trade agreements all play a role in shaping the market dynamics. As South Korea strives to achieve its emission reduction goals and meet international standards, the Emission Trading System market is expected to continue evolving in response to these macroeconomic factors.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.