The government adopted a bill Tuesday to oblige companies that emit at least 100,000 metric tons of carbon dioxide a year to participate in the country's carbon emissions trading system.
According to the bill to revise the law on promoting green transformation, which the government abbreviates as GX, the obligation is expected to apply to 300 to 400 companies, particularly those in high-emitting industries including steelmaking.
Under the emissions trading system, to be introduced in fiscal 2026, the government will allocate CO2 emission quotas to participating companies every fiscal year.
Companies with emissions exceeding their quotas will be required to buy quotas on the trading market operated by the public-private GX Acceleration Agency.
Those that fail to procure additional quotas for their excess emissions will be required to pay a surcharge of 10% on top of the maximum trading price.
Meanwhile, companies with lower emissions than their quotas can sell or carry over their surplus quotas.
The government also adopted a bill to oblige manufacturers to periodically report plans and records of their use of recycled materials, a move mainly aimed at companies that use large amounts of plastics to make their products.
The bill to revise the law to promote effective resources utilization also includes the establishment of a system for certifying products that are easy to recycle and lead to the efficient use of resources.
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