The primary stock exchange in South Korea is set to introduce carbon-emissions futures in 2026, marking a significant step toward strengthening its emissions-trading system and supporting its climate ambitions, Bloomberg reported on Monday.
The Korea Stock Exchange (KRX) plans to offer futures contracts linked to Korean Allowance Units (KAUs), which are tradable permits allocated to companies to limit greenhouse gas emissions.
The goal is to improve liquidity in the carbon market and provide businesses with tools to manage risks related to emissions costs.
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The futures will deepen the carbon market and support the nation’s net-zero push, a KRX representative told Bloomberg.
Ahead of the futures launch in 2026, South Korea will begin consignment trading in the latter half of 2025.
This system will allow companies to sell their unused carbon allowances through a third-party auction platform, promoting flexibility and broader participation.
South Korea introduced its cap-and-trade system in 2015 but has faced challenges such as low trading activity and price volatility.
By launching futures, the government hopes to enhance the carbon market’s effectiveness.
Despite its reliance on fossil fuels, South Korea has pledged to become carbon neutral by 2050 and reduce emissions by 40% from 2018 levels by 2030.
As Asia’s fourth-largest economy takes this next step, the futures market is expected to serve both environmental and economic goals—offering businesses more predictability while pushing for sustainable growth.
Read more: South Korea Passes New Law To Support Carbon Capture
