Daegu City secures ₩1.23 billion from carbon credit sales
Daegu City secured 1.23 billion KRW by selling 43,000 tons of surplus carbon credits generated from greenhouse gas reduction efforts.
Our take
Does Korea's emissions trading scheme give municipalities a reason to host solar and biogas projects?
Korea's emissions trading scheme gives municipalities a modest reason to host solar and biogas, since surplus allowances become city revenue, but the value goes to the city as emitter, not to project owners.
The city carried part of its surplus forward against tighter future allocations, so surpluses are not a reliable income stream. Whether a third-party project owner shares the value depends on contract terms, and the article describes none.
For investors — Solar and biogas developers working with municipalities under the emissions trading scheme should set out in the contract how any allowance value from lower facility emissions is shared, since no such arrangement is described.
Watch: Local government reports revenue generation from carbon credit sales.
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