Seoul: The government has allocated 2.36 billion tons of greenhouse gas emission rights, which can be traded from next year until 2030, to 772 companies, the Ministry of Climate, Energy and Environment said Monday. The allocation marks a significant step in the country's efforts to manage and reduce emissions through a market-based approach.

According to Yonhap News Agency, the latest allocation was completed for the 772 firms participating in the fourth planning period (2026-2030). The greenhouse gas emissions trading system sets a cap on total emissions for major polluters, issues tradable "allowances," and lets companies buy or sell these allowances to meet their targets. This system aims to encourage reductions in greenhouse gas emissions through market principles.

The total allowable emissions for the fourth planning period are set at 2.36 billion tons, representing a 17.91 percent decrease compared to the 2.88 billion tons allowed during the third planning period (2021-2025), as noted by the ministry. This reduction underscores the government's commitment to tackling climate change by incentivizing lower emissions.

In the power generation sector, 796 million tons were allocated to 59 companies, while in the non-power generation sector, 1.57 billion tons were distributed to 713 companies. This distribution reflects the varied contributions of different sectors to the overall emissions and the need for targeted reductions across the board.