Under the current Act, the Government shall establishe a basic plan and allocation plan for the emissions trading system, either designate or establish and operate an emission permits exchange, and may take measures for stabilizing markets for trading emission permits in order to achieve its greenhouse-gas reduction target.

However, due to frequent changes in competent authorities and government policies, market imperfections tend to worsen, leading to certain side effects such as sudden price hikes in emission permits or damage to industry competitiveness, etc. Therefore, there is a need to make improvements i) to ensure consistency in government policies to enable market participants to predict government policies and ii) to secure market stability.

In response, this Amendment aims to require the Government to assess performance together with the outcomes of the emissions allocation plan, to carry out impact assessment on national industry competitiveness, and then report the content thereof each year to the competent standing committee of the National Assembly, thereby ensuring the transparency and predictability of allocation of emission permits or damage to industrial competitiveness (Article 5, Article 6, Article 5-2, newly inserted).

Require the Government, for each year, to conduct performance evaluation by rounding up performance according to allocation plan and an impact assessment on national industrial competitiveness (Article 5, Article 6)

Require the Government, upon finalizing the major contents, enforcement plan for the relevant year, performance for the previous year, performance evaluation, and impact assessment on national industrial competitiveness, to make a report without delay to the competent standing committee of the National Assembly (Article 5-2)