South Korea intends to roll out its Global Verified Carbon Market (GVCM) in 2027, creating a framework for issuing and trading carbon credits generated by overseas greenhouse gas reduction projects. Under the plan, eligible credits will trade on the Korea Exchange and could be applied toward corporate environmental, social and governance (ESG) activities as well as national emissions reduction commitments.

The government finalized the detailed implementation plan on October 12 at a meeting of economic ministers in Seoul chaired by Deputy Prime Minister and Economy and Finance Minister Lee Hyung-il. Building on a roadmap announced in December 2025, the plan spells out the market's operating structure, credit verification requirements and governance arrangements.

Selective Blockchain Use in a Dual-Track System

A defining technical feature of the GVCM is the selective use of blockchain, which will record key carbon credit data such as project operators, emissions reduction volumes, unique identification numbers and approved methodologies. Remaining information will stay in conventional databases, producing a dual-track system designed to balance data integrity, operational efficiency and system stability. The approach responds to a persistent credibility challenge in international carbon markets, where inconsistent standards and questions about the environmental effectiveness of some credits have made it difficult to verify what each credit actually represents.

Trading Through the Korea Exchange

At launch, credits will be issued in standard electronic form and traded on South Korea's voluntary carbon market exchange. As market activity develops, authorities will weigh introducing digital asset-based issuance alongside conventional credits, factoring in trading volumes, regulatory developments and investor confidence.

The government has also renamed the initiative from the Global Voluntary Carbon Market to the Global Verified Carbon Market. The new designation reflects its intention to accommodate credits that qualify for use in both voluntary corporate initiatives and regulated emissions reduction programs.

Two Credit Categories Based on Host-Country Authorization

The framework divides credits into two categories, determined by whether the country hosting an emissions reduction project authorizes the international transfer of the resulting credits.

GVCM A credits will carry host-country authorization and may qualify for regulatory purposes, including national climate commitments under the Paris Agreement and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). They may also support corporate ESG initiatives.

GVCM NA credits lack the required authorization and will initially be restricted to voluntary corporate environmental activities. They could subsequently be upgraded to GVCM A status if the host country grants the necessary approval and corresponding adjustments, the accounting mechanism that prevents a single emissions reduction from being counted toward the climate targets of both the host country and the acquiring party.

South Korea is additionally evaluating whether GVCM credits could eventually be integrated into its domestic emissions trading system or greenhouse gas target management framework. Any such integration would depend on verification standards, compliance with Article 6 of the Paris Agreement, which governs cross-border cooperation on emissions reductions, and applicable domestic legal requirements.

Governance Framework to Include Developing Countries

The proposed issuing organization will comprise a board of directors, a technical oversight committee and a secretariat. Representing participating countries, the board will establish policy direction and supervise technical governance. The technical committee will oversee matters such as credit issuance, while the secretariat will manage issuance procedures, credit records and registry operations.

The Global Green Growth Institute (GGGI) is serving as the interim secretariat. A dedicated secretariat is expected to be established when the market officially launches.

The governance structure is designed to give developing countries a greater role in decision-making while respecting their sovereignty over emissions baselines, operating rules and sustainable development priorities.

Eligible project categories will reflect participating countries' development needs and South Korea's technological capabilities. Potential initiatives include mangrove restoration, agricultural waste management, methane capture and energy efficiency improvements. The government is also discussing cooperation with international institutions, including the World Bank and the Green Climate Fund, to convert emissions reductions from existing projects into GVCM credits.

International Carbon Market Growth Drives Strategy

International carbon trading is attracting greater attention as countries seek additional ways to meet their Paris Agreement commitments. Many governments face difficulties achieving their 2030 nationally determined contributions through domestic emissions reductions alone. At the same time, inconsistent standards and concerns about the environmental effectiveness of some credits have raised questions about the credibility of international carbon markets.

South Korea sees an opportunity to address these concerns through a standardized system combining verification, traceability and clear rules governing credit eligibility.

Projections from MSCI cited in the government's assessment indicate that the carbon credit market could reach $7 billion to $35 billion by 2030 and $45 billion to $250 billion by 2050.

To attract participants, South Korea plans to work with GGG through international networks, including the Indo-Pacific Economic Framework and the Asia-Pacific Carbon Market Roundtable. At the 31st United Nations Climate Change Conference, scheduled for November 2026, the government intends to pursue letters of intent with interested countries. A climate investment forum planned for December will further promote the initiative.

The government aims to identify priority project sectors during 2026, establish the issuing body in 2027 and finalize project structures before beginning full-scale operations. The GVCM is intended to strengthen confidence in cross-border carbon credits while creating a framework through which verified emissions reductions can support corporate climate initiatives and eligible national targets.

Source: CoinTrust