Linking Emissions Trading Schemes: Considerations and Recommendations for a Joint EU-Korean Carbon Market

As emissions trading schemes (ETS) continue to emerge around the world, governments are starting to consider and implement linkages between their domestic schemes. This paper analyses the case for a link between the EU ETS and the upcoming South Korean ETS. The authors assess key features of the planned South Korean ETS to determine elements that have the potential to facilitate or prevent linkage. The paper draws on lessons from previous linkage examples and makes concrete policy recommendations for the South Korean case. The linkage debate is placed in the larger context of international cooperation on climate change.