South Korea is opening its carbon-credit market to brokerage firms — a shift that could make one of Asia’s most active emissions-trading systems far more accessible to global investors watching the rise of climate-focused finance.
The Korea Exchange, the country’s main securities bourse, said it will allow securities firms to broker carbon-credit trades starting Sunday, with NH Investment & Securities becoming the first intermediary. Until now, companies and institutions needed direct membership with the exchange — a process that discouraged participation from international players.
The move comes as carbon markets around the world grow more fragmented.
Europe still operates the world’s largest emissions trading system, but Asian economies including South Korea, China, and New Zealand have developed their own regional programs. For U.S. investors hoping to gain exposure to carbon markets outside the EU, access to these systems has often been limited by regulatory and membership barriers.
South Korea launched its cap-and-trade program in 2015, covering roughly 700 companies that collectively account for about 70% of the nation’s emissions. Firms that emit more than their allotted carbon limit must buy credits from those that emit less — similar in principle to California’s cap-and-trade system, but with far tighter participation rules.
Opening the market to brokerages effectively modernizes the structure, making it more comparable to traditional securities trading. Companies with emissions obligations can now trade through intermediaries, even though they still cannot join the exchange directly.
South Korea’s market remains smaller than Europe’s, but it is one of the most active platforms in Asia and has drawn increasing attention from institutional investors seeking diversification in climate assets. Allowing broker access is expected to boost liquidity and improve price transparency — two features global investors have been waiting for.
For American financial institutions exploring international carbon markets, South Korea’s updated framework could offer a more straightforward entry point into Asia’s fast-evolving climate economy.
