South Korea’s Ministry of Planning and Budget on Monday announced plans to legislate a voluntary carbon market and establish a dedicated exchange within the Korea Exchange by the end of the year, as part of a broader push to expand emissions reduction beyond the existing cap-and-trade system. The ministry also launched a public-private “Voluntary Carbon Market Alliance” with participation from major firms including Samsung Electronics, SK Hynix and LG Electronics to help build demand for carbon credits and link buyers and project developers.

The proposed “Voluntary Carbon Market Act” would create a framework for issuing, trading and retiring carbon credits,