The dilemma over waste and emissions

After the price of Korea’s CER credits under the ETS has fallen sharply, the ETS function of encouraging emission reductions is not working properly.

CHO WON-KYEONGThe author is a professor at UNIST and the head of the Global Industry-University Cooperation Center. Industrial waste can make money. It accounts for 90 percent of waste in Korea. Large enterprises like SK and Taeyoung E&C and private equity funds entered the industrial waste business. Are the promoted eco-friendliness and resource circulation really true? I wondered whether they are “greenwashing” as eco-friendly businesses.

As companies are eager to jump into the waste business, local governments are reluctant for possible controversy over favoritism. A policy was announced that an industrial complex that received a permit for existing manufacturing industries is not allowed to convert them into an industrial waste landfill site. When more waste is generated, more is buried and incinerated, making private companies rich. Will it be possible to reduce the amount of industrial waste this way?

From January 2026, the Seoul metropolitan area can no longer place household waste stored in standard plastic garbage bags into landfills and will have to incinerate them. This will be implemented in non-capital regions from 2030. It is local governments’ responsibility to dispose of household waste. There are four incinerators in Seoul, one each in the Gangnam, Mapo, Nowon and Yangcheon Districts. What if the volume of waste brought into these incinerators goes beyond an incinerator’s capacity?

Currently, excess waste goes to the landfill in Incheon, but if it can’t be placed into a landfill, another incinerator facility needs to be built in Seoul. District offices without incinerators would not want to get involved. If agreements cannot be reached, should waste from each district be handled by themselves?

The European Union Emissions Trading System (ETS) has played a major role in reducing greenhouse gases. The EU’s Carbon Border Adjustment Mechanism, which imposes tariffs in the form of a carbon emission levy, will be implemented from January 2026. If Korea’s certified emission reduction (CER) credits are recognized by the EU, the burden on Korean companies exporting to Europe will be eased.

After the price of Korea’s CER credits under the ETS has fallen sharply, the ETS function of encouraging emission reductions is not working properly. Due to the wide price difference between Korea and Europe, it is questionable under what conditions the EU will recognize Korea’s CER credits. Not much time remains until January 2026. It’s certainly a frustrating development, but the central and local governments in Korea must come forward calmly and quickly.