Schematic diagram of hydrogen reforming and carbon capture process

Regulation trend (Onshore Market)

- Overhaul of the Greenhouse Gas Emission Trading Scheme, the key to the 2050 Zero-Carbon Policy

The Greenhouse Gas Emission Trading Scheme is a program in which the government allocates allowances each year to facilities releasing greenhouse gas emissions,
evaluates actual GHG emissions from those emitters, and permits the emitters to trade their excess allowances with those with a shortage of allowances.

• 

  Concept of Emissions Trading Scheme

• 

  Phase 3 of the Plan (2021-25) Carbon Emission Allowances

- Alternatives to land regulation

• 01

  Trading of carbon credits

• 02

  Transitioning to eco-friendly fuel-powered plants

• 03

  Installing CCUS Carbon Capture, Utilization and Storage

- Domestic Market Size for Onshore CCUS

Companies selected for allocation that have installed CCUS do not have to buy credits for 10% of the allowances reserved for auction.
They can make profits by selling as many credits as the amount of emissions they have reduced.

684 companies selected for allocation during Phase 3 of Greenhouse Gas Emissions Trading Scheme Plan (2021-2025)

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Regulatory trends (Offshore)

- Carbon emissions regulation for offshore/onboard applications

The International Maritime Organization (IMO) brought into effect
the EEDI (Energy Efficiency Design Index) and EEXI (Energy Efficiency eXisting ship Index) as initial strategies for reducing greenhouse gas emissions from ships.

• EEDI

  Energy Efficiency
  Design Index

  • Setting targets to reduce CO2 emissions per transport work by the Nth year below the 2008 peak
  • CO₂ emissions generated by a ship when transporting 1 ton of cargo 1 nautical mile; for 13 types of ships of more than 400 tons gross tonnage, the EEDI must be calculated for each new ship
  • The EEDI applies to newly built ships since 2015, targeting a 30% reduction of greenhouse gas emissions by 2025 (with the base year of 2013)

• EEXI

  Energy Efficiency
  eXisting ship Index

  • Applies to existing ships just the same as the EEDI does; the EEDI phase 2 or phase 3 reduction requirements apply, depending on the type of the ship.
  • This marks the beginning of the short-term target to achieve the IMO’s 2030 GHG reduction target of 40%.

• EEDI Phase

  phase 0 ~ phase 5

  • phase 0
    - After 2013 , newly built ships must meet the initial EEDI reference line
  • phase 1
    - After 2015, 10% reduction below the initial EEDI reference line
  • phase 2
    - After 2020, 20% reduction below the EEDI reference line
    
    - After 2022, 30% reduction below the EEDI reference line for gas carriers, container ships,
    
    general cargo ships, and LNG carriers; 40% reduction for larger ships (added to the 73rd MEPC.)
  • phase 3
    - After 2025, 30% reduction below the EEDI reference line for newly built ships
  • phase 4(projected)
    - After 2030, 40% reduction below the EEDI reference line for newly built ships
  • phase 5(projected)
    - After 2050, 50% reduction below the EEDI reference line for newly built ships

- Alternatives to maritime regulations

• EEDI

  ESD, Energy Saving Device

  Air Lubrication System, ALS

  Wind Assisted Ship Propulsion, WASP

  Building an eco-friendly fuel ship.

  CCUS (Carbon Capture, Utilization and Storage)

• EEXI

  Shaft/Engine Power Limit

  ESD, Energy Saving Device

  Converting from fossil fuels to eco-friendly fuels (almost impossible due to engine replacement)

  CCUS (Carbon Capture, Utilization and Storage)