South Korean lawmakers have agreed on a bipartisan bill that sets a greenhouse gas reduction target of 69% to 80% below peak levels by 2040, with a linear lower bound to protect the country's manufacturing-heavy economy. The bill also establishes five-year milestones toward net zero by 2050 and aims to keep industry competitive while cutting emissions. Key details include provisions for the semiconductor industry and AI data centers, which are major energy users in South Korea. The target range gives industry some flexibility but still requires deep cuts. The bill also references the national emissions trading system (K-ETS) and voluntary carbon markets as tools to reach the goals. This is a significant policy signal for carbon markets and industrial decarbonization in Asia. The bipartisan nature of the bill suggests it has staying power, but the wide target range leaves room for debate on how aggressive the actual cuts will be.
