How South Korea Can Improve Its Carbon Market: The Importance of Economic Incentives and International Cooperation in the Fight Against Climate Change

It is well-recognized that global warming is indeed a problem. Hence, in order to address the problem, many countries in the world have implemented market-based approaches, one such approach being the cap-and-trade program. This Comment discusses cap-and-trade programs from several different countries – the United States, the European Union, China, India, and South Korea. In particular, this Comment analyzes how each country implements their cap-and-trade program. Furthermore, this Comment focuses on three major international agreements that have been created in recognition of the importance of international collaboration to fight against global warming. These agreements are the United Nations Framework Convention on Climate Change, the Kyoto Protocol, and the Paris Agreement. Finally, in recognition of the difficulties involved with international collaboration as well as problems relating to South Korea’s compliance with the Paris Agreement, this Comment suggests two solutions. First, South Korea should link its carbon market to those of other countries. Second, South Korea should provide financial assistance to other countries so as to assist them in setting up or improving their cap-and-trade programs. It is hoped that this Comment’s suggestions will be beneficial insofar as they apply not only to South Korea, but also to other countries of similar size or that have similar problems regarding cap-and-trade programs