NH Investment & Securities Selected as Pilot Operator for Carbon Emission Trading Brokerage System Implementation

NH Investment & Securities announced on the 25th that it has been solely selected as the pilot operator for the carbon emission trading brokerage system introduced by the Ministry of Environment.

Following the selection as the pilot operator, NH Investment & Securities plans to build the carbon emission trading brokerage system this year and officially start brokerage trading for market participants, including companies subject to emission allowances, from the first half of next year. The carbon emission trading brokerage system is a scheme that incorporates the current system, where companies subject to emission allowances directly participate in the Korea Exchange system for trading, into securities firms' Home Trading Systems (HTS). The Ministry of Environment announced a call for participants for this system implementation project at the end of February this year, and NH Investment & Securities was finally selected.

In September last year, the government promoted measures to revitalize the carbon emission trading market by expanding market participants and diversifying products. The amendment to the Emissions Trading Act passed the National Assembly in January this year, establishing the legal foundation to implement the brokerage trading system from the first half of next year. With the introduction of brokerage trading, trading carbon emission rights through securities firms becomes possible, providing companies subject to allowances with convenience in trading and easier access to market information, among various other benefits. Furthermore, when carbon emission-linked financial investment products are launched in the future, it is expected that market participant expansion and market revitalization will be actively promoted alongside the brokerage trading system.

Park Geon-hoo, Head of Client Solutions Division at NH Investment & Securities, stated, "The carbon emission rights system has continuously played a positive role in encouraging companies to reduce carbon emissions and decreasing national emissions. The emission rights market, which had institutional restrictions on trading participation, is expected to open up and be reorganized into a mature financial market starting with this brokerage trading system. NH Investment & Securities will contribute to making this pilot project a model case for the emission rights system through its successful completion."