• What is Korea’s Target Management Scheme?
  • How are the Controlled Entities designated?
  • What role does each government department play for TMS?
  • How is TMS operated?
  • What IT system is used for TMS
  • Must the facility-specific Emissions Reports be always made public?
  • How are the verifiers designated and managed?
  • What is the detailed workflow of TMS?

1. What is Korea’s Target Management Scheme?

Designed for achieving GHG reduction goals and promoting mitigation capabilities, Target Management Scheme is a system in which large-scale facilities emitting a substantial quantity of greenhouse gases and consuming a high level of energy are imposed GHG reduction and energy conservation targets

Principles of TMS

Principles of TMS

  • Advancement of Regulations
    • Consider conditions for domestic industries
    • Consider international trends
    • Prevent double regulation(GHG-energy integrated management)
  • Become one of the world’s green leaders
    • Nurture Green Industry and improve national economy
    • Achieve the national mid-term GHG mitigation target(30% reduction below 2020 BAU levels)
Major Consideration for Implementation of TMS

Operate the efficient system to achieve the business competitiveness as well as GHG reduction

  • Establishment of estimation and management system at first year
    • - Provide exemption from mandatory target-setting
    • - Allow preparation periods
  • Avoidance of double regulation
    • - Prevent double regulation through GHG-energy integated management
  • How to set targets
    • - Set targets in total amounts in consideration of BAU
  • Set targets in total amounts in consideration of BAU
    • - Provide incentives to Green Management
    • - Count voluntary mitigation efforts towards mitigation targets under ETS to be implemented

2. How are the Controlled Entities designated?

Companies and facilities with high levels of GHG emissions and energy consumption are designated as Controlled Entities and subject to management under the Framework Act on Low Carbon Green Growth (enforcement on April 14, 2010) and Guidelines for the Operation of Target Management Scheme (amended on November 5, 2011 by Notification No. 2012-211 of Ministry of Environment).

Criteria for Designation of Controlled Entities
2010 - 2011
  • A company with 125,000 tCO2eq of GHG emissions and 500 TJ (Terajoule) of energy consumption
  • A facility with 25,000 tCO2eq of GHG emissions and 100 TJ of energy consumption
2012 - 2013
  • A company with 87,000 tCO2eq of GHG emissions and 350 TJ of energy consumption
  • A facility with 20,000 tCO2eq of GHG emissions and 90 TJ of energy consumption
Beginning 2014
  • A company with 50,000 tCO2eq of GHG emissions and 200 TJ of energy consumption
  • A facility with 15,000 t2eq of GHG emissions and 80 TJ of energy consumption
온실가스, 에너지 소비 관리업체 지정기준 (령 제29조 제1항)
  2010~2011 2012~2013 Beginning 2014
Company Facility Company Facility Company Facility
GHG Emission
(CO2-eq ton)
125,000 or higher 25,000 or higher 87,500 or higher 20,000 or higher 50,000 or higher 15,000 or higher
Energy
Consumption
(Tera Joule)
500 or higher 100 or higher 350 or higher 90 or higher 200 or higher 80 or higher

3. What role does each government department play for TMS?

Ministry of Environment
Ministry of Environment supervises the operation of TMS, establishes related guidelines, checks double designation or omission of entities and ensures the adequacy of regulations. It also designates, manages and provides training to verifying institutes and personnel.
Controlling Department for Each Sector
Controlling Departments designate and manage Controlled Entities, establish GHG reduction targets, evaluate objections against designations and review Emissions Reports and Implementation Reports.
Greenhouse Gas Inventory & Research Center (GIR)
GIR establishes and manages the National GHG Management System, operates an evaluation committee, support national and sectoral GHG reduction target setting, verify and manage GHG related statistics and cooperate with international organizations and developing countries for global GHG mitigation.
Role of Each Party under TMS

Designating Controlled Entities,Target-Setting,Evaluating Implementation Reports

4. How is TMS operated?

Management of Mitigation Implementation & GHG Information

1st Stage : Designate Controlled Entities

When companies submit reports on previous emissions to the Controlling Departments, Controlling Departments for each sector
designate Controlled Entities and establish their GHG emissions targets after Controlling Departments and GIR review the reports for double counting or omission.

  1. Pre-select Controlled Entities (Mar)
  2. Screen for double selection and omission, and ensure accuracy
  3. Designate and announce Controlled Entities (Jun)
2nd Stage : Submit Implementation Plan for Mitigation Target

Controlled Entities submit Implementation Plans for achieving mitigation targets.

Establishment and Submission of Implementation Plan

Establishment and Submission of Implementation Plan

  1. Controlling Departments Pre-select Controlled Entities (Mar) -

    Form a consultative body for target setting (government + nongovernment experts),

    Announce established targets (Sep)

  2. Controlled Entities -

    Submit Implementation Plans for the next year (Dec)

  3. Controlling Departments Pre-select Controlled Entities (Mar) -

    Pre-select Controlled Entities (Mar)

  4. GIR

Requirements for Implementation Plan

  • Yearly and five-year targets and implementation plan
  • GHG emissions estimates, mitigation plan, energy consumption estimates and energy conservation plan
  • Methodologies for GHG emissions and energy consumption estimation (including calculation and measurement methods)
  • Achievements in GHG emissions mitigation, absorption and sequestration
3rd Stage: Submit Emissions & Implementation Report

Controlled Entities submit an Emissions Report including the year’s emissions and energy consumption estimates with an Implementation Report.

Report and MRV of Implementation

Adopt remedial measures if necessary

  1. Controlled Entities - Submit Implementation Reports (next year in March)
  2. Controlling Departments -Ensure the accuracy of reported data and MRV methods
  3. Controlled Entities - Reflect improvements when establishing Implementation Plans
4th Stage: Evaluate Emissions and Implementation Reports and Adopt Remedial Measures
  • Controlled Entities are required to have Emissions and Implementation Reports confirmed by Verifying Institutes, reviewed by Controlling Departments and submitted to GIR.
    ※ Verifying Institutes: Third party institutes that verify Emissions Reports produced by Controlled Entities
  • If Controlled Entities are not able to meet targets or their Implementation Reports do not reach the MRV standards,
    they may be subject to remedial measures.

5. What IT system is used for TMS?

  • National Greenhouse Gas Management System (NGMS) has been operated to collect and manage a variety of data related to facility-specific GHG statistics.

    NGMS : National Greenhouse gas Management System

  • This system allows the supervising and Controlling Departments to have access to and manage GHG emissions and energy consumption data reported by Controlled Entities.
National GHG Management System Structure

총괄 관장 기관

  • Prime Minister Ministry of Public Administration and Security
  • Ministry of Agriculture, Forestry and Rural Affairs
  • Ministry of Trade,Industry and Energy
  • Ministry of Land, Infrastructure and Transport
  • Ministry of Environment

NGMS

  • Select Controlled Entities
    • Register entities
    • Apply the objection
    • Select target entities
    • Notify target entities
  • Manage the reduction target
    • Allocate and manage the reduction target
    • Manage the reduction target
    • and its record Manage the reduction activities
  • Manage the performance
    • Manage the performance plan
    • Manage the performance record
    • Mange the improvement measures
    • Verify the performance
    • Approve the performance
    • Mange the register
  • Manage DNA
    • Register authorities
    • Designate the authority
    • Manage data
    • Manage records
  • Manage data related to the performance
    • Manage facilities
    • Register emission
    • Register the consumption
    • Check the course
  • Manage the statement
    • Create the report
    • Approve the report
  • Manage System Users
    • Manage electronic identification
    • Register certifications
  • Supervise National GHG Inventory
    • Manage submission of sectoral reports
    • Manage emissions factors
  • Manage Emissions & Energy Statistics
    • Industry
    • Residential
    • Transport
    • Public Institutions
    • Local Governments
    • Controlling Departments
  • Manage our homepage
    • About GIR
    • Work Areas
    • Int’l Cooperation
    • Contact GIR
  • Database
    • Controlled Entities
    • System Users
    • Activity Data
    • Policies & Guidelines
    • Statistics
    • Knowledge
  • Reporter
    • Administrative agencies
    • Public institutions
    • Controlled Entities
  • Related Government Bodies
    • Green Growth Committee
    • Local Governments
    • Statistics Korea
    • Financial Services Commission
    • Korea Exchange

6. Must the facility-specific Emissions Reports be always made public?

In principle, Emissions Reports are open to the public, but if a company applies for confidentiality for the reasons of business secret or else and the Evaluation Committee approves the application, the company’s Report may be closed to the public.

Opening Emissions Reports to the Public

  1. Controlled Entities - Prepare the statement for GHG and energy consumption Submit its results (Mar.)
  2. Responsible Organization - Submit to Center after reviewing it
  3. Controlled Entities - Include them if the performance plan is establishedPrinciples of Disclosure
  4. Controlled Entities - Explanatory statement
  5. GIR (Judging Committee)Maximum protection of the confidential information for businessJudge the disclosure or non-disclosure status

7. How are the verifiers designated and managed?

Verifying institutes and personnel mean third party verifiers with specific expertise who are qualified to verify Emissions Reports and Implementation Reports.

Process to Designate Verifying Institute

Review applications -> On-site investigation -> Review by Designation Consulting Group -> Request designation -> Collect opinions from Controlling Departments -> Designate Verifying Institute
※ National Institute of Environmental Research conducts the designation, registration and management of the verifiers.

Official Verifier
  • A person who meets qualifications including a bachelor’s degree or the equivalent and three years or more of work experience may become a candidate for an official verifier.
  • A candidate who has conducted five or more times of verification in three years and completed the required training in seven specific sectors may become an official verifier.(More information on qualifications and designation of verifiers are detailed in the Guidelines for the Operation of Target Management Scheme.)

8. What is the detailed workflow of TMS?

  • The annual work cycle consists of the designation of Controlled Entities, target setting, verification of Implementation Plans and that of Implementation Reports.
TMS Work Flow for Controlled Entities Designated in 2010

TMS Work Flow for Controlled Entities Designated in 2010

  • 2013년
    • 2013
      • March : Pre-select controlled entities (relevant ministry and agency → Ministry of Environment)
    • 2012 (1st year of reduction )
      • December : Submit implementation plan (by 5 years/yearly)
      • September : Set reduction target (for 2013)
      • June : Designate controlled entities (third) (Ministry of Environment → relevant ministry and agency)
      • March : Pre-select controlled entities (relevant ministry and agency → Ministry of Environment)
    • 2011 (Obligatory reporting of emission )
      • December : Submit implementation plan (by 5 years/yearly)
      • September : Set reduction target (for 2012)
      • June : Designate controlled entities (second) (Ministry of Environment → relevant ministry and agency)
      • March : Pre-select controlled entities (relevant ministry and agency → Ministry of Environment)
    • 2010
      • September : Designate controlled entities (first)
      • July : Designate controlled entities and development of MRV guideline
    TMS Work Flow for Controlled Entities Designated in 2011

    • 2014
      • March : Submit statements and performance records (for 2013)
    • 2013
      • December : Submit implementation plan (for 2014)
      • September : Set reduction target (for 2014)
      • March : Submit statements (for 2012)
    • 2012
      • December : Submit implementation plan (for 2013)
      • September : Set reduction target (for 2013)
      • June : Submit statements (for 2008~2011)
    • 2011
      • June : Designate controlled entities