On 15 December, China Beijing Environment Exchange (CBEEX) and Korea Exchange (KRX) signed a Memorandum of Understanding (MOU) to cooperate on emissions trading development.

The deal was signed during a high level meeting between senior KRX and CBEEX officials in Beijing. According to CBEEX, the two exchanges plan to cooperate in research on: market management and system development, membership development, capacity building, product development, and future linking (press release – Chinese). The overall objective is to promote carbon market development in both China and South Korea and to enhance climate action and environment protection.  

The Beijing-Korea MOU follows the Sino-Korea Climate Change Cooperation Agreement, which was signed in January 2015 (press release – Chinese). According to CBEEX, the MOU between the two exchanges and the envisaged research cooperation on carbon markets represent a step towards further national bilateral cooperation on climate change. 

CBEEX was founded on Aug 5th, 2008 under the approval of Beijing municipal government as a market platform for various environmental equities. It has served as trading platform for Beijing’s ETS pilot as well as for CCER (Chinese Certified Emission Reductions) offsets projects. KRX was created through the integration of Korea Stock Exchange, Korea Futures Exchange and KOSDAQ Stock Market in 2005. It is the sole securities exchange operator in the Republic of South Korea and serves as the trading platform for the Korea ETS.