The emission allowance trading system is a system in which companies, local governments, and institutions register voluntary greenhouse gas reduction projects in the offset system and utilize certified external offset certification results (KOC) that is the core policy of the system. The carbon credits center manages all of the offsetting business such as business development, methodology development, business registration, business management, and performance trading of domestic and foreign offsetting systems such as CDM and emission trading system.
In addition, the KRIC Offset Business Management Program allows one to efficiently manage one’s business during the entire business lifecycle. In particular, we have the best expertise in offsetting business areas who have much of experiences in building institutional infrastructure, the development of the largest methodology in Korea, and the verification examination of all domestic offsetting schemes. We have developed greenhouse gas reduction projects based on the expertise of greenhouse gas emissions trading system (forest carbon), CDM, and VCS, selection and registration of optimal offset system considering customer's economic efficiency. We strive to do the best research and business in an area of offset project including investment matching.
The carbon credits is an important core asset associated with the implementation of the greenhouse gas emissions trading regime and the carbon market, and are financial assets that can generate profits for SMEs. We are carrying out carbon asset management projects such as managing carbon credits and providing companies with the best carbon asset based on our experience in the largest network and reduction project in Korea.
Based on our expertise in the carbon market, we are establishing an optimal carbon asset management strategy, such as forecasting carbon prices, developing a carbon asset management report through carbon asset management, and developing a manual for carbon asset management. We also analyze the investment projects of carbon funds and other funds, and issue and manage emission certificates. In addition, we can utilize the emission credits owned by the Korea Research Institute on Climate Change to utilize them to achieve our corporate goals. We will continue to strengthen our national emissions trading system and carbon market expertise to provide optimal strategies for corporate carbon assets.
In order to mitigate climate change, it is necessary to develop new technologies to reduce GHG emissions (increase of carbon sink), to create new industries, and to quantify greenhouse gas (MRV) in accordance with international standards, in all areas including industry, buildings, transportation and forests. We are conducting various R & D activities to develop policies and strategies for responding to climate change at corporate and national level, such as research on new industries such as carbon resource reduction related to greenhouse gas reduction and greenhouse gas quantification research including the method of calculating emission amount and methodology. In addition, we have been participating in government policies and schemes for offsetting greenhouse gas emissions trading for many years. We are also carrying out various researches such as development of methodology to activate the system and development of reduction-offset linkage model.
We have a lot of experts in the field of greenhouse gas as a research institute specialized in climate change. We have undertaken various projects such as government system development, methodology development, MRV technology development, forest carbon sink estimation, And we will study ways to reduce greenhouse gas emissions by countries and corporations and to respond effectively to climate change.
In addition to the forestry sector, North Korea is estimated to have a very high potential for greenhouse gas reduction in various areas such as renewable energy and energy efficiency. In addition, based on its experience and expertise in promoting a number of small-scale CDM projects, North Korea is making efforts to expand CDM projects such as REDD +. South Korea has announced its plan to achieve 2030 national GHG reduction targets through international cooperation. Cooperation with North Korea, which has a high GHG reduction potential, is very important.
KRIC has been pursuing research and projects for mutual cooperation with North Korea for many years, such as the CDM project, the analysis of GHG mitigation potential in the energy and forest sector, and the establishment of partnerships with international stakeholders. We will conduct research and development on sustainable greenhouse gas reduction cooperation projects based on the core information and stakeholder network accumulated through research and projects related to North Korea.
In the New Climate regime, starting in 2021, both developed and developing countries should work together to reduce greenhouse gas emissions. In addition, ITMO will facilitate international GHG emission reductions, and the carbon credit obtained by greenhouse gas reduction projects conducted by domestic companies from overseas from 2018 is being traded domestically. In this New Climate Regime efforts in conjunction with the international community are essential.
Korea Research Institute on Climate Change is a UNFCCC registrated organization and the Korea's first International Carbon Footprint Association (IETA) partner. Based on this international network, we will conduct research on greenhouse gas and climate change in cooperation with international organizations such as IETA, ICAP and World Bank. In addition, we will actively participate in the development of a new carbon market mechanism in Korea, such as technology transfer and reduction projects for developing countries and bilateral agreements for bilateral cooperation in the new era system. In addition, we will carry out researches to promote overseas business of domestic companies in the new era system, and plan to secure efficient emission rights. The Carbon Expert Group is committed to establishing an ongoing network, holding international events, and participating in international research activities in order to become an international climate change expert.
Carbon capture and storage (CCS) and carbon capture and reuse (CCUS) are key technologies for reducing greenhouse gas emissions and achieving national greenhouse gas reduction targets. All are competing for the preemption of CCUS technology all over the world including Korea. Korea is carrying out the national CCS roadmap and the national carbon strategy project to develop the world's best CCS technology. In order to recognize CCS and CCUS technologies' greenhouse gas reduction performance, a methodology for estimating greenhouse gas reductions must be developed and approved internally and externally.
The Carbon Expert Group has carried out various researches in related fields such as feasibility study on the carbonization cluster formation and the basis for the greenhouse gas reduction project of CCUS technology in Vietnam. In addition, we are currently conducting research on the CDM methodology of carbon mining projects in the National Strategic Project on Carbonization.
Based on many years of experience and expertise in related fields, the Center for Carbon Emission Reduction (CERC) conducts studies such as the development of MRV and the methodology for estimating greenhouse gas reductions.