Overview
We wanted to share a 2026 market update on recent legislative developments in Korea’s renewable energy sector that are relevant to the International Renewable Energy Certificates (IREC) business.
In May 2026, Korea’s National Assembly advanced legislation to abolish the Renewable Portfolio Standard (RPS), signalling a significant shift in how the country supports renewable energy development. While this move is not directly targeted at IREC policy, it reflects the broader direction of Korea’s energy transition and is relevant context for the work we are pursuing together. We set out the key details below.
Abolition of the Renewable Portfolio Standard (RPS)
The most significant development is a legislative move to dismantle Korea’s Renewable Portfolio Standard, which has been the primary mechanism for renewable energy deployment since 2012. Korea’s Climate, Energy, Environment and Labor Committee approved a substitute bill on 19 May that would replace the obligation-based K-REC trading system with a centrally procured, long-term contract model. Under the proposed framework, the government would pre-determine auction volumes, run competitive tenders, and award long-term contracts to selected developers.
Transition Arrangements for Existing K-REC Operators
The proposed legislation includes provisions to manage the transition for operators currently active under the RPS framework. Those operating before the law takes effect would be permitted to issue and trade K-RECs for a remaining period of up to 20 years. The K-REC spot market would also be phased out gradually over a three-year grace period, with a transition to a contract-based market.
What this means for IREC in Korea
While these are encouraging signs of policy momentum, we note that the legislative process is still ongoing and no confirmed timeline has been provided by Korean policymakers in respect of IRECs. We are monitoring these developments closely as the IREC legislation advances. Should you have any interest for I-RECs or renewables in general in Korea, please reach out to Meilin Wu m.wu@northmoregordon.com.
