KLRI : KOREA LEGISLATION RESEARCH INSTITUTE

Ⅰ. Backgrounds and Purposes

▶The importance of carbon sinks as a natural and ecosystem-based GHG mitigation option

○Since the 2015 Paris Agreement, carbon neutrality has emerged as an important issue for national competitiveness and quality of life, emphasizing the role of forests and oceans as nature-based carbon sinks.

○Korea's 2050 Carbon Neutrality Strategy, the first National Carbon Neutrality and Green Growth Framework Plan, and the Basic Act on Carbon Neutrality and Green Growth for Climate Crisis Response outline a vision to strengthen carbon sinks and play a pivotal role in combating climate change.

▶The need to expand carbon sinks in marine ecosystems

○The importance of marine ecosystems as a new carbon sink is emerging as the existing forest-centred carbon sinks policy is showing its limitations due to declining forest stocks and limited area.

○Given the limitations of terrestrial carbon sinks, the expansion of marine carbon sinks is particularly important for Korea, a country surrounded by the sea on three sides.

▶Lack of domestic legislation to systematically harness marine carbon sinks

○Marine carbon sinks hold significant potential for contributing to national GHG reduction targets. However, a weak legal and political framework limits their effective scaling and integration into carbon markets.

○The existing legal framework is heavily centered on forest carbon sinks, making it essential to broaden its scope to incorporate marine carbon sinks and enable meaningful contributions to net-zero from the marine sector.

▶This study examines the laws and policies of major countries on marine carbon sinks, extracts key insights, and suggests legal reforms to support their expansion and systematic utilization, informed by a review of domestic legislation.

○To accomplish this, the report first delves into the concept and importance of carbon sinks, particularly marine carbon sinks, and then emphasizes the need for their expansion.

○The report then analyses the laws and policies of major countries and reviews domestic legislation to assess the potential and limitations of marine carbon sinks expansion, proposing legal improvements based on these findings.

 

Ⅱ. Major Content

▶Concepts and policy discussions on marine carbon sinks

○Concept of marine carbon sinks

-Carbon neutrality involves reducing, absorbing, and removing greenhouse gas emissions to achieve a net ‘zero’ balance. Marine carbon sinks, including mangroves, salt marshes, and seagrass, serve as natural systems for sequestering and storing carbon in marine sediments.

-Marine carbon sinks are integral to Korea's 2050 carbon neutrality strategy and are internationally recognised as a carbon reduction tool. They can compensate for the limitations of terrestrial ecosystems due to their higher carbon absorption capacity compared to forests.

-Marine carbon sinks are influenced by variability and uncertainty in their carbon absorption capacity due to climate change and natural disasters. They complement terrestrial carbon sinks and work together as a means of reducing carbon emissions.

○Policy discussions on marine carbon sinks

-In 2020, the government announced the ‘2050 Carbon Neutrality Promotion Strategy’ and the ‘2050 Carbon Neutrality Scenario’ as part of its commitment to achieving carbon neutrality by 2050. The scenario aimed to absorb 21% of carbon through carbon sinks and highlighted the importance of expanding marine carbon sinks.

-The Ministry of Oceans and Fisheries established the ‘2050 Carbon Neutrality Roadmap for Oceans and Fisheries’, outlining a goal to absorb 136.2 million tonnes of carbon by 2050 through the restoration of tidal flats and marine forests.

-In 2023, the government introduced the ‘National Carbon Neutral Green Growth Strategy’, prioritizing the expansion of marine carbon sinks and the discovery of new blue carbon. To achieve these goals, the Ministry of Oceans and Fisheries is promoting the ‘Blue Carbon Promotion Strategy’ to enhance marine carbon absorption capacity and encouraging private and international cooperation to activate blue carbon projects.

▶Overseas legislation and policy trends on marine carbon sinks

○Legislative and policy trends in the United States, Australia, and Japan on marine carbon sinks

-In the U.S., bills like the Blue Carbon for Our Stars Act and the Blue Carbon Protection Act, aimed at carbon sequestration and climate change mitigation through blue carbon, have been introduced. Additionally, state-level efforts to achieve carbon neutrality by restoring and protecting blue carbon ecosystems are ongoing.

-Through its Carbon Credits Act and the Blue Carbon Conservation, Restoration, and Accounting Programme, Australia is actively restoring blue carbon ecosystems and advancing carbon sequestration efforts. Furthermore, it is expanding international collaboration and funding to support climate change mitigation and biodiversity conservation.

-Japan manages marine carbon sinks indirectly under the Global Warming Solutions Promotion Act, which addresses carbon sinks. In 2023, it became the first country in the world to include blue carbon in its greenhouse gas inventory. Additionally, Japan promotes blue carbon projects through the J-Blue Credit scheme, which certifies and facilitates trading of marine ecosystem restoration activities.

○Implications of overseas legal and policy trends

-Countries are leveraging the carbon sequestration capacity of marine ecosystems to address climate change by conducting scientific evaluations and providing legal and institutional support. Korea should incorporate this approach into its climate change strategy and establish a comprehensive legal framework.

-Countries with blue carbon policies encourage ecosystem restoration by offering economic incentives such as carbon credit schemes. To ensure the stable implementation of these projects, the US and Australia provide additional support through funding and subsidies.

-Blue carbon policies in many countries focus on marine ecosystem restoration projects, adopting a careful approach to increasing carbon uptake and reducing environmental risks.

-To accurately evaluate marine carbon sequestration capacity, it is essential to conduct sustained research and implement systematic monitoring supported by advanced technologies.

-Effective blue carbon management relies on international collaboration and local community engagement. Korea should reflect these global and local partnerships in its policy strategies to ensure sustainability.

▶Legal Challenges for the Expansion and Utilization of Marine Carbon Sinks

○Analysis of Legislation Related to Marine Carbon Sinks

-Marine carbon sinks, as a tool to address the climate crisis, are intrinsically linked to the ocean. Accordingly, relevant laws can be examined from two perspectives: their role in mitigating the climate crisis and their relationship with marine environments.

-The Framework Act on Carbon Neutrality provides a comprehensive legal basis for addressing the climate crisis. Article 33 specifically establishes the foundation for creating and expanding carbon sinks in both terrestrial and marine ecosystems by outlining government policies related to their development and expansion.

-The Carbon Sinks Act, enacted to implement Article 33 of the Framework Act on Carbon Neutrality, focuses exclusively on maintaining and enhancing carbon sinks in forests, while neglecting marine carbon sinks.

-The Fisheries Resource Management Act, the Marine Environment Conservation Act, and the Marine Ecosystem Act do not directly regulate marine carbon sinks. However, their purposes indirectly align with maintaining marine carbon sinks and enhancing their functions.

-Similarly, the Wetland Conservation Act and the Tidal Flat Act indirectly support carbon sink functions in tidal flats and wetlands by preserving their environmental value. However, neither law includes specific provisions recognizing tidal flats and wetlands as carbon sinks.

-While there are no direct legal standards for marine carbon sinks at the national level, some local governments have established ordinances to address this issue.

-Coastal carbon sink ordinances have been enacted and implemented by Jeollanam-do, Jeollabuk-do, Chungcheongnam-do, Wando-gun, Sinan-gun, Seosan-si, and Yeosu-si. These ordinances define the scope of coastal carbon sinks, lay the groundwork for management through basic plans, and facilitate their expansion through restoration or new projects.

○Limitations of Current Legislation and the Need for Legalization of Marine Carbon Sinks

-While Article 33 of the Act on Carbon Neutrality serves as a foundation for government policies on marine carbon sinks, it lacks independent and specific legal provisions. This gap may restrict efforts to create and expand marine carbon sinks as a strategy to combat the climate crisis.

-The Marine Fisheries Act may indirectly support the protection and management of marine carbon sinks as an external effect. However, this contribution is incidental and not based on a focused regulatory effort.

-The Coastal Carbon Sinks Ordinance is the first regulation to directly address marine carbon sinks, marking a key milestone. It introduces measures to expand marine carbon sinks by leveraging private sector participation and emission offset mechanisms. Nonetheless, its normative limitations as an ordinance may restrict its ability to regulate marine carbon sinks comprehensively.

-The long-term institutionalization of marine carbon sinks calls for a national framework to manage and utilize them effectively. To achieve this, it is crucial to address existing legal gaps by establishing a comprehensive legal framework.

○Proposals for Legislation to Expand and Utilize Marine Carbon Sinks

-The need for a dedicated law focusing on marine carbon sinks is evident. Accordingly, the enactment of the ‘Act on the Maintenance and Promotion of Marine Carbon Sinks’ is proposed.

-To enact the ‘Act on the Maintenance and Promotion of Marine Carbon Sinks’, redefining ‘carbon sinks’ in the current Carbon Sinks Act is essential. Furthermore, the title of the existing Act should be revised to either the 'Act on the Maintenance and Promotion of Forest Carbon Sinks' or the 'Act on the Maintenance and Promotion of Carbon Sinks in Forests.'

-For the marine carbon sink policy to be implemented effectively and systematically, roles must be clearly divided between the state and regional governments. Additionally, cooperative governance is needed to address potential value conflicts.

-The maintenance and enhancement of marine carbon sinks should be supported by systems tailored to their specific purposes. For example, a 'Protection Zone' could be established for their maintenance, while dedicated projects could focus on their enhancement.

-To promote marine carbon sinks, policies should be developed to encourage private sector participation, including companies, organizations, and individuals. Furthermore, appropriate measures must be in place to ensure that carbon sinks created by private sector projects can be utilized for profit generation.

-Strengthening links with other systems is necessary. For instance, establishing regulations to integrate marine information use under the Marine Investigation Information Act could be considered.

 

Ⅲ. Expected Effects

▶As awareness of marine carbon sink capacity grows, a legal framework is expected to emerge, facilitating collaboration between the state and private sector to create and expand marine carbon sinks. Integrating these functions into the carbon market offers a structured pathway to achieving carbon neutrality.