Assessment of Opportunities for Implementing a Methane Import Standard in South Korea

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Jinsun Roh

Head

Sanghyun Ma

Researcher

Carbon Limits

Guest author

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In 2021, South Korea joined the Global Methane Pledge, committing to reduce national methane emissions by 30% by 2030. In line with this goal, the government released a methane reduction roadmap in 2023, setting sector-specific targets: 49% for waste, 34.2% for agriculture and livestock, and 22.7% for energy.

However, with 98% of South Korea’s oil and gas supply imported, the majority of methane emissions linked to national fossil fuel consumption occur outside its borders—during upstream and midstream stages in exporting countries.

This report, prepared by Carbon Limits for Solutions for Our Climate (SFOC), explores how South Korea can reduce these external emissions through the introduction of a methane import standard—a policy tool that would require or incentivize emissions reductions from fossil fuel exporters. Drawing on methodologies used in the EU Methane Regulation, the report evaluates four regulatory approaches: information-based, prescriptive, performance-based, and market-based.

Through a detailed analysis of the methane intensity of South Korea’s major oil and gas suppliers, the report offers data-driven insights on abatement potential, costs, and implementation options. While it does not endorse a single approach, the study aims to inform policymaking aligned with Korea’s climate commitments and global leadership as a major energy importer.

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[SFOC_Carbon Limits] Assessment of Opportunities for Implementing Methane Import Standard in South Korea.pdf

Executive summary

South Korea’s methane emissions footprint extends far beyond its borders. In 2023, the country imported 98% of its oil and gas, with methane emissions from these imports estimated at over 30 million tonnes of CO₂ equivalent— approximately 17 times higher than domestic emissions from the oil and gas sector, which stood at just 1.7 Mt CO₂ e. (Figure 1)

Despite their scale, these import-related emissions remain unregulated. To address this gap, this report examines the feasibility of introducing a methane import standard in South Korea—assessing its potential to reduce emissions and strengthen compliance with the Global Methane Pledge.

[Figure 1] Estimated methane emissions from oil and gas within South Korea and from imported products

Four regulatory pathways are analyzed:

Information-based standard: Enhances transparency and enables future regulation, but does not directly reduce emissions.

Prescriptive standard: Mandates specific technologies (e.g. LDAR, flaring bans), offering moderate reductions but less flexibility and higher compliance costs.

Performance standard: Sets methane intensity thresholds and is highly cost-effective if supported by robust MRV systems.

Market-based standard: Applies a methane fee or tax to incentivize reductions across the supply chain, including higher-cost measures.

[Figure 2] Current methane intensity of oil exported to South Korea and estimated methane intensity based on the application of different standards

[Figure 3] Current methane intensity of gas exported to South Korea and estimated methane intensity based on the application of different standards

Key findings

The current methane intensity of imported oil (27.6 kg CO₂ e/BOE) and gas (22.3 kg CO₂ e/BOE) significantly exceeds best-practice benchmarks (5.9 kg CO₂ e/BOE).
Without addressing upstream emissions, South Korea risks underestimating its methane footprint and missing key climate targets.
Figures 2 and 3 show that while all standard types lead to emissions reductions, performance- and market-based approaches are most effective, delivering deeper cuts by encouraging widespread adoption of abatement measures.