South Korea’s Province Strikes First-of-Its-Kind Carbon Deal with Mongolia

South Korea’s largest province, Gyeongbuk, has taken a groundbreaking step in international cooperation by partnering with Mongolia to develop carbon reduction projects under the Paris Agreement’s Article 6 framework. This marks the first time a South Korean local government has joined an international carbon credit initiative, setting a precedent for subnational environmental diplomacy.

Newly planted trees in Mongolia, wind turbines and Mörön city far in the distance. AI generated picture. 

According to national media reports, Gyeongbuk officials signed a memorandum of understanding (MoU) with Mongolian ministries to jointly develop projects that will create Internationally Transferable Mitigation Outcomes (ITMOs)—the tradeable carbon credits defined under Article 6 of the Paris Agreement. These credits enable countries to exchange verified emissions reductions to reach their environmental goals more efficiently.

‘Through this agreement, companies in Gyeongbuk will be able to carry out carbon reduction projects such as renewable energy, forest restoration, and energy efficiency (in Mongolia)’, the news report said. The emission savings from these efforts will count toward South Korea’s national environmental performance targets.

The new partnership builds on a previous MoU signed in May between the two countries, which focused on improving energy efficiency in Mongolian households by insulating traditional gers (yurts) and replacing coal-fueled stoves with cleaner alternatives. That initiative both reduced greenhouse gas emissions and improved air quality in local communities.

‘With this agreement, we plan to further expand our relationship’, said a Gyeongbuk provincial official, signalling a continued deepening of cooperation between the two partners.

Upcoming projects under the latest agreement are expected to include the conversion of a coal power plant near Mörön into a cleaner energy facility and the introduction of eco-friendly public transport options in Ulaanbaatar. Details about the projected ITMO volumes, credit sharing, and pricing have not yet been disclosed.

South Korea has pledged to use 37.5 million overseas carbon credits to help achieve its 2030 target of cutting emissions by 40% from 2018 levels—equivalent to 436.6 million tonnes of CO₂—and to stay on track toward full carbon neutrality by 2050.