External projects are projects that reduce, absorb, or eliminate greenhouse gases in a manner that meets international standards in emission facilities or emission activities outside the organizational boundaries of companies subject to the allocation of the greenhouse gas emission trading system. 

Emissions issued due to the promotion of external projects are the performance of external business certification and have the effect of 1tCO2–eq of greenhouse gas emission rights. External business certification results are sold to emission trading system allocators, etc., and companies subject to allocation who purchase emission rights can convert the purchased certification results into offset emission rights and use them to fulfill reduction obligations. 

Korean Offset Credit(KOC) 

This refers to the performance of the greenhouse gas reduction submitted by external business operators reviewed by the certification committee and confirmed by the head of each department. Unit of Korean Offset Credit : KOCs(Korean Offset Credits) 

Korean Credit Unit(KCU) 

Certification performance: When converting 1 carbon dioxide equivalent ton (tCO2-eq) into an offset emission right, it is converted into 1 offset emission right (KCU) and has the same effect as 1 allocated emission right (KAU). Unit of Korean Credit Unit : KCUs(Korean Credit Units) )

• Article 29 (Offset) of the Act On The Allocation And Trading Of Greenhouse-gas Emission Permits ·
• Article 30 (Certification of Greenhouse Gas Reductions from External Projects) of the Act On The Allocation And Trading Of Greenhouse-gas Emission Permits 
• Article 47 (Offset) of the Enforcement Decree Of The Act On The Allocation And Trading Of Greenhouse Gas Emission Permits 
• Article 48 (Feasibility Evaluation, Approval and Revocation of Approval of External Projects) of the Enforcement Decree Of The Act On The Allocation And Trading Of Greenhouse Gas Emission Permits
• Article 49 (Certification of Greenhouse Gas Reductions from External Projects and Revocation of Certification) of the Enforcement Decree Of The Act On The Allocation And Trading Of Greenhouse Gas Emission Permits 
• Article 50 (Management and Operation of Offset Register) of the Enforcement Decree Of The Act On The Allocation And Trading Of Greenhouse Gas Emission Permits 
• Guidelines for Evaluation of the feasibility of external projects and Certification of Reduction Amount 

Propulsion system

The offset credit system in Emission Trading System is operated under the management agency system for each sector, and the management agencies for each sector are as follows.

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External Project operators must prepare a monitoring report in order to be recognized for the reduction performance of registered external project . In addition, they must apply for certification after verification through an external business verification agency. The procedure for certifying the reduction performance of external project is as follows.

① Creating a Monitoring Report 
Complete monitoring reports including methods to continuously collect and manage direct or indirect data related to greenhouse gas emissions or absorption during the implementation of external projects. 

② Third-party verification 
The verification body evaluates whether the greenhouse gas reduction monitoring report prepared by the external project operator meets the relevant criteria. 

③ Application for certification 
After the verification of the monitoring report by the verification authority is completed, the application form for certification of the amount of greenhouse gas reduction for external projects is completed. And the application is made through the offset register system. 

④ Consultation with the Ministry of Environment
When the review of the verification results is completed, the evaluation results are discussed with the Ministry of Environment.

⑤ Certification Committee
If the results of the Ministry of Environment's consultation are eligible for the External Project, the agenda will be bringed to the Emissions Certification Committee.

⑥ Issuance of certification results
If certification is decided as a result of the deliberation, a greenhouse gas reduction certificate will be issued to external project operators on the condition of switching to offset emission rights within five years from the date of certification.