$CO_2$ emission trading system is regarded as the most efficient way to reduce global GHG emissions. However, real emission trading market setting seems not as easy as its theoretical concept. Efficiency can be achieved only if emission market system is well organized. Emission trading market setting is so complicated that many schemes are being studied to make better trading system.
One of the important factors is initial allocation of emission scheme. Any scheme is efficient but its distributional factors are very different and have equity problems. For example, auction scheme is the best way among several choices but there exists a big sectoral burden. Instead of that, grandfathering option can be the most actual way. This research supports how to build the appropriate initial allocation scheme. To do this, several initial allocation decision factors were selected and surveyed by some of the important researchers who currently study these fields. Consequently, grandfathering option is real way and should be considered for the real emission trading market system. And some of foreign cases and national studies were introduced to support the appropriate initial emission allocation way.
