2030 Vehicle Greenhouse Gas Standards Strengthened by 28%... Fuel Efficiency Standards Also Increased

Ministry of Environment Announces Administrative Notice from 31st to October 29th
Strengthening Standards to Average Greenhouse Gas Emissions of 70g/km and Fuel Efficiency of 33.1km/L by 2030
"Era of Future Vehicles... Reducing Transportation Greenhouse Gas Emissions"

[Asia Economy Reporter Moon Chae-seok] Greenhouse gas and fuel efficiency standards for automobiles will be strengthened by 2030. The greenhouse gas standard for cars manufactured in 2030 will change from the current 97g per km to 70g per km, a reduction of 27.8%.

The Ministry of Environment announced on the 30th that it will hold an administrative notice period from the 31st until October 29 for the partial amendment of the "Notice on Average Energy Consumption Efficiency and Greenhouse Gas Emission Allowance Standards for Automobiles and the Application and Management of the Standards." In accordance with the transparency provisions of the Korea-US Free Trade Agreement (FTA), the consultation period was set longer than the usual administrative notice period of 20 days or more.

The amendment includes the "average greenhouse gas and fuel efficiency standards for automobiles" that manufacturers must achieve annually from next year until 2030.

Source: Ministry of Environment

According to the amendment, the average greenhouse gas standard for passenger cars and vans with 10 or fewer seats will be strengthened to 70g per km in 2030. From the automobile industry's perspective, this means a 27.8% reduction from this year's 97g/km.

The fuel efficiency standard will be strengthened to 33.1 km per liter in 2030, an improvement of 26.6% from the current 24.3 km. However, the current standards of 97g/km (greenhouse gas) and 24.3 km/l (fuel efficiency) will be maintained until 2022 and then gradually strengthened.

The amendment applies to small and medium-sized vehicles with a gross weight under 3.5 tons. It is applied separately to passenger cars and vans with 10 or fewer seats, vans with 11 to 15 seats, and small cargo vehicles.

The application period for the sales performance additional recognition incentive (super credit) for electric vehicles, hydrogen vehicles, and hybrid vehicles will be extended until 2026. For compact cars and liquefied petroleum gas (LPG) vehicles, a portion of emissions will be deducted.

Additionally, manufacturers experiencing business difficulties (for example, consecutive net losses for the past three fiscal years) will have their repayment period for unmet performance extended from the current 3 years to 4 years.

The Ministry of Environment stated that the notice was amended based on three principles: achieving the transport sector reduction target in the "2030 National Greenhouse Gas Reduction Roadmap Revision," strengthening standards to the level of major advanced automobile countries such as the US and the European Union (EU), and considering the situation of the automobile industry.

Source: Ministry of Environment

According to the Ministry of Environment, Korea's current greenhouse gas standards are at an intermediate level between the US and the EU. The ministry explained that the next target standards were set after comprehensive consideration of Korea's market characteristics and trade environment impacts through consultations with authorities.

During the implementation of the system, the ministry will continuously monitor the status of future vehicle distribution and changes in international trends, and conduct a mid-term review around 2025 for the latter half standards (2026?2030) to respond flexibly.

Meanwhile, the Ministry of Environment plans to promptly introduce a greenhouse gas and fuel efficiency management system for medium and large commercial vehicles (medium and large cargo vehicles over 3.5 tons gross weight, buses with 16 or more seats, etc.) in the future.

Hwang Seok-tae, Director of the Living Environment Policy Office at the Ministry of Environment, explained, "Recognizing the need for active greenhouse gas reduction in the transport sector to overcome the imminent climate crisis, we comprehensively considered the conditions of the automobile industry and the distribution of future vehicles."

Director Hwang said, "The next standards are at a level difficult to achieve with internal combustion engine vehicles alone, requiring the automobile industry's active development of eco-friendly vehicle technologies and efforts to expand their distribution. The government also plans to accelerate the era of popularizing eco-friendly future vehicles through bold financial investments and infrastructure development such as the Green New Deal."

Source=Ministry of Environment

This content was produced with the assistance of AI translation services.