Diesel Prices Must Reach Gasoline Levels Within 3 Years... Combustion Engine Cars Phased Out After 15 Years

National Climate and Environment Council to Announce Mid- to Long-Term Public Policy Proposals on the 23rd
Only Eco-Friendly Vehicles Sold from 2035 to 2040... "Contributing to Carbon Neutrality"
Coal Power to Be Phased Out by 2045 to Reduce Greenhouse Gas Emissions

Ban Ki-moon, Chairman of the National Climate and Environment Council Photo by Yonhap News

[Asia Economy Reporter Kim Bo-kyung] The Presidential Committee on National Climate and Environment has submitted a policy proposal to the government to raise diesel prices to the level of gasoline within three years and to ban the sale of internal combustion engine vehicles 15 years from now in order to respond to fine dust and climate change.

On the 23rd, the National Climate and Environment Committee held a press conference at the Korea Press Center in Jung-gu, Seoul, and announced mid- to long-term national policy proposals to overcome fine dust and the climate crisis. This proposal is the result of discussions and deliberations by a national policy participation group composed of about 500 ordinary citizens, and reflects opinions from the government, industry, local governments, and other sectors. It consists of a total of 29 tasks, including eight major tasks with significant social impact such as raising diesel and electricity prices and phasing out internal combustion engine vehicles.

The National Climate and Environment Committee proposed a plan to gradually increase the diesel price, currently at 88% of the gasoline price, to 95% to 100% over three years. Raising diesel prices is a means to curb demand for diesel vehicles, known as a major source of fine dust, and has been a pending issue unresolved due to disagreements among ministries. The 95% level corresponds to the average among OECD member countries, and 100% is the OECD recommended level. Forty percent of the national policy participation group adopted the plan to raise diesel prices to the same level as gasoline (100%), showing the highest response rate. In this case, it is expected that nationwide direct emissions of fine particulate matter (PM2.5) will decrease by 147 tons and nitrogen oxides (NOx) by 9,299 tons.

The committee also proposed banning the sale of internal combustion engine vehicles such as diesel and gasoline cars. The timeline was set for 2035 or 2040. From then on, only eco-friendly vehicles such as electric and hydrogen cars or hybrid vehicles will be allowed for sale domestically, aiming to contribute to achieving carbon neutrality by 2050. Opinions were also presented that supplementary measures are needed, including expanding eco-friendly vehicle infrastructure, protecting the automotive industry and workers, and supporting small freight vehicle operators.

[Image source=Yonhap News]

Furthermore, the National Climate and Environment Committee stated that coal power generation must be zeroed out by 2045 at the latest to reduce fine dust and greenhouse gases. However, it said, "It is desirable to advance this to before 2040 for carbon neutrality by 2050." It proposed establishing a 'coal power reduction roadmap' to prepare concrete implementation plans, with the overall power mix centered on renewable energy while complementarily utilizing nuclear power and natural gas. To reduce the current coal power share of about 40% to zero, it recommended actively considering ▲ stable power supply ▲ social consensus ▲ prevention of sharp electricity price hikes ▲ support measures for coal power companies, workers, and local economies.

To reduce coal power generation, the committee also suggested reflecting environmental costs and fuel costs in electricity rates. It stated that more than 50% of the environmental costs generated during power production should be gradually reflected in electricity rates by 2030. However, it emphasized the need to "reasonably calculate environmental costs and transparently provide related information." It also proposed establishing a rate system that reflects fuel cost fluctuations such as oil prices in electricity rates, while preparing consumer protection measures such as price caps.

In addition, the committee recommended ▲ establishing a think tank for fine dust and climate change response ▲ building a Northeast Asia joint response agreement ▲ strengthening penalties for illegal emissions at workplaces and providing tailored support for small and medium-sized enterprises ▲ expanding income tax deductions for public transportation ▲ conducting long-term health impact surveys on fine dust. Ban Ki-moon, chairman of the National Climate and Environment Committee, plans to meet with Environment Minister Cho Myung-rae early next month to discuss this policy proposal.

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