Strengthening the Average Vehicle Greenhouse Gas Emission Standard to 70g per km by 2030

Ministry of Environment Finalizes Vehicle Greenhouse Gas Emission Standards for 2021-2030

'Low Emission Vehicle Supply Target System' Gradually Strengthened…From This Year, Zero-Emission Vehicle Supply Targets Newly Established
In 2019, Renault Samsung, Ssangyong, and FCA Failed to Meet Standards Even After Carrying Over Past Excess Achievements

[Sejong=Asia Economy Reporter Joo Sang-don] The average allowable greenhouse gas emission standard for automobiles will be strengthened to 70g per kilometer by 2030.

The Ministry of Environment announced on the 15th that it has finalized the automobile greenhouse gas emission standards from 2021 to 2030 accordingly. Specifically, the average allowable greenhouse gas emission standard, which is 97g per kilometer this year, will be gradually strengthened to 89g in 2025 and 70g in 2030.

The Ministry of Environment plans to conduct a mid-term review by 2025 to examine the appropriateness of the greenhouse gas standards after 2026 based on international trends, national greenhouse gas reduction targets, and compliance status by automobile manufacturers.

According to the application of the strengthened greenhouse gas standards, the Ministry expects the sales proportion of zero-emission vehicles such as electric and hydrogen cars to increase, while the proportion of internal combustion engine vehicles will decrease, resulting in a reduction of more than 18.2 million tons of greenhouse gases in the transportation sector by 2030.

Following last year's '2050 Carbon Neutrality Declaration,' the government is reviewing and introducing various policy measures for the transition to carbon neutrality, including adjusting the national greenhouse gas reduction target for 2030. To strengthen the supply obligations for low emission and zero-emission vehicles by automobile sellers, the government plans to gradually strengthen the 'Low Emission Vehicle Supply Target System' by newly establishing zero-emission vehicle supply targets starting this year.

Additionally, the government plans to promote comprehensive measures for the carbon-neutral transition in the transportation sector, such as expanding subsidy caps for early scrapping of old diesel vehicles to support early reduction of old vehicles and transition to eco-friendly vehicles.

The automobile greenhouse gas management system is a system to reduce greenhouse gases in the transportation sector and has been in effect since 2012 (140g per kilometer) under the 'Framework Act on Low Carbon, Green Growth.'

Until 2018, most manufacturers met the standards, but in 2019, 12 out of 19 manufacturers failed to meet the standards.

Among the 12 manufacturers that failed to meet the 2019 standards, nine manufacturers including Kia, Mercedes-Benz, BMW, Audi Volkswagen, Honda, Ford, Volvo, Cadillac, and Porsche meet the standards if they carry over past excess achievements. However, three manufacturers?Renault Samsung, Ssangyong, and FCA?fail to meet the standards even after carrying over past excess achievements.

If the greenhouse gas standards are not met, a penalty of up to 1% of sales revenue may be imposed under the Air Quality Preservation Act. The three manufacturers that failed to meet the 2019 standards must repay the shortfall with excess achievements from the next three years or resolve the shortfall through performance trading with other manufacturers.

Kim Seung-hee, Director of Air Environment Policy at the Ministry of Environment, said, "We will expand support such as subsidies for zero-emission vehicles and closely monitor the implementation status of the system to ensure that the automobile industry can respond smoothly to the strengthened greenhouse gas standards."

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