Public Institutions Purchased 6,060 Low-Emission Vehicles Last Year... 28% Increase from the Previous Year

Only 69% of Public Institutions Achieved 100% Quota for Low-Emission Vehicle Purchases
Administrative and Public Institutions Hold 17% Low-Emission Vehicles
This Year, Public Sector Must Purchase 80% Electric and Hydrogen Vehicles... Quota Raised to 100% in 2023

[Sejong=Asia Economy Reporter Joo Sang-don] Last year, the public sector purchased 6,060 new low-emission vehicles, marking an increase of nearly 28% compared to the previous year.

On the 11th, the Ministry of Environment and the Ministry of Trade, Industry and Energy announced the results of the '2020 Public Sector Low-Emission and Eco-Friendly Vehicle Ownership and Purchase Performance' survey.

Low-emission vehicles include electric, hydrogen, hybrid vehicles, and liquefied petroleum gas (LPG) and gasoline vehicles that meet low-emission vehicle emission standards. Eco-friendly vehicles refer to electric, hydrogen, and hybrid vehicles excluding LPG and gasoline vehicles.

The survey results showed that among the 609 institutions subject to mandatory purchases in the public sector, a total of 7,736 new vehicles were purchased (including leases) last year. Of these, 6,060 vehicles (78.3%) were low-emission vehicles (5,494 based on eco-friendly vehicle criteria), an increase of 27.9% from the previous year.

Last year, 422 institutions (69%) achieved the 100% mandatory purchase rate for low-emission vehicles, including 30 national institutions, 139 local governments, and 253 public institutions. Institutions that did not meet the mandatory purchase rate totaled 187 (31%), including 20 national institutions, 112 local governments, and 55 public institutions. Among these, the Ministry of Environment plans to impose fines of up to 3 million KRW on 120 local governments and public institutions.

A survey of vehicle ownership among 1,538 administrative and public institutions found that the public sector owns about 120,000 vehicles, of which 20,993 (17.3%) are low-emission vehicles (19,194 based on eco-friendly vehicle criteria). The proportion of electric and hydrogen vehicles in the public sector was 8.3% (10,075 vehicles), more than 13 times higher than the 0.6% share of electric and hydrogen vehicles among all vehicles nationwide.

To encourage the purchase of electric and hydrogen vehicles in the public sector, the government applies a mandatory purchase rate of about 80% for electric and hydrogen vehicles among new vehicles. According to a survey of vehicle purchase plans for institutions subject to mandatory purchases this year, the public sector plans to purchase a total of 5,654 new vehicles. Of these, 5,485 vehicles (97%) are low-emission vehicles (5,400 eco-friendly vehicles). Notably, the purchase plan for electric and hydrogen vehicles accounts for 4,431 vehicles (78.4%), expected to more than double compared to the 1,806 vehicles purchased in 2020.

The government plans to further strengthen the 'Public Sector Mandatory Purchase System' to lead the supply of electric and hydrogen vehicles in the public sector to achieve carbon neutrality in the transportation sector and reduce fine dust. The mandatory purchase rate for electric and hydrogen vehicles in the public sector will be raised from the current 80% to 100% by 2023, and agency heads' official vehicles will be prioritized for purchase as electric or hydrogen vehicles.

Kim Seung-hee, Director of Air Quality Policy at the Ministry of Environment, said, "Through the imposition of mandatory purchases of electric and hydrogen vehicles and the conversion of agency heads' vehicles, the public sector's proactive role will accelerate the popularization of electric and hydrogen vehicles." She added, "We will intensify demand creation in both public and private sectors through the public sector mandatory purchase system and the corporate '2030 Zero-Emission Vehicle Transition 100' campaign."

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