Government Holds Vehicle Carbon Neutrality Council Meeting... Focused Discussion on Eco-friendly Fuel 'e-Fuel'

Ministry of Industry Holds 2nd 'Automotive Industry Carbon Neutrality Council' Meeting

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government held a joint public-private 'Automobile Industry Carbon Neutrality Council' and discussed ways to utilize 'carbon-neutral fuel (e-fuel)' that can play a role in carbon reduction during the transition from internal combustion engine vehicles to future cars.

On the 14th, the Ministry of Trade, Industry and Energy held the 2nd Automobile Industry Carbon Neutrality Council via video conference, attended by executives of leading companies in the industry and related experts. This council was launched in March to encourage the completed vehicle and parts industries to join the 2050 carbon neutrality vision and to promote the transition to eco-friendly vehicles and technological innovation.

At this 2nd council meeting, they discussed ways for the Korean automobile industry to swiftly transition to the eco-friendly vehicle sector while maintaining and expanding production bases and jobs to fulfill the '2050 Carbon Neutrality Joint Declaration.' In particular, discussions focused intensively on e-fuel for internal combustion engine vehicles as a means of carbon reduction. Utilizing e-fuel allows carbon reduction even without replacing internal combustion engine vehicles with electric or hydrogen vehicles.

Professor Min Kyungdeok of Seoul National University presented on the "Technical and Economic Feasibility of Carbon Neutral Fuel." Professor Min stated, "Various technologies such as e-fuel, next-generation biofuels, and hydrogen engines are being developed and demonstrated domestically and internationally as carbon neutrality measures in the transportation sector," adding, "Especially in the medium and large vehicle sectors, carbon-neutral fuels need to be considered alongside hydrogen vehicles." However, he diagnosed that ▲carbon dioxide capture technology ▲hydrogen and carbon dioxide synthesis technology require research and development (R&D) support to secure economic feasibility and mass production.

Dr. Lee Hanggu of the Korea Automotive Technology Institute presented on the "Industrial and Economic Significance of Carbon Neutral Fuel." He mentioned that carbon-neutral fuel can be applied to internal combustion engine vehicles, providing a buffering role in the transition to eco-friendly vehicles for the automotive parts and refining industries.

Additionally, Dr. Kim Jaekyung of the Korea Energy Economics Institute emphasized the simultaneous promotion of expanding the supply of zero-emission vehicles such as electric and hydrogen vehicles, strengthening demand management, and technological innovation through his presentation on the "Current Status and Tasks of the 2050 Carbon Neutrality Scenario."

The participants proposed and discussed directions for response to achieve carbon neutrality, including ▲institutional improvements to incentivize investment in eco-friendly vehicle transition ▲extension of the sunset clause on hybrid vehicle acquisition tax and individual consumption tax ▲R&D support for business restructuring.

Jung Manki, Chairman of the Korea Automobile Manufacturers Association, urged, "Please make efforts so that the opinions discussed today can be reflected in policies to enable our completed vehicle and parts companies to boldly challenge carbon neutrality."

The Ministry of Trade, Industry and Energy plans to prepare a 'Future Vehicle Transition Strategy for the Transportation Sector' by the end of the year to enhance the competitiveness of the automobile industry. A ministry official said, "Since the first council meeting, the government has been steadily establishing legal and institutional foundations so that our automobile industry can vigorously advance toward carbon neutrality," adding, "In April, a carbon-neutral fuel research group was launched to verify the industrial value and potential of carbon-neutral fuel, and in June, the amendment to the Eco-friendly Vehicle Act passed the National Assembly plenary session, establishing a legal foundation for large-scale demand creation and charging convenience innovation."

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