Lee Jae-myung "Internal Combustion Engine Vehicle Sales to Stop by 2040"... Officially Announces Carbon Tax Introduction

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] Lee Jae-myung, the Democratic Party presidential candidate and Governor of Gyeonggi Province, announced on the 26th that internal combustion engine vehicles will be banned from sale starting in 2040.

On the same day, Lee held a press conference at the National Assembly under the theme "Turning the Climate Crisis into an Opportunity for Growth," the first in a series of transition growth pledges, stating, "We will accelerate the era of eco-friendly future vehicles such as electric and hydrogen cars to aim for zero energy imports in the transportation sector."

He plans to continue providing subsidies for purchasing eco-friendly vehicles and enforce strong emission and fuel efficiency regulations. Lee also announced that by 2030, renewable energy production facilities will be expanded by an average of 20 gigawatts annually, significantly increasing the share of renewable energy and replacing coal power plants early. He said this could replace tens of trillions of won in annual energy imports. Additionally, he pledged to carry out large-scale national investments to build an AI-based active transmission and distribution network called the "Energy Highway."

The Energy Highway aims to attract about 40 trillion won in private investment. Lee also proposed establishing a Ministry of Climate and Energy to serve as a control tower for construction and maintenance. He promised to revitalize the domestic economy through this industrial transition and create more than one million "green jobs." Regarding job losses during the transition, he said a public transition fund would be established to provide sufficient social safety nets.

He also formalized plans to introduce a "carbon tax." The tax would be levied to suppress carbon emissions, and a portion of the revenue would be used to support industrial transition. Lee did not specify the exact timing for the introduction of the carbon tax. However, when announcing his basic income pledge in the past, he mentioned, "The bill must pass at least by next year to start the following year." Lee set the Moon Jae-in administration's declared goal of carbon neutrality by 2050 as a target but stated that it is desirable to advance the achievement date to 2040.

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