KAMA "National Interest Must Come First When Resetting Automobile Carbon Regulation Targets"

[Asia Economy Reporter Changhwan Lee] There has been a claim that South Korea should also pursue regulatory policies prioritizing national interests regarding automobile carbon dioxide (CO2) emission regulations.

The Korea Automobile Manufacturers Association (KAMA) recently argued on the 20th that although advanced countries such as the European Union (EU) and the United States are moving to tighten automobile CO2 regulations for carbon neutrality, these regulations are being established based on their own national interests, so South Korea should also pursue regulatory policies prioritizing national interests.

In July last year, the EU Commission announced the comprehensive climate change policy package (fit-for-55), which includes major environmental regulations and amendments to achieve the 2030 greenhouse gas emission targets, and also proposed strengthening automobile CO2 regulations.

However, since then, the EU has faced significant difficulties in the negotiation process due to conflicting interests between automobile-producing and non-producing countries. Some member states have expressed deep concerns about the EU Commission's stringent target levels, and discussions are reportedly at a standstill.

In the case of the United States, in September last year, a tax law amendment bill was introduced in the House of Representatives to provide additional tax benefits exclusively for American-made electric vehicles, actively supporting the sales of electric vehicles by American companies.

According to the amendment, in addition to the existing tax credit of $7,500 (approximately 8.93 million KRW) per electric vehicle, an additional tax benefit of $4,500 (approximately 5.36 million KRW) will be provided for electric vehicles produced at American factories with unionized labor, and $500 (approximately 600,000 KRW) for those equipped with American-made batteries.

If the bill is finalized, it is analyzed that the improved price competitiveness of electric vehicles from the American Big 3 (GM, Ford, Stellantis) with unionized labor will create a favorable environment for sales, making it advantageous to meet the strengthened automobile CO2 regulations.

Jung Manki, Chairman of KAMA, said, "Considering the advanced countries' moves to strengthen automobile CO2 regulations by 2030, South Korea is also expected to reset its targets," adding, "When resetting targets, South Korea, as an automobile-producing country, needs wise target setting that considers the interests of the domestic industry, similar to the EU and the United States."

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