K-Taxonomy Embraces Nuclear Power... Confirmation Expected in September (Update)

Ministry of Environment Presidential Report... Inclusion of Nuclear Power in K-Taxonomy
Draft K-Taxonomy to be Announced by End of This Month... Final Version to be Confirmed in September
Redesign of NDC Sectoral Reduction Targets... Advancement of Emissions Trading System
Promotion of Domestic Production of Semiconductor Core 'Ultrapure Water'... 1.4 Trillion Won Domestic Market
200,000 Zero-Emission Vehicles to be Supplied During Yoon's Term... Share Increase from 1% to 8%

President Yoon Visits Cladding Material Storage for Shin Hanul Units 3 and 4
(Changwon=Yonhap News) Reporter Seo Myeong-gon = On the morning of the 22nd of last month, President Yoon Seok-yeol visited Doosan Enerbility in Changwon, Gyeongnam, where he received an explanation about the Korean nuclear power plant APR1400 at the cladding material storage for the reactors and steam generators of Shin Hanul Units 3 and 4. 2022.6.22
Photo by Seo Myeong-gon
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The government plans to include nuclear power generation in the ‘Korean Green Taxonomy (K-Taxonomy)’ by September. The ‘2030 Nationally Determined Contribution (NDC)’ established during the Moon Jae-in administration to increase the share of nuclear power will also be redesigned. The government aims to distribute 2 million zero-emission vehicles (ZEVs), such as electric cars, during President Yoon Suk-yeol’s term.

Han Hwa-jin, Minister of Environment, reported these key new government initiatives to President Yoon Suk-yeol on the 18th. The Ministry of Environment’s work report included three core tasks: ▲scientific and feasible carbon neutrality implementation ▲pleasant and safe environment ▲environment in harmony with national and corporate competitiveness, along with nine detailed sub-tasks.

Inclusion of Nuclear Power in K-Taxonomy... Referencing EU Standards

The Ministry of Environment has decided to include nuclear power in the K-Taxonomy. Taxonomy is a system that classifies green economic activities such as eco-friendly and low-carbon initiatives. If classified as a green economic activity under the taxonomy, various financial benefits such as green bonds and green funds can be received. The Ministry of Environment intends to attract green investments from the financial sector by including nuclear power in the K-Taxonomy.

The Ministry of Environment is currently conducting final consultations on the K-Taxonomy with related ministries, including the Ministry of Trade, Industry and Energy. The Ministry plans to announce a draft of the K-Taxonomy as early as the end of this month, gather additional feedback, and finalize the plan by September.

The Ministry of Environment plans to actively refer to the European Union (EU) taxonomy during the finalization process of the K-Taxonomy. Earlier this month, the European Parliament approved the final EU taxonomy, which includes nuclear power. However, the EU taxonomy conditions the inclusion of nuclear power on the construction of high-level radioactive waste disposal facilities. Minister Han stated at a briefing, “We will refer to the EU taxonomy standards regarding the conditions for including nuclear power,” adding, “(However) we will carefully review and devise reasonable measures considering domestic and international circumstances.”

President Yoon Suk-yeol Receiving a Report on Environmental Ministry Affairs
(Seoul=Yonhap News) Reporter Seo Myeong-gon = On the afternoon of the 18th, President Yoon Suk-yeol is receiving a departmental report from Han Hwa-jin, Minister of Environment, at the Yongsan Presidential Office Building in Seoul. 2022.7.18 [Provided by the Presidential Office, resale and DB prohibited]
Photo by Seo Myeong-gon
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2030 NDC Redesign... Expansion of Paid Allocation

The Ministry of Environment will also revise sector-specific reduction targets in the NDC. This is to increase the role of nuclear power and minimize greenhouse gas emissions in the power generation sector, in line with the new government’s energy policy direction emphasizing an increased share of nuclear power. After expert reviews, the Ministry plans to redesign the sectoral reduction targets of the NDC and incorporate them into the ‘1st National Carbon Neutrality and Green Growth Basic Plan’ by March next year.

The government will also advance the emission trading system, which has been implemented since 2015. First, the Ministry of Environment plans to revise the emission trading system so that companies can receive more emission allowances as they reduce greenhouse gas emissions. The paid allocation method, where emission allowances are allocated for a fee, will also be expanded. Revenues from the expansion of paid allocation will be invested in technology development and support for companies’ carbon reduction activities. An official from the Ministry of Environment explained, “To reduce the burden on the industry, we will devise reasonable measures considering international trends and industrial competitiveness,” adding, “(These measures) will be applied from 2026 to allow companies sufficient preparation time.”

Fine particulate matter (PM2.5) concentrations will be reduced by 30% during President Yoon Suk-yeol’s term. To this end, the early scrappage support for old diesel vehicles will be expanded from the existing grade 5 vehicles to grade 4 vehicles. The seasonal fine dust management period, currently four months, will also be extended to prepare for high-concentration fine dust situations. The forecast for high concentrations of fine particulate matter will be advanced from 12 hours to 2 days in advance.

Minister Han Hwajin, New Government Work Report Briefing
(Seoul=Yonhap News) Reporter Kim Seungdoo = Minister Han Hwajin of the Ministry of Environment is giving a new government work report briefing at the briefing room of the Government Seoul Office Building on the 18th. 2022.7.18
kimsdoo@yna.co.kr
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Water Prices Frozen... ‘Ultrapure Water’ to be Localized by 2025

Measures to stabilize people’s livelihoods were also announced. The Ministry of Environment will freeze water prices for metropolitan water supply and expand the fee reduction period for small-scale water service providers from the existing two months to up to six months. Additionally, to meet the increasing water demand due to new and expanded industrial sites, the Ministry plans to stably supply high-quality water by utilizing various technologies such as seawater desalination and wastewater reuse.

Support measures for key industries such as semiconductors have also been prepared. The Ministry of Environment plans to localize related technologies by 2025 to stabilize the supply chain of ultrapure water, known as the ‘lifeblood’ of the semiconductor industry. Ultrapure water technology is one of the core technologies in semiconductor processes, with a domestic market size reaching 1.4 trillion KRW.

Furthermore, the Ministry of Environment plans to distribute 2 million zero-emission vehicles over the five years of the Yoon Suk-yeol administration. When 2 million zero-emission vehicles are distributed, their share among all registered vehicles will increase from 1% last year to 8%. The Ministry expects that expanding the distribution of zero-emission vehicles will create a solid domestic market and induce technological innovation.

Minister Han said, “We will carry out the policy tasks reported to the President without fail,” adding, “We will also carefully manage environmental policies not included in this work report to achieve our goals.”

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