Nuclear Power Becomes 'Green Energy'... NDC Also Redesigned (Comprehensive)

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
2 Million Zero-Emission Vehicles to be Supplied During Yoon's Term... Share from 1% to 8%

President Yoon Suk-yeol Receiving a Work Report from the Ministry of Environment
(Seoul=Yonhap News) Reporter Seo Myeong-gon = On the afternoon of the 18th, President Yoon Suk-yeol is receiving a departmental work report from Minister of Environment Han Hwa-jin 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

[Asia Economy Sejong=Reporter Lee Jun-hyung] The government will 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 plans to distribute 2 million zero-emission vehicles (ZEVs), such as electric cars, during President Yoon Suk-yeol’s term.

On the 18th, Minister of Environment Han Hwa-jin reported these core new government initiatives to President Yoon Suk-yeol. The Ministry of Environment’s work report included three key tasks: ▲scientific and feasible carbon neutrality implementation ▲pleasant and safe environment ▲environment in harmony with national and corporate competitiveness, along with nine detailed tasks. President Yoon instructed Minister Han, saying, “(Environmental regulations) must be based on science, not ideology or slogans,” and “Please create environmental policies considering industrial realities and listening to voices from the field.”

Including 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 aims 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 intends 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, “The conditions for including nuclear power will refer to the EU taxonomy standards,” adding, “(However) we will carefully review and prepare reasonable measures considering domestic and international circumstances.”

2030 NDC Also Redesigned... Expansion of Auctioning

The Ministry of Environment will also revise the sectoral reduction targets of 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 the expansion of nuclear power. After expert reviews, the Ministry plans to redesign the sectoral reduction targets of the NDC and reflect them in the ‘1st National Carbon Neutrality and Green Growth Basic Plan’ by March next year. President Yoon said, “Maintain the carbon neutrality target, but design detailed sectoral and annual roadmaps realistically considering actual conditions.”

The government will also advance the enhancement of the emissions trading system implemented since 2015. First, the Ministry of Environment plans to revise the emissions trading system so that companies that reduce greenhouse gas emissions more can receive more emission allowances. 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. A Ministry of Environment official explained, “To reduce the burden on the industry, we will prepare reasonable measures considering international trends and industrial competitiveness,” adding, “It will be applied from 2026 to allow companies sufficient preparation.”

Fine particulate matter (PM2.5) concentrations will be reduced by 30% during President Yoon’s term. To this end, the early retirement support target 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 concentrations of fine particulate matter. The forecast for high concentrations of fine particulate matter will be advanced from 12 hours to 2 days in advance.

Han Hwa-jin, Minister of Environment, Briefing on New Government Work Report
(Seoul=Yonhap News) Photo by Kim Seung-doo = Han Hwa-jin, Minister of Environment, is giving a briefing on the new government work report at the government Seoul office briefing room on July 18, 2022.
kimsdoo@yna.co.kr
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Water Prices Frozen... Domestic Production of ‘Ultrapure Water’ 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. In addition, to respond to increased water demand due to new and expanded industrial bases, the Ministry plans to stably supply high-quality water using various technologies such as seawater desalination and wastewater reuse.

Support measures for key industries such as semiconductors were also prepared. The Ministry of Environment plans to domesticize 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 of 1.4 trillion won.

Furthermore, the Ministry of Environment plans to distribute 2 million zero-emission vehicles during 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, “I will carry out the policy tasks reported to the President without fail,” adding, “I will also carefully manage environmental policies not included in this work report to achieve the goals.”

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