"More Subsidies for High-Performance Electric Vehicles... 30 Trillion Investment in Green Technology"

Ministry of Environment Announces 2024 Work Plan

The Ministry of Environment has decided to provide higher subsidies for electric vehicles (EVs) with batteries that have high recycling value starting this year. This move is interpreted as a measure to curb 'Chinese-made lithium iron phosphate (LFP) EVs,' which have relatively lower recycling value. The ministry also set goals to achieve 22 trillion KRW in environmental industry exports within the year and to reach a cumulative 30 trillion KRW in green investments by 2027.

The Ministry of Environment announced its major policy implementation plan for 2024 on the 26th, which includes focusing subsidies on high-performance vehicles to promote the adoption of electric and hydrogen vehicles, and expanding charging infrastructure at key transit hubs to achieve 900,000 zero-emission vehicles.

The Ministry stated, "We will expand subsidies centered on high-performance vehicles that have batteries with high recycling value and long driving range per charge." This is expected to favor domestic NCM batteries over Chinese-made LFP batteries, which have relatively lower recycling value. At a briefing the previous day, Minister Han Hwa-jin explained, "We plan to reform the EV subsidy system to reflect eco-friendliness, such as battery efficiency."

Han Hwa-jin, Minister of Environment, is attending the meeting of the Special Committee for Supporting the 2030 Busan World Expo held at the National Assembly on the 26th, delivering an opening remark. Photo by Yoon Dong-joo doso7@

Regarding fine dust, the seasonal fine dust management period (December to March) can be extended based on regional conditions, and 36-hour advance high-concentration forecasts will be expanded nationwide. Mandatory reduction obligations will be institutionalized for large-scale emission sources that were previously managed through voluntary agreements.

Indoor air quality diagnostics for daycare centers (500 locations) and facility improvements (50 locations) will be expanded, and 8.6 billion KRW will be invested to install tunnel ventilation systems in underground subway stations. Pilot support will also be provided for installing cooking smoke prevention facilities.

Fine dust forecast information will be continuously shared with China, and a high-concentration communication channel will be operated. International cooperation will be strengthened, including a joint investigation with NASA (National Aeronautics and Space Administration) to identify causes of high-concentration fine dust.

Additionally, the ministry announced plans to flexibilize the 'Total Emission Management System for Workplace Air Pollutants,' which sets emission caps for facilities that emit large amounts of air pollutants, allowing emissions only within those limits.

By August this year, assuming regional total emission limits are maintained, facilities will be allowed to advance their emission amounts for the following year or offset emissions through reduction activities outside the facility.

The Ministry of Environment will also set 'recycled material usage targets' for PET bottles. Currently, these targets are set only for producers who manufacture more than 10,000 tons of PET raw material annually, with goals of 10% by next year and 30% by 2030. Furthermore, waste batteries will be included in the free collection program for waste home appliances, making it easier for households to dispose of waste batteries.

Green investments will also be expanded. Using government support such as green bonds and loans as a catalyst, private green investments will increase from 1.8 trillion KRW in 2022 to 4.7 trillion KRW this year and 5.8 trillion KRW by 2027, aiming to achieve a cumulative 30 trillion KRW during the current administration.

Regarding green industries, the ministry plans to establish 10 green convergence clusters nationwide by 2028. 'All industries that can replace fossil fuel use, improve energy and resource efficiency, and enhance the environment' fall under green industries.

This year, the export and order target for green industries is set at 22 trillion KRW, which is 2 trillion KRW higher than last year's performance. The Ministry of Environment stated it will analyze environmental challenges in various countries and propose solutions to drive exports and orders.

For the Middle East, which is pursuing decarbonization, the ministry plans to export green hydrogen production facilities; for Central Asia, which suffers from chronic energy shortages, landfill gas power generation facilities will be exported. The ministry will also pursue entry into 'untapped markets' such as North America and Australia (green gas) and Africa (landfill gas).

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