CCU Industry Promotion Accelerates... Government Unveils First Certification System

Laying the Groundwork for Technology and Market Infrastructure
to Achieve Carbon Neutrality and Meet International Environmental Regulations

The government has begun overhauling regulations to actively foster the carbon capture utilization (CCU) industry, which converts carbon dioxide into valuable resources.

On November 14, the Ministry of Science and ICT held a CCU policy hearing and the CCU Initiative Forum at EL Tower in Seoul, where it unveiled, for the first time, draft systems for technology and product certification as well as for designating specialized companies.

Koo Hyukchae, First Vice Minister of the Ministry of Science and ICT, is attending a meeting and sharing his opinions. Photo by Yonhap News

As the lack of clear standards has been cited as a reason for delayed market formation, this public disclosure is significant as it marks the first institutional foundation for the industrialization of CCU.

CCU technology converts emitted carbon dioxide into industrial resources such as aviation fuel or methanol. Its strategic importance is growing amid tightening international regulations, including the carbon border adjustment mechanism and mandatory use of sustainable aviation fuel.

Korea has designated CCU as a core sector for achieving its 2035 national greenhouse gas reduction targets, setting a maximum reduction goal of 6.7 million tons. Accordingly, the research and development budget is also increasing, with the Ministry of Science and ICT planning to expand the CCU R&D budget to 41.8 billion won in 2026, about a 40% increase from the previous year.

The draft certification system unveiled at the hearing clearly defines, based on legal grounds, the scope of application for CCU technologies and products, the certification procedures, and standards reflecting greenhouse gas reduction effects.

Additionally, the draft system for designating specialized companies sets forth criteria for objectively evaluating corporate capabilities, such as R&D investment ratios and financial requirements. The government aims to reduce early-stage confusion in the industry and promote private investment by unifying the technical scope and company criteria, which previously varied by institution.

During the event, experts from industry and academia pointed out the lack of demonstration projects and economic feasibility, and suggested that incentives and large-scale demonstration support are necessary for the certification and specialized company designation systems to lead to real industrial activation.

The government plans to reflect these opinions in its official notices and to devise support measures for technologies and companies that receive certification and designation, thereby encouraging the formation of a private sector-led market.

Koo Hyukchae, First Vice Minister of the Ministry of Science and ICT, stated, "This hearing is the first public policy announcement in the CCU sector since the NDC target was set," adding, "It demonstrates the Ministry's commitment to achieving CCU reduction targets." He continued, "We will strengthen inter-ministerial cooperation and continue policy support so that the CCU sector can become a new growth engine in the transition to a carbon-neutral era."

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