Press Release

Board View

Carbon Neutrality Act Passed by National Assembly Heralding Economic and Social Transition Towards 2050 Carbon Neutrality

▷ Korea becomes the 14th country in the world to make 2050 carbon neutrality implementation into law. The law also provides the range of an emission reduction target for 2030 to be 35% or more from 2018 level.

▷ The Act specifies procedures of implementing 2050 carbon neutrality vision, detailing the establishment of the carbon neutrality commission and the framework plan. Various policy options for climate impact assessment, climate response fund and just transition are also included in the Act.


Minister of Environment Han, Jeoung-ae announced that the Framework Act on Carbon Neutrality and Green Growth (or "Carbon Neutrality Act"), the legal basis of tackling climate crisis and achieving 2050 carbon neutrality, was passed by the National Assembly on 31 August and will be proclaimed in September.


Korea announced its vision for 2050 carbon neutrality in its Long-term low Emission Development Strategy (LEDS) submitted to the UN in December last year. The Carbon Neutrality Act stipulates legal procedures and policy instruments to achieve  the country's vision.


Carbon neutrality is a state where greenhouse gas emissions become net-zero as they are balanced out by carbon removals.


The IPCC*, the most eminent international organization under the UN in the field of climate change, found in its report in October 2018 that all countries should achieve carbon neutrality by 2050 so as to limit the global average temperature increase to 1.5 °C.

* Intergovernmental Panel on Climate Change


Since August last year, a total of 8 bills on tackling climate crisis and achieving carbon neutrality have been proposed. The bills have been assigned to the Environment and Labor Committee of the National Assembly in February this year and since then, have been discussed at 3 sessions of public hearings and 5 sessions of sub-committees until August. Through these sessions, the bills have been examined and combined into one integrated bill. The Environment and Labor Committee passed the bill on 19 August and the Legislation and Judiciary Committee approved the bill on 25 August. Then the National Assembly passed the bill at the plenary session on 31August.


The enactment of the Carbon Neutrality Act is significant in following aspects: 

1. The Act makes Korea the 14th country in the world to enshrine 2050 carbon neutrality vision and its implementation mechanism into law. The Act clearly states 2050 carbon neutrality as Korea's national vision and legally sets forth procedures required to achieve that vision. The procedures are mainly about the details on establishing a national strategy, a mid-to long-term greenhouse gas emissions reduction target, and a framework plan as well as on reviewing implementation.

2. The Act sets a mid-term target to achieve the 2050 carbon neutrality vision. The Act stipulates that social discussions on a greenhouse gas emission reduction target for 2030 will be started in the range of 35% or more, which is 9 percentage point increase from the previous target (26.3% from 2018 level). Provided that linear emission reductions are to be made from 2018 to 2050, the emissions reduction target for 2030 could be calculated to be 37.5%. Given this calculation, the Act provides the range of an emission reduction target to be 35% or higher, which indicates Korea in effect has embarked on a journey to become carbon-neutral by 2050.

3. Participatory governance is legislated in the Act to encourage participation of the youth, workers, and local residents. With the enactment of the Act, the 2050 carbon neutrality commission, already established in last May, is to be redefined as a commission with legal status. The scope of governance, previously limited to experts and businesses, will include the youth and workers.

4. Various policy options are included in the Act to implement carbon neutrality The Act adopts climate impact assessment, the system to evaluate climate impacts of major national plans and development projects. Climate-responsive budgeting is also to be introduced in the Act, which is to set emissions reduction targets in drafting national budgets. Climate response fund will be newly established as well to support industries in transforming their structure and industrial processes.

5. The Act includes detailed policy measures for just transition. The measures aim to protect the regions and groups vulnerable to impacts in the context of transition. Designation of special districts and establishment of support centers are part of such measures designed to protect specific regions and groups who could be affected by the transition, for instance, workers in coal and internal combustion engine vehicle industries.

6. The Act proposes a transition from the centralized system into a decentralized one. Local plans and committees are listed as elements of the local implementation mechanism in the Act. An interactive and collaborative system between central and local governments is also to be developed for further sharing of information and feedback. The Act lays out details on support measures, i.e., supporting data collection for local emissions as well as establishing carbon neutrality support centers. The cooperation mechanism among local governments such as Carbon-neutral Cities Coalition will also be established.


Minister Han said, "With the enactment of the Carbon Neutrality Act, we now have the basis on which we could pursue our carbon-neutral policies for the next 30 years." She also added, "After having a social discussion, a mid-to long-term greenhouse gas emission reduction target will be set within the range defined by the Act. Meanwhile, we will do our best to design and implement the climate impact assessment and other new policy measures."