[ Feasible and Reasonable 2030 Greenhouse Gas Reduction Targets ]

- To achieve the 2030 national GHG emissions target (an increase of 40% compared to 2018), ▲sectoral reduction targets, including transition and industry, were reasonably adjusted, and ▲annual reduction targets were set for the first time

[Adjusted Greenhouse Gas Emissions Reduction Targets]

(Unit: 1 million tons of CO2e, parentheses show a decrease compared to 2018)

Sejong, March 30 - On March 21, 2023, the Korean government announced the draft of the first National Plan for Carbon Neutrality and Green Growth ('23~'42) (hereinafter the National Plan) and the implementation plan to achieve the 2030 Nationally Determined Contribution (reduction of national carbon emissions by 40% of 2018 levels). The draft of the national plan has yet to be finalized and will be supplemented after collecting opinions and feedback through public hearings. The primary purpose of the national plan is to prepare reasonable implementation measures, such as sectoral and annual reduction targets and strategies, considering economic and social conditions and feasibility comprehensively to faithfully comply with the greenhouse gas reduction targets committed to the international community.

On March 22, 2023, the Presidential Commission on Carbon Neutrality and Green Growth and the Ministry of Environment jointly held a public hearing on the first National Plan for Carbon Neutrality and Green Growth draft. The national plan is the legally-binding plan at the highest level (2023-2042) established under the enactment of the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis (implemented in March of 2022). The national plan is the Yoon administration's blueprint containing the willingness and policy direction to implement a transition to carbon neutrality and push ahead for green growth. 

Since August 2022, the national plan draft has been prepared through a total of 80 meetings with a technical workgroup composed of experts from national research institutes. Based on research and analysis, the plan went through consultation with twenty concerned authorities, such as the Ministry of Environment, the Ministry of Trade, Industry, and Energy, the Ministry of Land, Infrastructure, and Transport, and the Ministry of Science and ICT. Since November 2022, opinions from stakeholders, including officials from major industries emitting most GHG, academia, cooperatives, organizations, and local governments, have also been collected over twenty times.

<1-1 Overview of the national plan>

To realize a national vision for 'transition to a carbon neutral society and promotion of harmonious development of economy and environment' (Article 7 of the Framework Act on Carbon Neutrality and Green Growth), the national plan sets four national strategies: △ Detailed, efficient, and responsible transition to carbon neutrality, △ private-led effort for a transition to carbon neutrality and green growth, △ Transition to carbon neutrality with cooperation and sympathy, and △ proactively strive to achieve carbon neutrality, so the country can lead climate change adaptation in the international community.  

The detailed measures for implementation include 82 policy tasks, including △ policies to achieve 2030 Nationally Determined Contribution, △ sectoral and annual GHG reduction targets, △ GHG reduction policies, △ climate change adaptation, △ green growth, △ just transition, △local government-led projects, △human resources training and raising awareness, and △ international cooperation.

<1-2 2030 Nationally Determined Contribution (2030 NDC)>

To achieve the Nationally Determined Contribution, which is to reduce national carbon emissions by 40% of 2018 levels by 2030, as stipulated in the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis and its enforcement decree, the government has decided to switch energy sources more reasonably and established sectoral goals and implementation measures.   

For energy transition, the reduction target has been raised through a more balanced mix of nuclear and renewable energy sources and by accelerating the transition to clean energy such as solar and hydrogen. For industry, the reduction goal has been eased, considering domestic conditions, such as raw material supply and technological outlooks. For CCUS, the point that increasing domestic carbon storage can increase greenhouse gas absorption was reflected. In addition, for hydrogen, it is expected that emissions can partially increase due to the increase in blue hydrogen. The reduction targets of five sectors, building, transportation, agriculture and fisheries, waste, and carbon sink, remain the same as mentioned in the submitted NDC. As an auxiliary means of domestic reduction, international offset projects, including project development and expansion of public-private partnership investments, will be flexibly utilized. Based on this, Korean companies with excellent reduction technologies will be expected to participate in offset projects.

※ Yellow areas: Changes compared to the previous NDC

<1-3. Mid- to Long-term Sectoral Greenhouse Gas Reduction Policies>

Thirty-seven policy tasks for mid-to-long-term greenhouse gas reduction across ten sectors were designated to achieve carbon neutrality by 2050 and greenhouse gas reduction by 2030. The details are as follows. 

① (Transition) The government will comprehensively manage energy supply and demand by harmonizing nuclear and renewable energy.

The government will accelerate the shift to clean energy by reducing coal-fired power generation and expanding nuclear and renewable energy. It will enhance demand-side efficiency by establishing energy infrastructure, such as power grids and storage systems, and a reasonable energy pricing system based on market principles.

② (Industry) The government will transform toward a low-carbon economy and secure GHG reduction technologies through private-public cooperation. 

In order to support the commercialization of companies' reduction technologies, the government will start technology innovation funds and expand subsidies and loans. The government will provide incentives to companies, such as increasing the benchmark-based allocation in emission trading schemes, to induce voluntary reduction activities.

③ (Buildings) The government will improve building energy efficiency by enhancing building performance and strengthening related standards. 

The government will make zero-energy construction mandatory for new public buildings and support green remodeling for old private buildings. In addition, it will improve building efficiency by disclosing information on building performance.

④ (Transportation) The government will promote the green transition in all areas of mobility, on land, sea, and air. 

The government will pursue a transition to low-carbon transportation by distributing electric and hydrogen vehicles, converting all diesel trains to electric trains, and securing key technologies for zero-carbon (e.g., e-methanol) ships. It will strengthen greenhouse gas and fuel efficiency standards for internal combustion engine vehicles and expand demand-responsive transportation (DRT).

⑤ (Agriculture, Livestock, and Fisheries) The government will realize a sustainable agriculture, livestock, and fisheries industry by transitioning to a low-carbon industry. 

The government will expand smart farms and develop low-carbon production technologies, agricultural machinery, and facilities for the agriculture sector. For livestock farming, the government will focus on developing low-methane feed and expanding the utilization of livestock manure. The government will develop LPG and hybrid fishing vessels for fisheries and transform aquaculture and fish processing industries into low-carbon and smart ones.

⑥ (Waste) The government will complete the cycle for resource circulation in all economic and social sectors. 

The government will reduce waste during the entire process from production to consumption by introducing a rating system for resource efficiency and reducing disposable products. The government will introduce a public responsibility collection system where the local government collects recyclable waste from apartments and housing complexes. It will increase high-value-added recycling, such as recycling solar panels and electric vehicle batteries.

⑦ (Hydrogen) By establishing a hydrogen economy ecosystem, the government will leap forward as a leading country in clean hydrogen. 

The government will demonstrate key technologies, such as green hydrogen based on water electrolysis, and establish infrastructure, such as hydrogen liquefaction plants and hydrogen pipelines. At the same time, the government will diversify hydrogen mobility, including vehicles, ships, trams, and drones, and expand the scope of hydrogen utilization by building hydrogen clusters and cities.

⑧ (Carbon Sinks) The government will rediscover the value of forests, oceans, and wetlands as carbon sinks. 

The government will strengthen forests' absorption and storage capacity through programs including circulation-style forest management and managing ocean carbon sinks by restoring coastal wetlands and expanding maritime forests. In addition, the government will build new carbon sinks by creating urban forests and planting trees on unused land.

⑨ (CCUS) The government will create new industries for the future by building infrastructure and technological innovation for CCUS.

The government will enact a CCUS law containing the CCUS industry, safety, and certification standards. The government will begin CCS (Carbon Capture and Storage) demonstration and secure additional storage using the East Sea gas field. In addition, it will provide one-stop support from CCU technology development, testing, and commercialization.

⑩ (Overseas Carbon Offset Programs) The government will contribute to global emissions reduction efforts through overseas carbon offset projects. 

The government will establish a foundation for implementing overseas carbon offsets projects, such as approval, acquisition, and performance management. It will develop and implement sector-specific projects cooperating with priority partner countries (agreements already signed with Vietnam and Mongolia). At the same time, it will sign an agreement with more partner countries to broaden the reach of global efforts for emissions reduction.

<1-4. Policies to Strengthen the implementation foundation to transition to a carbon-neutral Society>

Along with GHG emissions reduction policies, 45 policy tasks across six sectors were designated to ensure a harmonious transition to carbon neutrality across all economic and social sectors and all walks of life. The details are as follows.

① (Climate Change Adaptation) In order to realize a sustainable society that overcomes changes and crises in health, agriculture, fisheries, and the natural environment caused by abnormal weather events, the government will expand adaptive infrastructure that can preemptively respond to such climate change.

The government will respond to extreme weather by strengthening three-dimensional monitoring systems using ground observation networks and satellites and improving flood forecasting systems. The government will establish a health and welfare safety net by reducing the burden on vulnerable groups (insulation improvement projects, goods support, etc.)

② (Green Growth) The government will develop key green technologies and discover and foster new green industries. It will achieve carbon neutrality and green growth that ensures the coexistence of the environment and growth through policy and private financial support.

Alongside developing 100 key Korean carbon-neutral technologies, the government will set up special zones for research and development as a carbon neutrality base. The government will also foster low-carbon materials, parts, equipment, and new energy industries, such as secondary batteries and semiconductors. Furthermore, it will boost green finance, such as sustainability-linked bonds.

③ (Just Transition) The government will support regions facing industry and employment risks due to the transition to carbon neutrality and establish a proactive support system for crisis-hit companies and workers.

At-risk regions will be designated as special zones for just transition and eligible for support, including consulting for business transition and human resource training. The government will develop measures to minimize losses for companies and employees affected by the industrial shift towards carbon neutrality, including minimizing company loss and worker job transition training.

④ (Local Government-led projects) The government will establish a bottom-up system for achieving carbon neutrality and green growth led by local governments, moving away from being led by the central government. 

The following measures will strengthen the capability and foothold of local governments for a transition to carbon neutrality: local governments establishing basic plans, increasing the number of support centers for a transition toward carbon neutrality, building carbon-neutral cities, and improving the accuracy of regional greenhouse gas emission statistics. Also, the government will establish communication and cooperation channels between the central and local governments to share and expand achievements.

⑤ (Training Human Resources and Raising Awareness) To prepare for the demand for specialized workforces due to the transition in industrial structure, the government will train talented individuals and enhance public awareness to encourage voluntary participation.

The government will operate academic departments and graduate schools specializing in carbon neutrality and support the training of specialized talented individuals for future technology based on industrial demand. In addition, the government will expand nationwide campaigns, including collaboration among the public, private entities, and civil society, and encourage participation in the "carbon neutrality action point" system.

⑥ (International Cooperation) The government will play a role as a global leader in transitioning to carbon neutrality and green growth through bilateral and multilateral cooperation, considering Korea's international standing and national interests. 

The government will actively participate in international organizations such as the UNFCCC and the G20 to proactively respond to the new global order and expand green ODA for the emissions reduction efforts of developing countries.

<1-5. Financial plans>

The government plans to allocate a budget of approximately KRW 89.9 trillion over the next five years (2023-2027) to ensure the effective implementation and achievement of the national plan's policy tasks. The budget for greenhouse gas reduction projects, such as developing key technologies to achieve carbon-neutrality (industry sector), zero-energy and green remodeling (construction sector), and the subsidy for electric and hydrogen vehicles (transportation sector) is expected to be KRW 54.6 trillion over the next five years. In addition, KRW 19.4 trillion will be allocated to climate change adaptation and KRW 6.5 trillion to green industry growth over the next five years, ensuring that carbon neutrality and green growth are seamlessly pursued throughout the country's economy and society. The government will provide as much support as possible.

On March 22, 2023, a public hearing was held and participated by officials from concerned ministries, including Kim Sang-hyup, the head of the Presidential Committee on Carbon Neutrality and Green Growth. The hearing was held to collect the opinions of the public. A question-and-answer session with the audience was held, along with in-depth panel discussions on the national plans by experts from industry, academia, and research institutes related to carbon neutrality and green growth. After the public hearing, the Committee made plans to conduct on-site discussions with various social groups, including young people (March 24) and civic groups (March 27), to gather enough opinions from the public. As follow-up measures, the Committee will supplement the draft of the national plan based on the opinions gathered during the discussions. After the Committee and the State Council deliberations, the final version will be ed and announced in April 2023.

In addition, as the basic plan is a proposal of mid- to long-term policy directions, the government plans to swiftly establish and implement detailed measures for each sector to increase the national plan's effectiveness and create tangible results.

Contact: Choi Jung-hwan, Senior Deputy Director

Climate Change Strategy Division / +82-(0)44-201-6647

Foreign Media Contact: Chun Minjo(Rachel)

+82-(0)44-201-6055 / rachelmchun@korea.kr