Mandatory Renewable Fuel Blending Ratio Raised to 3.5% Starting July

Amendment to the Enforcement Decree of the Renewable Energy Act Passed at the Cabinet Meeting

[Sejong=Asia Economy Reporter Kwon Haeyoung] The mandatory blending ratio of renewable energy fuels will be gradually increased from the current 3% to 3.5% starting this July, and further expanded step-by-step to 5% by 2030.

According to the Ministry of Trade, Industry and Energy on the 22nd, the amendment to the "Enforcement Decree of the Act on the Development, Use, and Promotion of New and Renewable Energy (hereinafter referred to as the New and Renewable Energy Act)" containing these details was reviewed and approved at the Cabinet meeting on the same day, and will be enforced from the 1st of next month.

This amendment aims to expand the use of renewable energy fuels. The key points are to gradually raise the mandatory blending ratio of renewable energy fuels in transportation fuels (diesel for automobiles) and to improve the criteria for calculating the mandatory volume.

Accordingly, the blending obligation ratio will increase from the current 3% to 3.5% starting in July, and will be raised by 0.5 percentage points every three years, reaching 5% by 2030.

The Ministry of Trade, Industry and Energy also changed the domestic sales volume standard applied to petroleum refiners for calculating the mandatory blending volume of renewable energy fuels from the previous "previous year" to the "current year," the same as petroleum importers and exporters. This change is expected to allow petroleum refiners to respond flexibly to market volatility such as sales volume fluctuations compared to the previous year and the decrease in diesel sales due to the expansion of eco-friendly vehicle distribution.

An official from the Ministry said, "According to this amendment, raising the biodiesel blending obligation ratio by 0.5% is expected to reduce about 330,000 tons of carbon dioxide annually and decrease emissions of air pollutants such as fine dust, thereby increasing public benefits."