[Yoon Administration Economy] Strengthening Emissions Trading System... Achieving NDC through Nuclear Power

Revisiting Total Emission Allowances... Basic Green Growth Plan to be Established by March Next Year
Increasing Nuclear Power Share to Achieve 2030 NDC... Policy to Readjust Energy Mix
Expanding Carbon Neutral Investments through Financial Support... ESG Disclosure System Overhaul

A view of Shin Hanul Units 1 and 2 located in Uljin, Gyeongbuk.
Photo by Asia Economy DB

[Asia Economy Sejong=Reporter Lee Jun-hyung] The government is set to review the total emission allowances and allocation methods to strengthen the effectiveness of the emissions trading system. It also unveiled plans to increase the utilization of nuclear power plants to achieve the '2030 National Greenhouse Gas Reduction Target.'

The government announced these details in the 'New Government Economic Policy Direction' on the 16th.

First, the government will prepare an NDC achievement plan, including sector- and year-specific reduction pathways, after communication with the industry and stakeholders and cost analysis. Accordingly, the government will establish the 'National Carbon Neutral Green Growth Basic Plan' by March next year. The basic plan is expected to include sector- and year-specific measures to achieve the mid- to long-term NDC reduction targets as well as climate change adaptation measures.

The effectiveness of the carbon emissions trading system will also be enhanced. The government plans to consider expanding paid allocation of emission allowances and strengthening allocation based on emission efficiency (BM) standards.

Additionally, to implement the NDC, the government intends to increase the utilization of nuclear power plants. The plan includes resuming construction of Shin Hanul Units 3 and 4 and extending the operation of existing nuclear plants to raise the share of nuclear power generation and readjust the energy mix. The government’s stance is to continue promoting renewable energy based on community acceptance while adjusting its share to a reasonable level.

To expand corporate carbon-neutral investments, related support will also be increased. The government will strengthen fiscal and financial support for carbon-neutral investments and increase support methods linked to greenhouse gas reduction performance. As part of enhancing support for carbon-neutral investments, the government plans to expand performance-linked project methods that support follow-up projects according to greenhouse gas reduction targets.

The scope of recipients for carbon-neutral practice points will also be expanded. Carbon-neutral practice points are incentives provided to the general public based on their usage of eco-friendly activities by private companies. The government is considering expanding the recipients of carbon-neutral practice points from the existing six activities, including electronic receipts, to areas such as resource circulation and transportation.

The establishment of a circular economy system, including recycling of waste plastics, will also be accelerated. The government plans to develop innovative models related to waste plastic recycling within the second half of this year and prepare to revitalize the used electric vehicle battery industry.

To foster a private-sector-led ESG (Environmental, Social, and Governance) ecosystem, support for related infrastructure will be strengthened. The government will first announce the 'ESG Infrastructure Advancement Plan' next month, which includes seven key tasks such as ESG disclosure system refinement, support for small and medium-sized enterprises and mid-sized companies, and ESG bond issuance. Considering that global ESG disclosures are being standardized, the domestic disclosure system will also be refined. To improve accessibility to ESG-related information, a comprehensive ESG information platform will be established.