Unification of CCUS-Related Regulations Previously Scattered Across Individual Laws
Promotion of Related Industries Expected
The "Act on Carbon Dioxide Capture, Transport, Storage, and Utilization," enacted last February, will be fully enforced starting from the 7th. The unification of CCUS-related regulations, which were scattered across more than 40 individual laws, is expected to boost the promotion of related industries and support for companies.
According to the Ministry of Trade, Industry and Energy and other related ministries on the 6th, the Act on Carbon Dioxide Storage and Utilization systematically stipulates processes essential for greenhouse gas reduction, such as the selection and announcement procedures for onshore or offshore storage candidate sites, storage project permits, and monitoring systems for securing and operating carbon dioxide storage facilities.
To establish a growth foundation for the CCUS industry, the act also includes various corporate support measures such as certification and support for specialized carbon dioxide utilization companies, technology and product certification, demonstration and commercialization support, and subsidies and loans for project costs. Additionally, it specifies the designation and support system for CCUS cluster complexes to revitalize the industrial ecosystem, as well as the basis for establishing a CCUS Promotion Center.
Major advanced countries such as the United States and the European Union (EU) recognize CCUS technology as a key means to achieve carbon neutrality and are enacting and operating laws to foster it as a new industry. According to the Korea Institute of Energy Technology, the global CCUS market size is expected to grow more than twice from $1.6157 billion in 2020 to $3.5423 billion this year.
Choi Yeon-woo, Director of Energy Policy at the Ministry of Trade, Industry and Energy, stated, "With the enforcement of the Act on Carbon Dioxide Storage and Utilization, the legal basis for administrative and financial support related to CCUS and the implementation of the 2030 national greenhouse gas reduction target has been established," adding, "We will also ensure that the basic plan to support this is established without delay."
Oh Haeng-rok, Director of Marine Environment Policy at the Ministry of Oceans and Fisheries, said, "Captured carbon dioxide is highly likely to be stored under the seabed," and added, "We will expedite the selection of storage candidate sites to contribute to achieving the 2030 NDC."
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