On March 2, 2021, the Ministry of Environment (the “MOE”) announced the “2021 Carbon Neutrality Implementation Plan” in an effort to achieve carbon neutrality by 2050.  As this implementation plan presents the directions and trends of the government’s policy goals, we have summarized the key points of the announcement as follows. 

1.   Preparation of Foundation for Implementation of Carbon Neutrality
 

(1)   Establishment of a system to achieve carbon neutrality by 2050

On October 28, 2020, the MOE, as the government agency responsible for responding to climate change, unveiled its plans to meet the Moon Administration’s declaration of achieving carbon neutrality by 2050.

More specifically, the MOE plans to (i) analyze how much greenhouse gas (“GHG”) emissions can be potentially reduced and develop various GHG reduction scenarios for achieving carbon neutrality by 2050 with the “2050 Carbon Neutrality Committee” at the helm by June 2021, and (ii) under such scenarios, establish key implementation plans for each sector with the relevant government ministries.  By the first half of 2021, the MOE aims to develop plans for climate technology R&D, green finance, legislation and amendment to relevant laws, and implementation and support of carbon neutrality in local communities.  By the second half of 2021, the MOE plans to prepare an innovative strategy for achieving carbon-neutrality in the energy sector, a strategy driving industrial transformation for carbon neutrality, a strategy for carbon neutrality in the transportation sector and a roadmap for innovative K-circular economy. 
 

(2)   Increase of the national GHG reduction target 

The MOE plans to increase the 2030 Nationally Determined Contribution (i.e., national GHG reduction target) (the current target: at least 24.4% reduction from the 2017 level).  Under the scenario to achieve carbon neutrality by 2050, the MOE aims to determine how much to increase the target through active discussion with the relevant ministries and public, and submit the revised target to the UN within President Moon’s presidential term. 

2.   Promotion of Carbon Neutrality by Sector and Reinforcement of Institutional Foundation 
 

(1)   Expansion of renewable energy supply through vitalization of floating solar power projects, hydrothermal energy projects, and offshore wind power projects

The MOE announced that it plans to increase the supply of renewable energy by utilizing environmental resources to achieve carbon neutrality by 2050. 

Specifically, the MOE plans to:

1. install floating solar power plants at five dams, including Hapcheon Dam (with the target to supply 2.1GW by 2030), and run a pilot project for development of hydrothermal energy per each type of water (with the target to supply 1GW by 2040); 

2. streamline the entire process of environmental impact assessment to promote offshore wind power projects;

3. organize an environmental assessment team exclusively in charge of wind power projects within the MOE to provide assessment services throughout the entire process of wind power project development; and 

4. support installation of renewable energy facilities at environmental infrastructure facilities such as water purification facilities, expand production of biogas by utilizing organic waste resources such as food and livestock excreta, and supply hydrogen generated therefrom.
    

(2)   Establishment of long-term strategies in the transportation sector through pollution-free vehicles to help reach carbon neutrality by 2050

The MOE announced its plan to establish long-term strategies for the transportation sector: reaching an era of 300,000 pollution-free vehicles and building charging infrastructures for those vehicles.

Specifically, the MOE plans to: 

1. reach an era of 300,000 pollution-free vehicles by increasing the target of supplying low-pollution vehicles from 15% in 2020 to 18% in 2021, and establishing a requirement for the public sector to purchase pollution-free vehicles (80%)

2. build more than 180 hydrogen charging stations within this year by promulgating special regulations to facilitate identifying potential sites and simplifying associated permit processes; and

3. develop a transition plan to future vehicles by end of this year. 
    

(3)   Reinforcement of management of the entire waste cycle and establishment of a roadmap for transition to a circular economy society by 2050

The MOE plans to prepare a step-by-step plan for transitioning to a circular economy society by 2050, and strengthen its management of the entire waste cycle (i.e., from reduction in production and consumption, to expansion of recycling, and to prohibition of direct landfill).

Specifically, the MOE aims to:

1. set a waste generation reduction target (based on the ratio of production volume or sales to generated waste volume) for businesses that generate a large amount of wastes, and reinforce the regulations on the use of disposable products;

2. facilitate production of high quality raw materials by requiring PET bottles to be generated-sorted-recycled, separately, and establish step-by-step implementation measures to expand chemical recycling such as materialization of waste plastics through thermal decomposition by the first half of 2021;

3. clearly set forth the liability principle that wastes must be treated where they were generated in the Wastes Control Act, and introduce grounds for “charges for bringing in wastes” for those wastes to be disposed by other local governments by 2021 (to be effective by 2022);

4. prepare a proposed amendment to the Enforcement Rule of the Wastes Control Act to prohibit direct landfill of household wastes by 2030, and establish an implementation plan to expand pre-treatment facilities by local governments within this year; and

5. develop an “innovative roadmap for circular economy” to realize circular economy across society within this year. 

3.   Ten Key Action Plans for Achieving Carbon Neutrality by 2050

The basic direction, policy and timeline of the MOE’s Ten Key Action Plans for Achieving Carbon Neutrality by 2050 are summarized as follows: