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Press Release
Strictly under embargo until 20.00 KST on Tuesday 6 April
Korea Establishes Institutional Framework for the Realization of Green Growth
- Enactment of the Enforcement Decree of the Framework Act on Low Carbon, Green Growth -
The Korean government adopted the Enforcement Decree of the Framework Act on Low Carbon, Green Growth, which will be effective on April 14th along with the Framework Act on Low Carbon, Green Growth during the 15th Cabinet meeting on April 6th.
The Enforcement Decree stipulates the necessary elements for the mandates and their implementation in the Framework Act on Low Carbon, Green Growth that will serve as a fundamental legal institution to break the country’s dependence on foreign oil and reduce global warming pollution. The government’s action marks a significant step in fulfilling Korea’s commitment to green growth, and provides a pragmatic example of how our economic and environmental priorities can go hand-in-hand.
Considering potential impacts of the Enforcement Decree on each sector, the government has gone through various procedures to embrace opinions from stakeholders and in-depth consultations among relevant ministries.
The Enforcement Decree consists of 7 chapters and 44 articles: (1) General Provisions, (2) The National Strategy for Low Carbon, Green Growth, (3) The Presidential Committee on Green Growth, (4) Promotion of Green Growth, (5) Realization of Low Carbon Society, (6) Green Life and Sustainable Development, and (7) The Supplementary Rules.
The specific main contents are as follows:
First, the Enforcement Decree establishes the details and procedures of supporting green enterprises to induce their investment and employment. Articles such as the Green Certificate Program (Article 19), the Qualification for Mutual Funds for Green Industry (Article 17), and Promotion of the Public Procurement of Green Products (Article 20) are included for this purpose.
Second, the Enforcement Decree sets up a Greenhouse Gas Management System to implement the national goal of GHG emissions reduction (30 % below Business as Usual levels by 2020); the Ministry of Environment will be the representative agency of the nation in overall GHG management coordination. The Ministry of Environment will instate an Integrative GHG Information Center and provide support for the goal-setting process for each sector, while the sectoral statistics are produced by each relevant ministry.
Third, the Government shall establish an Emissions Target Management Scheme[1] for each industry and the scheme will be managed through a single window system to avoid any excess burden on businesses (Article 30 ? 35). In addition, the competent authority will take charge of the whole procedures from designation through assessment, so that the controlled entity will need to deal with one ministry regarding the emissions target. By industries, competent authorities will be as following:
Fourth, the Enforcement Decree stipulates the national GHG reduction goal to reaffirm Korea’s commitment to combating climate change and making a low carbon transition (Article 25).
Fifth, the Enforcement Decree requires a review of sectoral emissions reduction goals by the Economic Policy Steering Committee in order to take into account their potential macro-economic effects (Article 25).
Sixth, the Enforcement Decree adopts a joint rule-making scheme for automobiles. The automobile industry can choose either of two standards; the fuel efficiency standard or the GHG emissions standard. Ministry of Environment will announce the standards after consultation with Ministry of Knowledge Economy (Article 37).
Seventh, the information of the statements is open to the public. The Enforcement Decree provides an institutional device to protect business secrets. Companies can request nondisclosure of their statements containing business secrets.
The article also stipulates that the information requested by ministries and public institutions shall be provided, only when approved by the Presidential Committee on Green Growth (Article 35).
The Korean government will deliberate on further measures to relieve the burdens of industries in the future. Measures include granting a grace period prior to the implementation of the Emissions Target Management Scheme.
The full text of the Framework Act on Green Growth in English is attached hereto and the text of the Enforcement Decree will be made available on April 14th by the Prime Minister’s Office and the Presidential Committee on Green Growth.
For more information regarding this release, please contact Ms. Jinyoung Kim, of Internatioanl Cooperation Team, Presidential Committee on Green Growth (tel. 02-735-2539, kjinyn@korea.kr).
[1] The Government shall establish and manage targets for each entity that emits greenhouse gases more than 25,000tCO2/year (as of 2010). The controlled entity shall observe targets and report its performance to the Government.
