Mandatory Greenhouse Gas Management for Medium- and Large-sized Commercial Vehicles… 30% Reduction Targeted by 2030

In order to achieve the national greenhouse gas reduction target (NDC) by 2030, the government will strengthen greenhouse gas emissions and fuel efficiency management standards for automobile manufacturers. Mandatory standards will be applied to medium- and large-sized commercial vehicles, which were previously subject to voluntary reduction, and greenhouse gas emission limits for small vehicles will also be significantly tightened to meet international levels.

On July 14, the Ministry of Climate, Energy and Environment announced that it has prepared amendments to the "Guidelines for Application and Management of Average Energy Consumption Efficiency Standards and Greenhouse Gas Standards for Medium- and Large-sized Commercial Vehicles" and the "Notification on Average Energy Consumption Efficiency Standards, Greenhouse Gas Emission Limits for Automobiles, and the Application and Management of Such Standards." These amendments will be open for public consultation for 60 days.

The amendments aim to reduce greenhouse gas emissions from the transportation sector to 61 million tons by 2030 and will apply to both automobile manufacturers and importers. Starting in 2027, medium- and large-sized commercial vehicles will be incorporated into a mandatory reduction system by vehicle type. The measure will be gradually expanded: beginning with large cargo trucks and tractors, including medium- and large-sized buses in 2028, and by 2030 extending to medium cargo trucks and dump trucks. By 2030, greenhouse gas emissions must be reduced by 30% compared to the average levels of 2021–2022.

Manufacturers who fail to meet the standards will be subject to penalties. However, to consider the initial burden on the industry, the penalty level will start low, and it will be gradually strengthened after 2031, once the system is firmly established.

On the first day of the Lunar New Year holiday, the area near Jameon IC on the Gyeongbu Expressway in Seoul is crowded with southbound vehicles (on the right side) heading out of Seoul on the 14th. Photo by Yonhap News

The super-credit system, which rewards sales of electric and hydrogen vehicles, will be extended until 2029; hydrogen internal combustion engine vehicles will also be eligible for incentives. The greenhouse gas emission limit for passenger vehicles with up to 10 seats will be lowered from 70g/km to 54g/km by 2030; for small trucks and 11–15 seat buses, the limit will drop from 146g/km to 98g/km.

Additionally, the classification of manufacturers will be subdivided from three to four tiers, and the government will pilot indirect reduction methods such as the use of renewable energy to support industry compliance. The Ministry plans to gather input from industry, academia, and civil society until September 14 and finalize the plan thereafter.

Kim Jinsik, Director-General of the Air Quality Bureau at the Ministry, stated, "The greenhouse gas and fuel efficiency management system for automobiles is a key institutional foundation for decarbonizing the transport sector. We will support both climate crisis response and secure the future competitiveness of the domestic automotive industry."

This content was produced with the assistance of AI translation services.