Reasons for Proposal
To respond to climate change, a global threat, and curb particulate matter emissions, which pose a serious threat to Korean people’s health, it is necessary to discourage the use of fossil fuels and promote the use of low carbon clean energy as an alternative source of energy.
The rapid expansion of renewable energy, a type of low carbon clean energy, may undermine power supply stability since it is intermittent. If fossil fuels are used as a supplement source of energy, it would be difficult to reach carbon emissions goals, increase electricity bills due to expensive power generation unit prices, and decrease Korea’s industrial competitiveness, which may make it difficult to seek sustainable development in the national economy.
In this regard, the Framework Act on Low Carbon, Green Growth requires the establishment of a comprehensive strategy for national development to resolve the problems of climate change, energy and resources, expand growth engines, enhance enterprises' competitiveness, efficiently utilize national land, and develop a comfortable environment.
To effectively and systematically implement a strategy for national development, it is necessary to prepare a legal basis for the establishment of policies that support the dissemination and use of low carbon clean energy sources that consider Korea’s natural environments and technological conditions.
In this regard, to establish and implement the policies that support the dissemination and use of low carbon clean energy, this Act aims to prepare the basis for imposing charges for carbon dioxide emissions to curb such emissions and for establishing the Low Carbon Clean Energy Use Promotion Support Fund.
Details
A. Define the purpose of this Act as supporting the dissemination and use of low carbon clean energy to significantly reduce greenhouse gas and particulate matter emissions and effectively respond to climate change, managing and preserving the air to ensure people lead a comfortable and healthy life, stabilizing power supply and demand, increasing energy independence, and contributing to energy well-being (Article 1).
B. Define low carbon clean energy, which is eligible for support and promotion (Article 2).
C. Prepare basic principles to promote the use of low carbon clean energy (Article 3).
D. Require the Minister of Trade, Industry and Energy to establish a national low carbon clean energy use promotion strategy every 5 years that specifies policy goals and the methods to achieve them and key tasks to promote the use of low carbon clean energy (Article 9).
E. Impose obligations on power generating business entities to supply low carbon clean energy at least for a certain percentage of power generation (Article 12).
F. Issue a certificate to low carbon clean energy suppliers which proves that they have provided low carbon clean energy and allow those with the supply certificate to trade the certificate in the market established by the supply certifying institution (Article 13).
G. Establish a Low Carbon Clean Energy Use Promotion Committee to review major policies, plans, and their implementation to promote and support the use of low carbon clean energy (Article 14).
H. Establish a Low Carbon Clean Energy Use Promotion Support Fund to secure funding sources required to support the use of low carbon clean energy (Article 18).
I. Allow the fund to be used in launching support projects for renewable power generating business entities, power system improvement projects, business shifting and restructuring for fossil fuel power generating business entities, and low carbon clean energy innovation tech R&D projects to promote the use of low carbon clean energy (Article 21).
J. Require power generating business entities to pay charges in proportion to carbon dioxide emissions produced from the operation of facilities (Article 23).
K. Allow for reorganizing or creating a tax or levy system to expand the dissemination and use of low carbon clean energy and support the exports of low carbon clean energy technologies and products (Article 24).
L. Require measures for advances in research and scientific technologies to promote the use of low carbon clean energy and expand its exports (Article 25).
Notes
This Act rests on the premise that the Partial Amendment to the Framework Act on the Management of Charges (Bill no. 8490) and the Partial Amendment to the National Finance Act (Bill no. 8489), represented and proposed by National Assembly member Kim Jung-jae, are passed. If the bills are not passed or are passed with modifications, this Act must be adjusted accordingly.
