South Korea: Rational Energy Use Act

This leglislation outlines the general provisions for securing energy supplies and stabalizing energy demands for the sustainable development of Korea. It requires the drawing up of a long term National Energy Plan every five years, Regional energy plans, and emergency plans. It allows the government to determine energy rations during a supply crisis, to proscribe energy saving measures or equipment as necessary, to order energy audits, or to instate energy consumption limitations on machinery and equipment and require them to be labeled. The legislation states the government’s committment to the development of new energy technologies - promoting institutions of learning and research in that endeavor. It also includes the Voluntary Agreements, a crucial part of the government’s GHG reduction strategy. This measure involves 5yr agreements negotiated between the government and the participating company, wherein the latter agrees to lower its energy consumption and its emission of greenhouse gases. The company sets an appropriate goal and the government provides financing, tax support and other incentives to encourage and support the company’s efforts. As of 2004, a total of 1,021 companies have participated in the agreement, covering the fields of steel, chemicals, textiles, paper, ceramics and the food industry. The companies that have joined the agreement are committed to reducing their CO2 emissions by 8,647 million tonnes of carbon (TC) in five years.

Date Implemented: 1995

Status: In Force; Framework Policy

Funding Information: As of 2004, the program has required 3,857 billion won of investment.

Targets: 1,225 companies are expected to join this program by 200

References: National Communication to the UNFCCC

http://www.unescap.org/esd/energy/publications/compend/ceccpart4chapter8... http://www.kemco.or.kr/english/sub03VA.asp; www.kemco.or.kr/kemcoplaza/pds_eng/pdsfile/VAbrochure.doc