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| (Provided by the Ministry of Trade, Industry and Energy) © News 1 |
The Ministry of Trade, Industry and Energy announced on the 31st that the legislation was announced from February 1st to March 15th of some amendments to the’Enforcement Decree of the New Energy and Renewable Energy Development, Use, and Distribution Promotion Act’.
This amendment will step up the ratio of the mandatory mixing of the RFS (Renewable Fuel Standard, mandated to mix biodiesel at a certain ratio or higher in transportation fuels), which is being operated to expand the use of renewable energy fuels, and mixed them by year. The main focus is on improving the domestic sales volume calculation standards for the calculation of the mandatory volume.
First of all, the ratio of the mixed obligation, which is currently 3%, will be raised to 3.5% from July this year, and then increased by 0.5%p every three years to reach 5.0% in 2030.
According to the results of the research service conducted by the government, raising the mixing ratio to 5% does not affect vehicle performance above the legal standard (-18℃).
Particularly, although the cost of fulfilling the obligations of the combined obligor increases, it is analyzed that it is economically feasible when comprehensively considering the national environmental benefits such as the effect of creating new and renewable markets and reducing greenhouse gases.
The amendment also included a change in the standard of domestic sales volume of oil refiners for calculating annual blending obligations from the current’previous year’ to’the year’, as did the oil exporters and importers.
Through this, it is intended that petroleum refiners can respond flexibly to market fluctuations, such as the possibility of fluctuations in sales volume compared to the previous year (such as whether or not to make a bid for a discounted main factor) and the prospect of a decrease in diesel sales due to the expansion of eco-friendly vehicles.
Meanwhile, the Ministry of Industry is reviewing not only this amendment, but also the introduction of a flexible performance system recommended by the oil refining industry (allowing deposits for excess amounts of mixed obligations and delays for insufficient amounts).
To this end, it is a policy to actively respond to allow the National Assembly to pass the amendment to the new and renewable law proposed last year, and to stipulate a specific flexibility ratio in the enforcement decree when the law is passed.
The Ministry of Industry is planning to complete the revision of the enforcement decree by the end of June and implement it from July 1st. However, the change in the calculation standard for domestic sales will take effect from next year.