Korea to Enhance Auto Energy Efficiency
The government will help automakers enhance energy efficiency in cars and offer incentives for businesses that save energy, officials said yesterday.
To achieve its goals, the government will devise policies to cut energy use in both the public and private sectors and inject state funds to develop energy efficiency technology.
These plans were highlighted at a meeting President Lee Myung-bak chaired at Cheong Wa Dae, officials at the Ministry of Knowledge Economy said.
Under the plans, the government will invest 150 billion won ($120 million) for R&D activities on fuel efficiency improvement for the next five years and 550-720 billion won to automakers and auto parts makers.
Local cars are currently about 70 percent as fuel efficient as those made in Japan, officials noted. An average Korean car can go about 11.2 kilometers per liter of fuel, compared with 16.0 km per liter for Japanese vehicles, they added. The United States aims to improve fuel efficiency to 16.6 kilometers per liter of fuel, with Japan pushing for 16.8 kilometers starting in 2016, they added.
"The country needs to raise fuel efficiency of locally produced vehicles close to the standards set by governments in the United States and Japan," Kim Young-hak, second vice knowledge economy minister, told reporters.
"The plan will also help local carmakers export their products to overseas markets (that require higher fuel efficiency than now)," he said.
The government will also implement measures for businesses and public corporations to join the state-led energy-saving campaign.
The ministry will discuss with the Finance Ministry whether to levy consumption tax on energy-hungry products and offer tax incentives for businesses operating low energy facilities.
Officials also said the government would set aside about 1.6 trillion won to improve the energy efficiency of consumer and industrial products such as boilers and electronic motors.
The government is considering asking public companies to use only energy-efficient products. It will also ask private firms and big buildings to voluntarily set energy-saving goal.
The government will raise the price of electricity and gas supplied to homes.
"To reduce energy use as a whole, suppliers have to invest in developing renewable energy technology, but consumers also have to bear inconvenience to save energy. The latter is more convenient and costs less," Kim said.
The official added that the government was considering adopting daylight saving system during the summer months.
The government announced the package of measures as the country's energy consumption has been rising in recent years.
Energy consumption by households and the transportation sector gained 2.73 percent from 1997 to 2007 while Japan and Germany saw increases of 0.05 percent and 0.04 percent, respectively.
The government also expects international oil prices would rise sharply.
"This is a comprehensive and preemptive measure to save energy in the face of a rising crude oil price by imposing effective rules to control market demand," the vice minister said.
The price per barrel of Dubai crude, Korea's benchmark, reached $66.3 on Monday, compared with the average $57.9 per barrel recorded in May.
Korea relies heavily on imported fuel, which makes the country more vulnerable to increases in crude oil prices.
(christory@heraldm.com)
By Cho Chung-un
Quoted from: The Korea Herald
To achieve its goals, the government will devise policies to cut energy use in both the public and private sectors and inject state funds to develop energy efficiency technology.
These plans were highlighted at a meeting President Lee Myung-bak chaired at Cheong Wa Dae, officials at the Ministry of Knowledge Economy said.
Under the plans, the government will invest 150 billion won ($120 million) for R&D activities on fuel efficiency improvement for the next five years and 550-720 billion won to automakers and auto parts makers.
Local cars are currently about 70 percent as fuel efficient as those made in Japan, officials noted. An average Korean car can go about 11.2 kilometers per liter of fuel, compared with 16.0 km per liter for Japanese vehicles, they added. The United States aims to improve fuel efficiency to 16.6 kilometers per liter of fuel, with Japan pushing for 16.8 kilometers starting in 2016, they added.
"The country needs to raise fuel efficiency of locally produced vehicles close to the standards set by governments in the United States and Japan," Kim Young-hak, second vice knowledge economy minister, told reporters.
"The plan will also help local carmakers export their products to overseas markets (that require higher fuel efficiency than now)," he said.
The government will also implement measures for businesses and public corporations to join the state-led energy-saving campaign.
The ministry will discuss with the Finance Ministry whether to levy consumption tax on energy-hungry products and offer tax incentives for businesses operating low energy facilities.
Officials also said the government would set aside about 1.6 trillion won to improve the energy efficiency of consumer and industrial products such as boilers and electronic motors.
The government is considering asking public companies to use only energy-efficient products. It will also ask private firms and big buildings to voluntarily set energy-saving goal.
The government will raise the price of electricity and gas supplied to homes.
"To reduce energy use as a whole, suppliers have to invest in developing renewable energy technology, but consumers also have to bear inconvenience to save energy. The latter is more convenient and costs less," Kim said.
The official added that the government was considering adopting daylight saving system during the summer months.
The government announced the package of measures as the country's energy consumption has been rising in recent years.
Energy consumption by households and the transportation sector gained 2.73 percent from 1997 to 2007 while Japan and Germany saw increases of 0.05 percent and 0.04 percent, respectively.
The government also expects international oil prices would rise sharply.
"This is a comprehensive and preemptive measure to save energy in the face of a rising crude oil price by imposing effective rules to control market demand," the vice minister said.
The price per barrel of Dubai crude, Korea's benchmark, reached $66.3 on Monday, compared with the average $57.9 per barrel recorded in May.
Korea relies heavily on imported fuel, which makes the country more vulnerable to increases in crude oil prices.
(christory@heraldm.com)
By Cho Chung-un
Quoted from: The Korea Herald
