(1) Reasons for Proposal

This Partial Amendment aims to define matters regarding annual average energy consumption efficiency standards, greenhouse gas permissible emission levels, with which auto makers must comply from 2021 to 2030 under the Framework Act on Low Carbon, Green Growth, and the application and management of the foregoing standards.

(2) Major Provisions

A. Define annual average energy consumption efficiency standards and greenhouse gas permissible emission levels, with which auto makers must comply (Article 4 [attached Table 1])

B. Determine classification standards and the easing of standards for small auto makers, which will be applied from 2021 to 2030 (Article 6)

C. Set the performance calculation method for low-carbon and eco-friendly vehicles such as electric vehicles, hybrid vehicles, and subcompact vehicles (Article 9)

D. Extend the surplus carry-over and tradable period from 3 years to 5 years, and for auto makers which have recorded a net loss in the three consecutive preceding business years, extend the deficit repayment period from 3 years to 4 years (Articles 10 and 11)

E. Require the Minister of Environment to conduct an interim review by 2025 about the applicability of standards to 2026 and afterwards by comprehensively considering trends in the international community, the achievement status of national greenhouse gas emission reduction goals, and conditions in the automotive industry in consultation with the Minister of Trade, Industry and Energy (Article 13)