The government plans to use property and automobile taxes to reduce greenhouse gas emissions and promote green growth.

It will also push for a "cap-and-trade" legislation and provide support for 10 key green technologies including carbon capture and storage, a smart grid and next-generation batteries.

Policymakers yesterday outlined this year's priority measures to fight climate change during a meeting of the Presidential Committee on Green Growth attended by President Lee Myung-bak.

Korea, Asia's fourth-largest energy consumer, last year set an ambitious goal of cutting greenhouse gas emissions by 30 percent below expected levels in 2020. It also established a comprehensive act on green growth to meet the emission target and promote environment-friendly investment and development.

"We prepared for a variety of measures for green growth last year. This year we will put those plans in motion and yield results," Kim Hyung-kook, committee chairman, told reporters.

The Ministry of Public Administration and Security said it will consider linking property tax rates for housing to the amount of energy used.

"The government will raise tax rates for owners of homes that consume excessively high amount of energy while applying lower rates for homes that consume less," the ministry said.

Acquisition and registration taxes will be cut by 5-15 percent for homes built or expanded in a way to improve energy efficiency.

The standard for vehicle taxes will be changed from the current engine displacement to fuel efficiency or carbon emissions, the ministry added.

The central government will subsidize local administrative units for reduction of acquisition and registration taxes on hybrid vehicles.

Environmental regulations on new buildings will be tightened and low-rate loans will become available for energy-saving housing. Regional government facilities will be required to reduce energy consumption by 10 percent, the ministry said.

During the meeting, President Lee chided some local governments for constructing administrative buildings that use excessively high amounts of energy.

"Local government chiefs who lack awareness (of the environment) cannot guide citizens," he said during the meeting.

The presidential committee selected 10 green technologies to promote as new growth engine businesses this year.

They include carbon capture and storage, a method of cutting the amount of carbon dioxide released into the atmosphere. The technology captures CO2 from the exhaust gases of power plants and stores it underground.

The government will also promote a smart grid system to save electricity use. It enables homes and factories to use electricity during off-peak hours through a two-way communication between power suppliers and consumers. Korea established a major test bed facility for the smart grid system on Jeju Island last year.

Other selected technologies include next generation rechargeable batteries, light-emitting diodes, green personal computers, high-efficiency solar batteries, green cars, advanced light-water nuclear reactors, fuel cells, and high-tech water treatment systems.

The committee also said the government will push for the legislation of "cap-and-trade," an emissions trading program, by the end of the year.

It sets limits on greenhouse gas emissions for companies and allows to trade permits for emissions. The government plans to introduce the system next year after discussions with businesses and related institutions.

A 100 billion won investment fund will be established to back the government's plan to nurture 1,000 green technology venture firms by 2013.

The government will encourage high energy-consuming industries such as steel and shipbuilding to use information technologies to boost energy efficiency.

It will promote the use of hybrid cars and other green transport means in designated high traffic congestion sections of roads.

By 2012, the government will introduce 28,000 more environment-friendly buses and provide incentives to reduce food waste by 20 percent, the committee said.

The "Me First" campaign aiming to spread the green lifestyle will be conducted nationwide.

The nation will step up efforts to help poor countries to develop clean water resources and reduce carbon emissions and will push for a joint study with the Paris-based Organization for Economic Cooperation and Development on green-growth strategy.

President Lee set low-carbon green growth as the new national vision in 2008. He signed the Basic Act on Low Carbon Green Growth last month.

The law mandates the government to establish a national strategy for green growth and set national and corporate targets for carbon emissions

The law provides legal grounds for state investment in, and support for, the development of renewable energies and environmentally-friendly technologies.

It calls on the government to promote financing and tax reforms to draw more investment in green industries. The government is also required to push for measures to reduce energy use and dependence on fossil fuel energy in transportation, automobiles, construction, electricity and everyday life.

The government has devised a five-year plan under which the nation will invest 2 percent of gross domestic product annually into research and development on new green technologies and infrastructure.

In November 2009, the nation announced that it would aim at a 30 percent cut from its forecast greenhouse gas emissions in 2020, equivalent to a reduction of 4 percent from 2005 levels.

The government plans to establish the Global Green Growth Institute in the first half of this year to help countries share their experiences and know-how to promote green growth and fight global warming.

The Korea Herald  Feb.4,2010