South Korea announces draft amendments to tighten motor vehicle GHG emission limits and related standards to meet the 2030 NDC

On July 14, 2026, South Korea’s Ministry of Climate, Energy and Environment (MCEE) announced proposed amendments to the Public Notice on Standards for Average Energy Consumption Efficiency and Permissible Greenhouse Gas Emission Levels from Motor Vehicles and the Application and Management of Such Standards, which would tighten motor vehicle greenhouse gas (GHG) emission standards, along with proposed amendments to the Enforcement Decree and Enforcement Rules of the Clean Air Conservation Act, which would provide the statutory basis for the revised standards. These amendments are intended to help meet the transport-sector targets under Korea’s 2030 Nationally Determined Contribution (NDC) by tightening the permissible GHG emission levels and average fuel economy standards applicable to motor vehicle manufacturers, including importers, and establishing provisions for imposing penalty surcharges in cases of non-compliance.

Key details of the draft amendments

1. Tightened standards and greater compliance flexibility for light-duty vehicles (passenger cars, light-duty cargo vehicles, etc.)

For light-duty vehicles, the phased standards currently prescribed through 2030 would be further tightened, while flexible compliance mechanisms, including incentives and special rules, would be enhanced in consideration of manufacturers’ ability to comply.

Tightening of the 2030 standards:

The permissible GHG emission standard for passenger cars and passenger vans with a seating capacity of 10 or fewer persons would be lowered from the current 70 g/km to 54 g/km. The corresponding standard for light-duty cargo vehicles and passenger vans with a seating capacity of 11 to 15 persons would be lowered from the current 146 g/km to 98 g/km. The annual standards for 2027 through 2030 would be adjusted as shown below.

(Unit: g/km)

Further subdivision of manufacturer categories by sales volume (new):

Under the current framework, manufacturers are classified into three categories—General, Small-sized, and Individual—for the purpose of applying relaxed standards based on sales volume. The proposed amendment would introduce a new category for Medium- sized manufacturers, defined as manufacturers whose domestic vehicle sales in the reference year do not exceed 50,000 units, thereby expanding the classification from three tiers to four.

Recognition of indirect reductions (new):

A pilot “indirect reduction” mechanism would be introduced. Where a manufacturer directly generates or uses renewable energy at a domestic place of business, the resulting reduction could be deducted from its GHG emissions for compliance purposes, up to 5% of the applicable standard for the relevant year.

Transitional measures, including supercredits:

The expiration of additional sales credits (supercredits) for electric vehicles (EVs), fuel cell electric vehicles (FCEVs), and hybrid electric vehicles (HEVs) would be extended from 2026 to 2029, although the credits would be phased down. In addition, the proposed amendment to the Enforcement Rules would establish a legal basis for extending the maximum period for making up a compliance shortfall from four years to five years where approved by the Minister of Climate, Energy and Environment.

2. Introduction of reduction obligations and penalty surcharges for medium- and heavy-duty commercial vehicles (from 2027)

Under the existing framework, reduction of GHG from medium- and heavy-duty commercial vehicles has been implemented on a voluntary basis. Under the proposed amendments, legally binding reduction requirements would be introduced in stages beginning in 2027.

Reduction target through 2030:

Manufacturers would be required to reduce emissions by 30% from the baseline-year level, calculated as the average for 2021 and 2022, by 2030.

Vehicles covered and phased implementation schedule

Detailed method for calculating penalty surcharges:

Under the proposed amendment to the Enforcement Decree of the Clean Air Conservation Act (MCEE Notice No. 2026-684), new penalty surcharge rates would be established for manufacturers that fail, from 2027 onward, to meet the standards applicable to medium- and heavy-duty commercial vehicles, including buses with a seating capacity of 16 or more persons.

[Penalty surcharge rates for busses with seating capacity for 16 or more persons; cargo vehicles with a maximum payload exceeding 1 ton or a gross vehicle weight exceeding 3.5 tons; special-purpose vehicles with a gross vehicle weight exceeding 3.5 tons; and dump trucks]

Incentives for alternative vehicles:

Supercredits for EVs and FCEVs would be maintained, and a new additional sales credit would be introduced for hydrogen internal-combustion-engine vehicles.

Public comments on the proposed amendments will be accepted until September 14, 2026.

The original texts of the proposed amendments and the related press release are available at the following sites (Korean).
Proposed amendment to the Enforcement Decree of the Clean Air Conservation Act (MCEE Public Notice No. 2026-684):
https://opinion.lawmaking.go.kr/gcom/ogLmPp/87700?opYn=Y&cptOfiOrgCd=1482000&isOgYn=Y&myOpnYn=N&btnType=1

Proposed amendment to the Enforcement Rules of the Clean Air Conservation Act (MCEE Public Notice No. 2026-683):
https://opinion.lawmaking.go.kr/gcom/ogLmPp/87702?opYn=Y&cptOfiOrgCd=1482000&isOgYn=Y&myOpnYn=N&btnType=1

MCEE press release:
https://www.mcee.go.kr/home/web/board/read.do?pagerOffset=10&maxPageItems=10&maxIndexPages=10&searchKey=&searchValue=&menuId=10598&orgCd=&boardId=1877330&boardMasterId=939&boardCategoryId=&decorator=