SHIP'S GREENHOUSE GASES MANAGEMENT SYSTEM

Target Management System

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Target Management System for Maritime Greenhouse Gas and Energy

  • Appointed as the managed enterprise is the businesses with greenhouse gas emission and energy consumption level beyond a specific standard(legal basis)
  • The government and managed enterprise sets the target greenhouse gas emission and energy consumption through mutual discussion.
  • Through the policy, the managed enterprise efficiently achieves reduction target by establishing implementation plan and management system.

Standard for Managed Enterprise Designation

If the enterprise or one of the worksite of the enterprise has the greenhouse gas emission or energy consumption that exceeds the following chart for the past 3 years in the marine transportation sector, the business shall be appointed as managed enterprise by Ministry of Maritime Affairs and Fisheries.

[Basis : Guidelines for Greenhouse Gas Energy Target Management Operations, Article 2]
Standard for Managed Enterprise Designation
Classification For Enterprise For Workplace
Greenhouse Gas Emission (tCO₂eq) 50,000 15,000
Energy Consumption (TJ) 200 80

Managed Enterprise Designation Period

Ministry of Maritime Affairs and Fisheries shall appoint and announce until June 30th of every year.

[Basis : Guidelines for Greenhouse Gas Energy Target Management Operations Article 20]

Relevant Legal Basis

Target Management System implemented with the enactment of 『Basic Act on Low Carbon, Green Growth』 in 2010.
Relevant Legal Basis
Classification Relevant law and announcement, etc.
Implementation Basis 「Basic Act on Low Carbon, Green Growth」 Article 42 and the ordinance」Article 26 ~ Article 36
Detailed guideline 「Guidelines for Greenhouse Gas Energy Target Management Operations」(Ministry of Environment Announcement no.2016-255)

Responsible Organization by Sectors

Ministry of Maritime Affairs and Fisheries designates the managed enterprise in the marine transportation sector(maritime/fishery/coastal shipping/harbor), sets the target, evaluate the implementation performance, and manage administrative tasks

Main Contents

The marine transportation enterprise designated by the Ministry of Maritime Affairs and Fisheries shall submit “specification” related to the greenhouse gas emission and energy consumption, receive the target, and submit the ‘implementation plan’ for achieving the target as well as the ‘implementation performance report’ to be evaluated of their achievements .

[Basis : Guidelines for Greenhouse Gas Energy Target Management Operations Article 20, 39, 30, 40, 42]
  1. Managed enterprise appointment(Y-2 June)
    • Calculate greenhouse gas emission and energy consumption with fuel oil usage investigation by enterprise.
    • Appoint and announce the managed enterprise(end of June) with emission and consumption exceeding the standard.
  2. Submit specification(Y-1 March)
    • Managed enterprise must submit “specification” regarding the greenhouse gas emission and energy consumption for each facility through using the electronic method called National Greenhouse Gas Management System(NGMS) (End of March)
  3. Set Target/ Establish Plan(Y-1 September/December)
    • Ministry of Maritime Affairs and Fishery must set and notify the target emission for the following year after mutually discussion with the managed enterprise(September)
    • Managed enterprise must submit “implementation plan” for achieving the target electronically using NGMS(December)
  4. Enforce the target plan(Y-1 January ~ December)
    • Managed enterprise enforce the greenhouse gas reduction and energy saving
  5. Submit Implementation Performance Plan(Y+1 March)
    • Managed enterprise shall submit the implementation performance to Ministry of Maritime Affairs and Fishery through NGMS (end of March)
      * Implementation performance must be based on the implementation plan established reflecting the improvement order of responsible organization, and must be verified by the verification institution.
  6. Evaluate/Improvement Advice(during Y+1)
    • Ministry of Maritime Affaires and Fisheries shall order improvement measures if the implementation performance fails to meet the target or if the report contents is insufficient

Imposition of Penalty

According to the Article 64 (Penalty) of the Basic Act on Low Carbon, Green Growth, the managed company shall be imposed with a penalty of 10 million KRW or less in case of false report or if it fails to report in accordance with Article 42 and Article 44.

Specification Overview

‘Evaluation Reports such as Yearly Greenhouse Gas Emissions’ for each emission facility of managed enterprise

[Basis : Guidelines for Greenhouse Gas Energy Target Management Operations, Article 102]

Main Items

  1. General information of the managed enterprise and business (Industry, address, size, etc.)
  2. Greenhouse gas emission and energy consumption facility conditions, and each emission and consumption figure of each facility
  3. Greenhouse gas reduction, absorption, elimination performance
  4. Managed enterprise specification Verifying Institution and Verification Report

Preparation and Submit Method

Prepare and submit according to the “NGMS Specification Education Material” until March 31st of every year. Refer to the “Guideline for Preparing Ship (shipping) Specification, Implementation Plan and Implementation Performance Report” distributed by Ministry of Maritime Affairs and Fisheries.

Legal Basis

Guidelines for Greenhouse Gas Energy Target Management Operations Article 29, Article 30

Target Setting Period

After Ministry of Maritime Affairs and Fisheries through the consultation consults with the managed enterprise, following year’s target is set until the September of every year.
  • Newly appointed managed enterprise shall set the target in the following year.

Target Setting Process

  • Pre-survey and analysis related to target setting
  • June ~ August Minister of Maritime Affairs and Fisheries
  • Discussion with Managed Enterprise, and Set the Target
  • September, Ministry of Maritime Affairs and Fisheries, Managed Enterprise
    (Basis : Guidelines for Greenhouse Gas Energy Target Management Operations Article 29, Article 30)

Target Setting Method

After adding the expected emission of the conventional facility with expected emission of the newly created or expanded facility, reflect the reduction rate of the business filed for confirming that year’s target for the managed enterprise.
Target of the Enterprise (Allowed Emission) = [(Emission expected from existing facility × expected growth) + expected emission from new/expanded facility] × Reduction rate by the field [Basis : Guidelines for Greenhouse Gas Energy Target Management Operations, Attached Table 6]

Legal Basis

Guidelines for Greenhouse Gas Energy Target Management Operations, Article 40 and Article 42

Submitting Period

Implementation plan due is December 31st (Y-1), and Implementation performance due is March 31st (Y+1)
  • Set Target
  • September 30(Y-1)
  • Submit Implementation Plan
  • December 31(Y-1)
  • Enforce Implementation Plan
  • January ~ December(During Y)
    (Managed Enterprise)
  • Submit Implementation Performance Report
  • March 31(during Y+1)
    (Managed Enterprise-> Ministry of Maritime Affairsand Fisheries)
(*Y : Target implementation starting year)

Submitting Method

Prepare and submit referring to the “Guideline for Preparing Ship (shipping) Specification, Implementation Plan and Implementation Performance Report” distributed by Ministry of Maritime Affairs and Fisheries.