South Korea’s Ministry of Trade, Industry, and Energy has unveiled the “2023 Energy Diagnosis Subsidy Program” to alleviate the financial burden on businesses and households from increased energy costs. The initiative will subsidize the diagnostic costs of small and medium-sized companies and older buildings, utilizing the diagnostic results in a database. The 2023 budget has increased to KRW 148.6 billion, focusing on inducing the transition to low-energy consumption and high-efficiency structures across the country.
To achieve this goal, the government plans to overhaul and reform energy efficiency management systems, such as raising the minimum consumption efficiency standard for fluorescent lamps, and promote the dissemination of energy management systems, expanding financing support, installing high-efficiency equipment, and supporting the purchase of high-efficiency appliances for vulnerable and small businesses.
The 2023 energy diagnosis subsidy program will support industrial diagnosis subsidy and building energy diagnosis information database construction. The industrial diagnosis subsidy will support small and medium-sized enterprises with an annual energy consumption of more than 500 toe and less than 2,000 toe to diagnose energy usage and improve energy-saving measures. The building energy diagnosis information database construction project will support diagnosing old buildings, residential facilities such as old apartment buildings, government offices, and facilities where small and medium-sized businesses are located.
The government plans to establish a database of diagnostic results for efficiency improvement support and to achieve a nationwide transition to low-energy consumption and high-efficiency structures.
Similar programs and subsidies exist in other countries as well. In the United States, the Better Buildings Initiative provides resources, technical assistance, and recognition to organizations that commit to improving energy efficiency in their buildings. The European Union’s Energy Efficiency Directive establishes energy efficiency obligation schemes, and Australia’s Energy Efficiency Opportunities program identifies cost-effective energy efficiency opportunities for large energy-using businesses.
These programs and initiatives demonstrate a global trend toward promoting energy efficiency and reducing greenhouse gas emissions through targeted policies and subsidies. The 2023 Energy Diagnosis Subsidy Program is another significant step towards creating a sustainable future for all.
