A power struggle is escalating between the Ministry of Climate, Energy and Environment and the Ministry of Trade, Industry and Resources over the Energy and Resources Special Accounts (Ateuk accounts), a 6 trillion won fund used for energy resource development and stockpiling and for supporting the spread of new and renewable energy.
The Ministry of Trade and Industry (MOTI) had handled the operation and management of the Ateuk accounts, but after the government reorganization in Oct. last year, the Ministry of Climate, Energy and Environment took over. That is because the overall energy policy function moved from MOTI to the climate ministry.
As the importance of resource security has grown due to the recent Middle East war, MOTI is reportedly seeking to take back the Ateuk accounts and use them as funding to establish an "industrial resources security fund." In contrast, the climate ministry is said to oppose the move out of concern that funding for eco-friendly projects, such as the spread of zero-emission vehicles, would be reduced.
◇ MOTI: "Fossil fuel levies are the main source...let's spend more on resource security" vs. climate ministry: "We should keep using it for decarbonization projects"
According to ChosunBiz's reporting, the Ministry of Planning and Budget, the climate ministry, and MOTI began discussions last month on plans to revamp the operation of the Ateuk accounts.
The Ateuk accounts are special accounts set up to stabilize energy supply and demand and prices, totaling 614.59 billion won in revenue last year. About half of the revenue comes from fossil fuel levies under MOTI's purview. These levies include oil import and sales levies imposed when importing or selling crude oil or gas, and the gas safety management charge.
In line with the government's shift to phasing out coal and expanding new and renewable energy, 50.8% of the budget was allocated to climate ministry programs and 38.4% to MOTI programs, based on last year's budget.
MOTI is reportedly reviewing the creation of an industrial resources security fund to be used for expanding oil stockpiles and diversifying crude oil import sources in light of the Middle East war. The position is that the Ateuk accounts should be used as the funding source for this fund. Since the money was raised through oil and gas levies, it should be used to support related industries, they argue. MOTI is also said to insist that it should take back authority to operate the Ateuk accounts.
For the climate ministry, this is a hard request to accept. There is concern that if the Ateuk accounts return to MOTI, funding for decarbonization projects such as the spread of zero-emission vehicles could shrink. The ministry is also said to believe it would be difficult to hand back the accounts in less than a year after taking them over last year.
A Ministry of Planning and Budget official said, "Discussions on revamping the Ateuk accounts are underway, but no direction has been decided."