🚨 Climate Companion Card: A New Paradigm for Eco-friendly Transportation

Today Korean Social News | 2025.04.27

📌 'Climate Companion Card' for Transportation Welfare: Public Welcomes It While Public Companies Face Growing Deficit

💬 Seoul City's 'Climate Companion Card' is receiving high praise from citizens as it aims to reduce transportation costs and achieve carbon neutrality. The monthly flat-rate system allows unlimited use of subways, buses, and public bicycles (Ttareungi), which has increased public transportation usage. However, the flat-rate structure is rapidly expanding losses for Seoul Metro. This year's expected loss is estimated at 134.1 billion won, and both the city and the corporation are considering financial countermeasures such as fare increases.

Summary

• The Climate Companion Card is a transportation welfare policy that allows unlimited use of public transportation for a monthly fixed fee.
• Despite its advantages of environmental protection and reduced transportation costs, there is increasing financial burden on public enterprises.
• Appropriate pricing policies and financial support are needed for sustainable transportation policy.

1️⃣ Definition

Climate Companion Card is a transportation card system that allows unlimited use of subways, buses, public bicycles, and other public transportation for a monthly fixed fee. Simply put, it's like a "transportation subscription service" where you pay a certain amount each month and can use transportation services as much as you want, similar to Netflix or YouTube Premium.

The Climate Companion Card was introduced as a "killing two birds with one stone" policy that reduces citizens' transportation costs while simultaneously reducing carbon emissions by decreasing private car usage.

💡 Why is it important?

• It significantly reduces household transportation expenses, directly helping the everyday economy.
• It promotes public transportation use instead of private cars, reducing urban traffic congestion and environmental pollution.
• It serves as an important test for the financial structure and sustainability of public transportation services.

2️⃣ Characteristics and Impact of the Climate Companion Card

📕 Main Features and How to Use

• The Climate Companion Card operates on an unlimited flat-rate system. The Climate Companion Card is a service that allows you to use designated transportation services without any limit on the number of uses for a fixed monthly fee.

  • The basic plan costs 65,000 won per month, allowing unlimited use of all buses, subways, and public bicycles (Ttareungi) in Seoul.
  • Additional discounts apply to specific groups such as youth, elderly, and disabled people, who can use the service for 45,000 won per month.
  • Cards can be issued through the Seoul City Transportation Card app or designated sales locations, and the convenient monthly automatic payment system makes it easy to use.

• It connects various modes of transportation. The Climate Companion Card is a multi-modal service that allows integrated use of various transportation methods.

  • With just one card, you can use subways, buses, and public bicycles (Ttareungi), greatly improving mobility convenience.
  • No additional fees occur during transit transfers, allowing you to plan the optimal route for complex travel paths without worrying about costs.
  • There are plans to expand the coverage to various mobility services such as electric scooters and car-sharing in the future.

📕 Socioeconomic Impact and Environmental Effects

• Household transportation cost burden has decreased significantly. The introduction of the Climate Companion Card has greatly reduced the transportation cost burden for ordinary citizens, especially long-distance commuters.

  • Workers who previously spent more than 100,000 won per month on transportation can now save about 35-50% of their transportation costs.
  • Particularly for families with multiple children or dual-income couples, the annual transportation cost savings amount to millions of won.
  • The reduction in transportation costs has led to increased leisure activities and consumption, positively affecting the local economy.

• Environmental effects are also becoming visible. True to its name, the Climate Companion Card is part of a transportation policy to combat climate change, and real environmental effects are being observed.

  • After the card was introduced, public transportation usage in Seoul increased by about 15%, while private car usage decreased by 7%.
  • As a result, carbon emissions from the transportation sector decreased by about 5%, and fine dust concentration also slightly improved.
  • As traffic congestion decreased, the average travel time in urban areas was reduced by about 10 minutes, contributing to improved quality of life for citizens.

Advantages and Disadvantages of the Climate Companion Card

1. Advantages: Reduced transportation costs, promotion of public transportation, reduced carbon emissions, alleviated traffic congestion
2. Disadvantages: Increased deficit for public enterprises, financial burden, potential overloading of transportation infrastructure, equity issues with non-users
3. Points to Note: Despite initial effects, ensuring long-term financial stability and sustainability remains a challenge

3️⃣ Financial Issues and Sustainability Challenges

✅ Increasing Financial Burden on Public Transportation Companies

• The flat-rate structure is causing serious revenue reduction. While the flat-rate structure of the Climate Companion Card is a benefit for users, it acts as a financial burden for public transportation companies.

  • Seoul Metro alone expects an additional loss of about 134.1 billion won this year, on top of existing deficits.
  • There's a structural problem where services must be provided without additional revenue on routes that have reached their capacity limit, especially during rush hours when usage is concentrated.
  • Bus companies are also experiencing difficulties in operation as the revenue from the flat-rate distribution is less than what they earned from the previous distance-based fare system.

• There are concerns about facility maintenance and service quality deterioration. Increased financial burden may affect the maintenance of transportation infrastructure and service quality in the long term.

  • If deficit operations continue, replacement of aging facilities or safety-related investments may be delayed.
  • Despite increased congestion due to more passengers, it's difficult to deploy additional vehicles or reinforce staff, which could lead to service quality deterioration.
  • As usage patterns become unbalanced by time and route, some sections experience extreme congestion while others show low usage rates, creating inefficiencies.

✅ Alternatives and Challenges for Sustainable Operation

• Fare system adjustments and additional financial support are being discussed. Various alternatives are being discussed for the sustainable operation of the Climate Companion Card.

  • Readjusting the basic fare to an appropriate level (about 10-15% increase) is presented as the most realistic alternative to achieve financial balance.
  • Additional financial support from the government and local authorities to ease the burden on public transportation companies is also being considered.
  • Introducing a differential fee system based on usage time or route to simultaneously reduce congestion and increase revenue is also being proposed.

• Social consensus and long-term policy design are key challenges. For the successful establishment of the Climate Companion Card, social consensus among various stakeholders and long-term policy design are necessary.

  • Agreement is needed on an appropriate cost-sharing structure between users, public transportation companies, and the government.
  • A system must be established to accurately measure environmental effects and social benefits to evaluate the value of the policy.
  • A long-term roadmap is needed for building sustainable transportation infrastructure and maintaining service quality, rather than focusing only on short-term popularity.

4️⃣ Similar Cases Domestically and Internationally and Their Implications

💡 International Public Transportation Flat-Rate Cases

• There are successful transportation flat-rate models in European cities. Transportation flat-rate systems are already being successfully operated in several European cities.

  • Vienna, Austria's 'Annual Transportation Pass' allows use of all public transportation in the city for about 1 euro per day, achieving high public transportation usage rates and low private car ownership rates.
  • Luxembourg became the world's first country to make all public transportation free in 2020, achieving effects of reduced traffic congestion and environmental improvement.
  • Germany conducted a temporary policy called the '9 Euro Ticket' in the summer of 2022, which received great response, and they have officially introduced the '49 Euro Ticket' as its developed version.

• There's a lot to learn from international cases. Successful international cases have common success factors.

  • They introduced flat-rate systems after sufficient public transportation infrastructure was established, allowing them to respond to rapid increases in users.
  • They had financial support systems where central and local governments share transportation operation losses at clear ratios.
  • They developed policies in stages under long-term roadmaps, minimizing confusion from sudden changes.

💡 Possibility of Expansion to Other Local Governments

• Several local governments are considering adopting similar policies. After Seoul City introduced the Climate Companion Card, other local governments are actively considering introducing similar policies.

  • Major cities such as Busan, Incheon, and Daegu are conducting feasibility studies to introduce flat-rate cards suitable for their transportation environments.
  • Gyeonggi Province is planning an integrated transportation card system centered on express buses and railways.
  • Some small and medium-sized cities are considering introducing partial flat-rate systems for transportation-vulnerable groups first.

• Customized models tailored to regional characteristics are needed. Developing customized models considering each region's characteristics is important for the successful expansion of the Climate Companion Card.

  • Appropriate fees and service ranges should be differentiated according to population density and transportation infrastructure levels.
  • Fee systems reflecting regional transportation means characteristics are needed, such as bus-centered systems for rural areas and subway-centered systems for metropolitan areas.
  • For the metropolitan area where inter-regional movement is frequent, building an integrated system encompassing the metropolitan transportation network is an important task.

5️⃣ Related Terminology Explanation

🔎 Flat-Rate

• A flat-rate is a payment system where a fixed amount is paid regardless of usage.
• Flat-rate refers to a fee structure where a fixed amount is paid for a specified period regardless of the amount of service or product used. Unlimited mobile phone plans or monthly subscription streaming services like Netflix are typical examples.
• The advantage of flat-rates is that users can predict costs, and the unit cost decreases with more usage. It provides significant economic benefits especially for frequent users.
• For service providers, however, the disadvantages include revenue reduction and increased infrastructure burden due to excessive use. There's also an equity issue as it can be inefficient for infrequent users.

🔎 Carbon Neutrality

• Carbon neutrality means making the amount of greenhouse gases emitted equal to the amount absorbed.
• Carbon neutrality means making the net emissions of greenhouse gases, including carbon dioxide, emitted by human activities '0'. This is achieved by reducing greenhouse gas emissions as much as possible and offsetting unavoidably emitted greenhouse gases through forest creation or carbon capture technologies.
• Since the 2015 Paris Climate Agreement, the world has aimed to achieve carbon neutrality by 2050, and Korea also declared '2050 Carbon Neutrality' in October 2020.
• The transportation sector accounts for about 13% of total greenhouse gas emissions, and expanding public transportation usage is one of the important strategies for achieving carbon neutrality. The Climate Companion Card can be seen as part of policy efforts to reduce carbon emissions in the transportation sector.

🔎 Multimodal Transportation

• Multimodal transportation is an integrated transportation system that links and uses various modes of transportation.
• Multimodal transportation is a concept that organically connects various transportation modes such as buses, subways, bicycles, and shared mobility into an integrated transportation system.
• This efficiently solves complex mobility demands that are difficult to satisfy with a single mode of transportation, maximizing the advantages of each transportation mode. For example, it enables connected movement such as using a bicycle to the nearest bus stop from home, using the bus to the subway station, and then using the subway to near the destination.
• The Climate Companion Card promotes multimodal transportation by allowing the use of various transportation modes such as subways, buses, and public bicycles with a single card. This provides users with more mobility options and contributes to increasing the efficiency of the entire transportation system.

6️⃣ Frequently Asked Questions (FAQ)

Q: How do I apply for the Climate Companion Card and where can I use it?

A: You can apply for the Climate Companion Card through the Seoul City Transportation Card app or designated card sales locations. After going through an identity verification process, you can receive a physical card or get it issued as a mobile transportation card. After card issuance, if you pay the monthly fixed fee (65,000 won for general users, 45,000 won for discounted users), you can use all buses, subways, and public bicycles (Ttareungi) in Seoul unlimitedly during that month. The usable area is basically limited to the administrative area of Seoul, and separate fees may be charged for some Gyeonggi Province connected routes. Card renewal can be set to automatic payment or paid manually each month, and temporary suspension or cancellation is also possible through the app or sales locations. For detailed information, you can check with the Seoul City Transportation Policy Division (02-123-4567) or the Seoul City Transportation Portal website.

Q: Is the Climate Companion Card a financially sustainable policy?

A: The financial sustainability of the Climate Companion Card is currently one of the most important issues. In the short term, it's true that the deficit of public transportation companies is increasing significantly. However, from a long-term perspective, it can be sustainable if several conditions are met. First, an appropriate level of fare adjustment is needed. If the current fare does not sufficiently reflect the actual operating costs, a gradual increase of about 10-15% may be necessary. Second, stable financial support from the government and local authorities must be guaranteed. As public transportation has a strong public good character, public support considering environmental and social benefits can be justified. Third, efficient operation optimization using usage pattern data should be implemented. Operating efficiency can be improved through peak-time dispersal, adjustment of inefficient routes, etc. Fourth, indirect effects from increased public transportation usage (reduced traffic congestion, environmental improvement, reduced road maintenance costs, etc.) should be accurately measured and reflected in the policy value. In conclusion, it seems possible to develop it into a financially sustainable policy through some adjustments to the current model and social consensus.