Supporting Industrial Decarbonization... Government to Establish 'Carbon Neutrality Special Act'

Launch Ceremony of the Public-Private Joint 'Carbon Neutral Industrial Transition Promotion Committee'
Special Law to be Enacted in the First Half of the Year... Promotion of Site and Environmental Regulation Exceptions

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will enact the 'Special Act on Promoting Carbon Neutral Industrial Structure Transition' within the first half of the year to support companies' efforts to reduce carbon emissions.

On the 16th, Sung Yun-mo, Minister of Trade, Industry and Energy, stated at the launch ceremony of the 'Carbon Neutral Industrial Transition Promotion Committee' held at the Chamber Lounge of the Korea Chamber of Commerce and Industry in Seoul, "We will actively accept industry requests and promote the enactment of the Special Act on Promoting Carbon Neutral Industrial Transition as a foundation to support voluntary carbon neutrality, and establish the 'Vision and Strategy for the Great Carbon Neutral Industrial Transition' within the year."

The Carbon Neutral Industrial Transition Promotion Committee serves as a public-private control tower for achieving carbon neutrality, with Minister Sung Yun-mo and Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, participating as co-chairs.

The industrial sector accounted for 261 million tons of greenhouse gas emissions in 2018, representing 36% of the total. Among these, emissions from the four major industries?steel, petrochemicals, cement, and refining?amounted to 198 million tons, accounting for 75.8% of the entire industrial sector. Accordingly, the government will pursue five core tasks to promote carbon neutrality while minimizing the burden on the industry.

First, the Special Act on Carbon Neutrality will be enacted within the first half of the year. The government will promote voluntary agreements between the government and companies, lead carbon-neutral pilot projects at workplaces, industrial complexes, and regions, and implement site and environmental regulation exemptions to expedite carbon neutrality implementation.

The government will also alleviate companies' cost burdens related to carbon neutrality. It will explore measures to reduce the costs of carbon-neutral transition in areas such as taxation, finance, and regulatory exemptions. In particular, new carbon-neutral related technologies will be additionally reflected in the tax credit targets for new growth and source technology investments. Furthermore, the government will support private-led technological innovations such as hydrogen reduction steelmaking and fuel/raw material substitution, and establish a carbon-neutral research and development (R&D) strategy including a technology roadmap through 2050 by September. Additionally, the '2050 Vision and Strategy for the Great Carbon Neutral Industrial Transition' will be established within the year, and industry opinions will be continuously collected through public-private governance.

Minister Sung Yun-mo emphasized, "Carbon neutrality is a very difficult and challenging task for South Korea, which has a high dependence on fossil fuels and an industry structure centered on manufacturing," adding, "As a global new economic order and a future survival issue, it is difficult but a path we must take."