[New Trade Barrier Carbon Tax②] Chairman of the Carbon Neutrality Committee: "Carbon Neutrality Is an Economic Issue... We Must Change Our Perception"

Yoon Soon-jin, Private Chair of the 2050 Carbon Neutrality Committee

Not only greenhouse gases and abnormal climate, but also impacts on industrial structure and job transitions

Normalization of low electricity rates needed
Lifestyle changes required to be sensitive to consumption

Carbon neutrality scenario to be finalized this October

Yoon Soon-jin, Co-chair of the Carbon Neutrality Committee, is being interviewed on the 2nd at the Carbon Neutrality Committee in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Joo Sang-don] "We view the monsoon and heatwaves as problems of climate change. However, carbon reduction is no longer just a climate issue. Now, it must be seen from an economic perspective where industrial structure and jobs are changing."

Yoon Soon-jin, a private member of the 2050 Carbon Neutrality Committee, said this in an interview with Asia Economy at his office in Gwanghwamun, Seoul, emphasizing the need to change the basic perception of carbon neutrality. Considering that the world, led by developed countries, is using carbon as part of trade barriers, decarbonization and the economy are becoming more closely linked.

Yoon connects the current climate crisis with the economy to stress the necessity of the challenging task of decarbonization. He believes that if it is seen merely as a weather issue, it is difficult to attract public interest, but linking it to livelihood issues allows for a more serious approach. He pointed out, "In public surveys on climate change, people generally think of greenhouse gases, sea level rise, and abnormal climate. Going forward, ESG (environment, social, governance), green finance, and new jobs should also be included as options."

Yoon also emphasized that curbing carbon emissions is a task that must be undertaken as a member of the international community. South Korea ranks 11th in global greenhouse gas emissions and 7th in carbon dioxide emissions. Particularly, its cumulative greenhouse gas emissions rank 16th. Yoon said, "Among the 192 member countries of the United Nations Framework Convention on Climate Change (UNFCCC), we rank 11th," adding, "As a major carbon emitter, we must take responsibility." He further stated, "The current generation cannot undermine the decision-making rights and survival rights of future generations."

To manage the enormous change of decarbonization, energy saving, efficiency improvements, and expansion of renewable energy use are necessary. Yoon believes that the relatively low electricity rates compared to other countries also need to be normalized. The government has frozen electricity rates in the second and third quarters of this year. Yoon said, "People think electricity must be supplied 'without problems,' but few consider the process," adding, "We need to be sensitive to electricity consumption, and for that, electricity rates below generation costs must be normalized." He noted, "When visiting stores in our country, air conditioner settings in summer are often set to 18-19 degrees Celsius," and said, "We now need to change this lifestyle." During the interview, Yoon only lowered the blinds in his sunlit office and did not turn on the air conditioner or lights.

The Carbon Neutrality Committee plans to finalize the 2050 carbon neutrality scenario around the end of October this year. They have received the government's technical working group's carbon neutrality plan, but strictly speaking, it does not achieve net zero carbon emissions by 2050, so the committee is expected to propose stronger measures. In particular, there appears to be deep consideration regarding coal power generation. Yoon said, "One of the two government scenario plans includes maintaining coal power generation," adding, "There were conflicting opinions on whether it makes sense to keep coal power until 2050 or whether the government is not keeping it by choice."

Regarding this, Yoon revealed that multiple carbon neutrality scenarios are being considered. He said, "The goal is 2050 carbon neutrality, and the difference lies in what and where to reduce more," adding, "Although not yet finalized, I think there will be two or three scenarios based on emission levels." The approach is to reduce emissions as much as possible; if emissions remain high, carbon capture, utilization, and storage (CCUS) facilities will be expanded, and if emissions are low, CCUS will be reduced. Yoon said, "If CCUS is increased, the scenario will include evaluations of who should bear the costs, energy mix, and the degree of technology commercialization."