Experts: "Government's Sudden Push for Carbon Neutrality Weakens Our Companies' Competitiveness"
[Asia Economy Reporters Changhwan Lee and Chaeseok Moon] Experts have pointed out that the government's overly rapid carbon neutrality policy will significantly weaken the competitiveness of our companies.
Our industry, which is manufacturing-centered, is expected to suffer greater damage compared to other countries, causing various problems such as job losses, economic contraction, and power supply crises.
On the 22nd, experts gathered at the Seoul Press Center for the discussion hosted by the Korea Employers Federation titled ‘Evaluation of Carbon Neutrality Policy and Desirable Directions for Industrial Transition’ voiced unanimous concerns about the government's accelerated carbon neutrality policy.
Lee Dong-geun, Vice Chairman of the Korea Employers Federation, stated, "The government and the Carbon Neutrality Committee unilaterally raised the 2030 National Greenhouse Gas Reduction Target (NDC) sharply without considering the opinions of the industrial sector," adding, "Given Korea’s manufacturing-centered industrial structure, rapidly increasing the NDC in a short period could not only weaken the competitiveness of our companies but also cause serious side effects to the national economy."
There was also an analysis that the job issue will become severe. Yoo Seung-hoon, Professor of Energy Policy at Seoul National University of Science and Technology, emphasized, "Our key industries such as refining, steel, and petrochemicals are identified as major greenhouse gas emitters and may be phased out in the future," adding, "Carbon neutrality that reduces jobs will not gain public support."
Meanwhile, the government announced on the same day that it will expand tax benefits for the development of carbon neutrality technologies. Lee Ok-won, First Vice Minister of the Ministry of Economy and Finance, presided over the ‘36th Policy Review Meeting and 31st Price-Related Vice Ministers’ Meeting’ at the Government Seoul Office and stated, "We will add carbon neutrality technologies in high carbon-emitting industries such as steel and chemicals to the ‘New Growth and Core Technology R&D Tax Credit’ program."
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