Choi Tae-won: "Carbon Neutrality Incentives Require Strengthened Public-Private Cooperation"

Choi Jong-hyun Academy and University of Tokyo Co-host "Designing the Future: Science and the Human Mind"
Human Determination More Important Than Technology for Overcoming Pandemic and Future
Carbon Reduction Participation Should Be Encouraged Through Incentives, Not Regulation

[Asia Economy Reporter Hwang Yoon-joo] SK Group Chairman Chey Tae-won repeatedly emphasized that incentives should be provided by both the public and private sectors to encourage corporate participation in carbon neutrality. This is interpreted to mean that it is more effective to use incentives to elicit voluntary participation from companies rather than governments unilaterally responding to the climate crisis through carbon neutrality regulations.

According to SK Group on the 3rd, Chairman Chey made these remarks in his opening address at the 'Tokyo Forum 2021,' jointly hosted online on the 2nd by the Choi Jong-hyun Academic Foundation and the University of Tokyo. The Tokyo Forum is an international forum established by the Choi Jong-hyun Academic Foundation, founded by Chairman Chey and SK in honor of the late Chairman Choi Jong-hyun’s commitment to talent development, and has been held together with the University of Tokyo since 2019. This year, the forum was held online over two days, the 2nd and 3rd, under the theme 'Designing the Future: Science and the Human Mind.' Chairman Chey attended as SK Chairman and Chairman of the Choi Jong-hyun Academic Foundation.

In his opening speech, Chairman Chey stated, "To overcome the pandemic and achieve the goal of creating a better future, we must explore the infinite potential of science, technology, and the human spirit," adding, "In fact, the greatest challenge is not technology but human determination."

Chairman Chey said, "The technologies that help achieve the net-zero carbon emission goal already exist, but there is a lack of collective will and systems to implement them," and added, "Countries around the world play important roles, and more efforts are needed to establish organized response systems."

He emphasized that providing incentives through strengthened public-private cooperation can play a crucial role in solving the problem. He explained that companies possess the know-how and financial expertise to use eco-friendly technologies if appropriate incentives are given. In this regard, Chairman Chey mentioned SK’s developing 'Environmental Protection Credit (EPC),' a system that quantifies and provides incentives when companies voluntarily participate in carbon reduction. He proposed encouraging participation in EPC by global capital and financial markets to provide benefits that enable the execution of eco-friendly projects.

Public-private cooperative responses using incentives instead of regulations is a method Chairman Chey has consistently emphasized. Last month, as chairman of the Korea Chamber of Commerce and Industry, he attended the '2nd Carbon Neutral Industrial Transition Promotion Committee' and stated, "We need to think about how to create systems for achieving carbon neutrality through public-private cooperation," adding, "To promote carbon neutrality in the industry, it is time to consider ways to positively lead companies rather than focusing on regulation-centered perspectives." At that time, Chairman Chey said that one example of such a method could be "promoting innovative carbon reduction technologies by providing incentives to companies that perform well in reducing carbon."

An SK official said, "It is very meaningful that leaders worldwide, including Korea and Japan, have established a platform through the Tokyo Forum to share concerns and solutions regarding common issues facing humanity," and added, "We hope that Korea will lead international discussions and enhance its national status through events like the Tokyo Forum sponsored by SK."