93% of Manufacturers Say "Carbon Reduction Difficult Due to Regulations"

Announcement of Survey Results from 302 Companies
66% Say "Regulations Cause Facility Investment Setbacks"

[Asia Economy Reporter Moon Chae-seok] Nine out of ten manufacturers experienced regulatory difficulties during the process of pursuing carbon neutrality, causing disruptions in related business initiatives.

The Korea Chamber of Commerce and Industry (KCCI) announced the results of a survey titled "Current Status and Improvement Tasks of Regulations Related to Carbon Neutrality in the Industrial Sector" on the 29th. The survey was conducted from the 2nd to the 13th of this month, targeting 302 domestic manufacturers.

Regulatory Obstacles to Achieving Carbon Neutrality. (Source: Korea Chamber of Commerce and Industry)

The survey results showed that 92.6% of responding companies reported regulatory difficulties during their efforts to promote corporate activities for carbon neutrality. Among these companies, 65.9% said that regulations caused disruptions in facility investments. Responses also indicated experiences such as "postponement of greenhouse gas reduction plans" (18.7%), "setbacks in new business" (8.5%), and "delays in research and development (R&D)" (6.9%).

Regarding the types of difficulties, "complex and cumbersome administrative procedures" (51.9%) was the most common response, followed by "insufficient laws and systems" (20.6%), "non-recognition of greenhouse gas reductions" (12.5%), "stricter than overseas standards" (8.7%), and "positive-type regulations restricting new businesses" (6.3%).

As for corporate activities being prioritized to implement carbon neutrality, "reducing electricity usage" (55.5%) was the most frequent, followed by "fuel and raw material conversion" (19.5%), "use of renewable energy" (10.2%), "establishment of greenhouse gas reduction facilities and process conversion" (8.2%), "promotion of new businesses" (4.7%), and "development of innovative technologies" (1.9%).

The KCCI interpreted that companies tend to avoid pursuing new businesses and developing innovative technologies due to cost burdens, insufficient laws and systems, and business uncertainties. Regarding systems and regulations needing improvement for carbon neutrality, "greenhouse gas emissions trading system" (42.1%) received the highest response, followed by "total air pollution regulation" (24.7%), "facility permits and approvals regulation" (19.2%), and "recycling regulations" (14%). Among these, the KCCI reported that many companies requested improvements to the emissions trading system by expanding incentives for various greenhouse gas reduction activities.

Cho Young-jun, Director of the KCCI Sustainability Management Institute, said, "A significant number of domestic companies are taking on the challenge of carbon neutrality as a new growth opportunity and are actively pursuing business initiatives." He added, "We hope the new government will boldly improve regulations and establish institutional foundations to create an environment where our companies can freely invest in carbon neutrality and promote new businesses."