Choi Tae-won: "Environmental Regulations Are Overwhelming for Small Businesses" Han Hwa-jin: "Preparing Regulatory Improvements"

KCCI and Ministry of Environment to Establish Regulatory Hotline

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry (right) is having a conversation with Han Hwa-jin, Minister of Environment, at the Korea Chamber of Commerce and Industry building on the 6th.

[Asia Economy Reporter Oh Hyung-gil] The Korea Chamber of Commerce and Industry (KCCI) and the Ministry of Environment have established a regulatory hotline to improve regulations related to corporate carbon neutrality implementation.

On the 6th, Choi Tae-won, Chairman of the KCCI, met with Han Hwa-jin, Minister of Environment, at the KCCI headquarters and said, "Companies have been continuously engaging in production and sales activities with environmental considerations, but recent various supply changes have caused significant difficulties. It is also true that continuing discussions about environmental regulations is currently especially burdensome for small and medium-sized enterprises."

He added, "Along with environmental issues, we should consider ways to also boost the environmental industry. Instead of only thinking about environmental regulations, if companies perform well in environmental activities, there could be incentives. If we internalize what was externalized, companies might be able to solve problems better."

In response, Minister Han Hwa-jin said, "We are considering how to firmly uphold environmental policy goals while rationally and smartly improving regulations. We are listening to voices from the field and preparing fundamental improvements for different types of regulations, such as cluster regulations, shadow regulations, and sandbag regulations."

During the meeting, the Ministry of Environment conveyed its review stance on the regulatory status and improvement tasks related to industrial carbon neutrality announced by the KCCI in May.

Previously, the KCCI proposed ▲exemption from waste regulations for reuse and recycling of used batteries ▲realistic standards for pyrolysis oil manufacturing from waste plastics ▲exemption from waste regulations and expansion of permissible scope for reuse of carbon dioxide captured by CCUS (Carbon Capture, Utilization, and Storage) technology ▲expansion of the usage limit for offset credits in the greenhouse gas emissions trading system ▲simplification of domestic conversion procedures for overseas greenhouse gas emission rights.

The Ministry of Environment stated, "We are actively reviewing measures to exempt used batteries from waste regulations and plan to promptly proceed after reviewing regulatory revisions related to standards for pyrolysis oil manufacturing from waste plastics."

Regarding CCUS technology, the ministry responded, "Through authoritative interpretation, we have already resolved that captured carbon dioxide is not considered waste, and based on the results of demonstration projects scheduled by the end of this year, we will actively review whether to exempt it from waste regulations to expand the scope of reuse."

Additionally, concerning the greenhouse gas emissions trading system, the ministry said it will also review measures to simplify the domestic conversion procedures for overseas greenhouse gas emission rights and rationalize conditions for additional allocation of emission rights during new installations or expansions.