Proposal to Establish a Global Public-Private Partnership System for Net Zero Realization
"Incentives Needed to Motivate Corporate Behavior Change and Innovative Technology Development"
[Asia Economy Reporter Oh Hyung-gil] "Companies must move away from being the cause of climate change issues and embrace a new role as problem solvers."
Choi Tae-won, Chairman of SK Group, has advocated for a new role for entrepreneurs in combating global climate change. He proposed that companies transition to future eco-friendly businesses to realize carbon net-zero emissions and that a global public-private cooperation system be established to support this.
According to the business community on the 7th, Chairman Choi recently published an article titled "Fighting Climate Change: Turning Aspirations Into Action" on the online edition of the American economic magazine Forbes.
In his article, Chairman Choi stated, "The world is undergoing a 'Great Transformation' to confront the climate crisis," adding, "Commitments to reduce carbon emissions and combat the impacts of climate change are leading a paradigm shift toward more sustainable resources."
However, he noted, "Although there is a global consensus to achieve net-zero before 2050, differences still exist among countries in setting targets and implementation plans," and evaluated, "At the 26th Conference of the Parties (COP26) to the Climate Change Convention held last year in Glasgow, UK, participating countries failed to reach an agreement, revealing conflicts among nations over emission reductions, commitments to fight climate change, and financial support."
In response, Chairman Choi emphasized, "We can no longer afford to delay climate action," and said, "The time to act is now." He particularly pointed out that while countries continue negotiations on net-zero, companies must play a role in fighting against the real threats.
Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry is delivering the keynote speech at the "Energy Transition and Carbon Neutrality Policy Seminar" held on the 28th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Hyunmin Kim kimhyun81@
Furthermore, Chairman Choi said, "For a long time, companies have focused on maximizing profits, recklessly using fossil fuels as cheap energy sources and ignoring the large-scale environmental destruction caused by them," emphasizing, "Entrepreneurs must commit to bold and proactive actions that help reduce emissions and realize net-zero, beyond conventional business."
He continued, "Companies that foresee the future and transform their businesses will play a leading role in supplying future energy and building future industries that address climate change risks," urging, "They must actively expand research and development investments in eco-friendly technologies such as energy transition, carbon capture, and resource circulation."
Chairman Choi also stated that a new approach is needed to solve environmental problems. He explained, "The approach to solving environmental issues is measurement," adding, "Quantifying how corporate activities impact the environment is necessary to determine how many external phenomena occur."
This means that if companies establish objective standards to measure external effects, they can accurately recognize environmental factors and manage and improve environmental problems caused by corporate activities. To this end, SK Group has been calculating the creation of intangible social value in terms of tangible monetary value since 2018.
Chairman Choi also added that incentives are necessary to raise corporate environmental awareness. He said, "Regulations can motivate changes in corporate behavior, but 'carrots' must be carefully considered to encourage voluntary technology development and innovative business development," stating, "Incentives will motivate companies to develop and utilize eco-friendly technologies, including carbon reduction solutions."
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