The business community welcomed the government's downward adjustment of the greenhouse gas reduction target for the industrial sector, calling it a measure that reflects reality.
On the 21st, the Korea International Trade Association (KITA) issued a statement under the name of Kim Byung-yu, Head of Member Services Division, saying, "It is fortunate that the adjustment of the industrial sector reduction target in the government's announced ‘National Carbon Neutrality Green Growth Basic Plan’ reduces the burden on the trade industry compared to before, but it remains a challenging task for the entire industrial sector." He added, "Given the supply chain restructuring trends of major trading countries such as the U.S. Inflation Reduction Act (IRA) and the EU's Critical Raw Materials Act (CRMA), government support is needed for the industry's efforts to implement the 2030 Nationally Determined Contribution (NDC) for carbon neutrality so that it does not become a double burden on the trade industry facing difficulties." He further stated, "Since the competitiveness of domestic renewable energy power sources is weak compared to competing countries, it is necessary to expand incentives such as tax credits for small and medium-sized export companies using renewable energy and to support R&D for carbon reduction technologies."
The Federation of Korean Industries (FKI) also released a statement under the name of Choo Kwang-ho, Head of the Economic and Industrial Division, saying, "We positively evaluate the downward adjustment of the 2030 NDC industrial sector target from a 14.5% reduction compared to 2018 emissions to an 11.4% reduction." However, he noted, "Even the 11.4% reduction in the industrial sector is still a very challenging goal considering Korea's manufacturing-centered industrial structure," adding, "If groundbreaking technology development and commercialization for carbon reduction do not precede, additional facility investments domestically will inevitably lead to additional emissions."
He also urged the government to prepare groundbreaking incentives such as tax benefits so that Korean companies can actively engage in the development and commercialization of high-cost, high-risk carbon reduction technologies.
Cho Young-jun, Director of the Korea Chamber of Commerce and Industry’s Sustainability Management Institute, said, "With less than seven years left until 2030, reducing current greenhouse gas emission levels by 40% is undoubtedly a very challenging goal." He continued, "The government must make every effort to provide full support such as technology development, facility improvements, and expanded incentives to ensure that the major greenhouse gas reduction measures proposed by the government are implemented without fail, considering the domestic economic situation and the international competitiveness of the industry."
The Korea Employers Federation also emphasized, "The previous reduction target was an unreasonable figure that did not consider uncertainties in technology development and fuel supply," adding, "The revised plan is meaningful in that it lowers these uncertainties."
The government maintained the '2030 NDC,' which aims to reduce carbon emissions by 40% compared to 2018 levels by 2030, while presenting sector- and year-specific reduction targets to achieve this. In the industrial sector, carbon emissions are to be reduced to 230.7 million tons (in CO2 equivalent) by 2030, an 11.4% reduction compared to 2018. This is a 3.1 percentage point relaxation compared to the previous '14.5% reduction compared to 2018.' The reason for the relaxation was explained as "considering realistic domestic conditions such as raw material supply and technology outlook."
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