[Climate Tech Battle⑮] Tackling Carbon Emission Issues at Once... Integrated Carbon Management Platform 'Winkle'

Park Seonghun CEO "Insufficient Preparation for Carbon Emission Reduction"
Carbon Emission Regulations Directly Linked to Corporate Survival
Leading the Revitalization of the Carbon Emission Trading Market

Globally, efforts to reduce corporate carbon emissions are expanding. The European Union (EU) will implement the Carbon Border Adjustment Mechanism (CBAM) starting in 2026 and will expand export regulations. However, in South Korea, except for some large corporations, many companies do not even know their own carbon emissions. This is why Winkle, which provides a one-stop solution for carbon emission issues, is gaining attention.

Winkle was established in June 2022 to activate the trading of carbon credits (carbon offset credits). It offers an integrated carbon management platform that solves corporate carbon issues in a one-stop manner, including calculating corporate carbon emissions, appropriate reporting, setting carbon neutrality and reduction targets, and supplying carbon credits that contribute to reducing carbon emissions.

The company was co-founded by CEO Park Seong-hoon, who oversaw mobile new business and blockchain business at Samsung Electronics, and Professor Oh Dae-gyun of Seoul National University, a member of the supervisory body of the United Nations Framework Convention on Climate Change (UNFCCC).

Park Seonghun, CEO of Winkle.

On the 24th, CEO Park Seong-hoon said, “Looking around the domestic field, many small and medium-sized enterprises are not prepared at all for carbon reduction,” adding, “The management crisis is becoming a reality as transactions are halted due to carbon emission regulations, but the industrial field still lacks adequate response.”

The carbon market is divided into a regulatory carbon market formed by government regulations and a voluntary carbon market where carbon emission reductions and their results are traded without regulations. Representative voluntary carbon market initiatives include 'SBTi,' a project launched to reduce greenhouse gas emissions based on scientific data, and the international campaign 'RE100,' which aims to supply 100% of electricity consumption with renewable energy such as wind and solar power by 2050.

CEO Park emphasized, “In the regulatory carbon market managed by the government, if standards are not met, companies just pay fines, but in the voluntary market led by the private sector, corporate credibility is affected, directly impacting survival. In the case of SBTi, not only member companies but also subcontractors are required to set carbon emission reduction targets. Subcontractors who fail to meet these targets cannot survive.”

In fact, the voluntary carbon market is rapidly expanding. The number of global companies joining SBTi increased from about 1,500 in July 2021 to about 8,000 this year. Companies joining SBTi must set and disclose greenhouse gas emission reduction targets within two years.

CEO Park analyzed, “All four major financial institutions in South Korea have joined SBTi, and if they lend to small and medium-sized enterprises using fossil fuels, the financial institutions may be held responsible under 'Scope 3.' If loans are eventually recalled, it will cause a tremendous ripple effect.”

Winkle Marketplace view. (Photo by Winkle website)

Greenhouse gas reduction targets include direct greenhouse gas emissions occurring during product manufacturing (Scope 1) and indirect greenhouse gas emissions including electricity used at business sites (Scope 2). Scope 3 includes supply chains and partners for general companies, and for financial institutions, it includes loans, real estate project financing (PF), and carbon emissions of investment target companies.

The problem is that achieving carbon emission reduction targets requires a long time and significant investment. The reality is that many companies do not currently have the capacity to meet these targets immediately. Ultimately, companies are forced to purchase carbon credits to offset their emissions, and Winkle plans to lead the carbon credit market. CEO Park said, "Winkle operates the Winkle Marketplace, which brokers high-quality carbon credits certified by global carbon credit certification bodies such as Verra and Gold Standard," adding, "Our goal this year is to trade carbon credits equivalent to 50,000 tons."