Launch of the National Carbon Neutrality Project 'Net Zero ChallengeX'

29 Organizations Including Private Sector and Government Sign Cooperation Agreement
Expanding Climate Technology Startup Share to 10% by 2030

The nationwide carbon neutrality project 'Net Zero Challenge X' to discover and nurture startups possessing carbon-neutral innovative technologies is launching.

Net Zero Challenge X aims to discover startups with 'innovative technologies' in the fields of carbon neutrality and green growth, providing various benefits to help them grow based on innovative climate technologies, thereby contributing to carbon neutrality and strengthening green growth.

To this end, the Presidential Committee on 2050 Carbon Neutrality and Green Growth (hereinafter referred to as 'Tan Nokwi') planned the project together with companies, institutions, and ministries that have been nurturing or investing in startups or providing support, and held the Net Zero Challenge X launch ceremony on the 24th.

Net Zero Challenge X is another project to promote collaboration between technology and finance, following the government's announcement in March of a plan to supply more than 450 trillion won in green funds by 2030. It was established to raise public awareness of carbon neutrality and encourage bold investments.

Currently, carbon regulations centered on the EU are emerging as a new international trade order, and demands for decarbonization are increasing not only in individual companies' production processes but also across entire supply chains. The government now plans to discover carbon-neutral innovative technology startups and expand investments to strengthen the competitiveness of key industries and create new industries, thereby securing new opportunities in the climate technology sector.

To this end, from next year, companies and institutions with expertise in nurturing or investing in startups will gather to select and support startups in the fields of carbon neutrality and climate technology.

First, after the integrated project announcement scheduled for December this year, each participating institution will conduct individual announcements starting from January next year to select startups possessing carbon-neutral innovative technologies. The 'excellence in technology and commercialization' will be evaluated by each institution, and the 'contribution to carbon neutrality' will be assessed using an integrated guideline and evaluation criteria by experts from the Carbon Neutrality Contribution Evaluation Committee.

Selected startups will receive nurturing or investment support and become eligible for additional nurturing or common support. The selected startups will be eligible for various supports such as regulatory exemptions, public procurement, green finance, guarantees, mentoring and networking, and IP integrated solutions, receiving necessary support throughout their business growth process.

Meanwhile, at the Net Zero Challenge X business agreement and launch ceremony held that day, Prime Minister Han Duck-soo and representatives from 29 institutions including participating ministries, institutions, and companies gathered to pledge the successful promotion of Net Zero Challenge X for achieving 2050 carbon neutrality, strengthening the competitiveness of key industries, and creating new industries.

Prime Minister Han emphasized, "To realize carbon neutrality and green growth, special efforts from both the government and the private sector are necessary, and investments in science and technology and creative capabilities must be expanded, combined with policy and institutional support. In particular, the process of discovering and nurturing startups with challenging and innovative technologies is essential."

Following the business agreement and launch ceremony, a roundtable meeting to revitalize carbon neutrality and climate technology startups was held, presided over by Prime Minister Han. About 20 people attended, including five startups, five participating institutions and investors in Net Zero Challenge X, and seven government representatives. The meeting was organized to listen to the difficulties and suggestions felt by startups and support institutions on-site and to seek collaboration with related agencies and systematic government support measures.

Attendees inquired about whether major policies related to carbon neutrality, such as the basic plan for power supply and demand, are being smoothly implemented, and requested strengthened research and development (R&D) and commercialization support, as well as initial funding support from the government and public sectors to enable climate technology startups to develop their businesses stably.

At the roundtable, Prime Minister Han said, "By 2025, a more ambitious national greenhouse gas reduction target for 2035 must be established, and from 2026, the Carbon Border Adjustment Mechanism (CBAM) will be fully implemented. The international community's demands for carbon neutrality are gradually increasing and becoming more visible. Considering Korea's manufacturing-based economic conditions and the unfavorable environment for renewable energy infrastructure, alongside scientific and technological innovation, the challenging spirit of creative startups that can commercialize these innovations and bring about substantial change is urgently needed."

Kim Sang-hyup, co-chairman of Tan Nokwi, stated, "Mutual cooperation among 'industry, technology, and finance' is important to strengthen climate competitiveness in the era of carbon neutrality and green growth, and for this, close cooperation and communication between the public and private sectors are essential. Tan Nokwi will incorporate the various opinions raised today into policies and spare no effort to support carbon neutrality becoming a new growth engine for Korea."