92.8% of SMEs Say "Difficult to Achieve National Greenhouse Gas Reduction Targets"

Nine out of Ten SMEs Say Achieving Greenhouse Gas Reduction Targets Is "Impossible"
Lack of time, funds, and technology cited as main obstacles

Nine out of ten small and medium-sized enterprises (SMEs) in South Korea reported facing difficulties in achieving the national greenhouse gas reduction targets.

The Korea Federation of SMEs announced the results of the "Survey on Carbon Neutrality for SMEs," conducted last year on 500 manufacturing SMEs, on the 19th.

According to the survey, 92.8% of the respondent companies stated that it is "impossible to achieve the national greenhouse gas reduction targets within the deadline." In particular, 86.0% of companies classified as "mandatory greenhouse gas reduction enterprises" also responded that achieving the targets within the deadline is impossible. This indicates that most SMEs are experiencing significant challenges in reducing greenhouse gas emissions.

The main reasons for not establishing a carbon neutrality response plan were ▲lack of time to understand and review carbon neutrality (51.2%) ▲lack of funds and manpower (31.2%) ▲absence of verified technology or equipment (23.2%), in that order. Regarding the burden of additional costs incurred due to carbon neutrality, 84.8% of respondent companies reported feeling a financial strain.

The most needed support policies for implementing carbon neutrality were identified as ▲support for replacing outdated facilities (50.4%) ▲support for introducing energy efficiency improvement devices (26.2%) ▲establishment of a differentiated electricity tariff system for SMEs (22.6%).

However, for "mandatory greenhouse gas reduction enterprises," the most needed policies were ▲establishment of a differentiated electricity tariff system for SMEs (28.0%) ▲free allocation ratio freeze for emission permits (24.0%). For "non-mandatory greenhouse gas reduction enterprises," the most needed policies were ▲support for replacing outdated facilities (68.7%) ▲support for introducing energy efficiency improvement devices (30.7%), showing a clear difference.

Yang Chan-hoe, Head of the Innovation Growth Division at the Korea Federation of SMEs, said, "Although awareness of the national greenhouse gas reduction targets among SMEs has increased, the reality is that they lack the financial capacity to implement them. Therefore, it is necessary to expand direct government support, such as increasing subsidy rates, to help SMEs replace outdated facilities or introduce energy-efficient equipment."

Yang also added, "Since greenhouse gas emission status and carbon neutrality response levels vary by industry, tailored support centered on industry-specific cooperatives is needed. Because it is realistically difficult for individual SMEs to respond on their own, the private sector should also aim for carbon neutrality across the entire supply chain through win-win cooperation between large and small enterprises."