Industry Voices Concern: "2050 LEDS Could Eliminate 1.3 Million Jobs"

The five major industry associations in steel, petrochemicals, cement, semiconductors, and displays jointly held the "2050 Long-term Low-Carbon Development Strategy Industry Forum" on the 8th at the Korea Chamber of Commerce and Industry.
[Photo by Korea Cement Association]

[Asia Economy Reporter Kim Jong-hwa] As the government embarks on establishing the '2050 Long-term Low Carbon Development Strategy (LEDS)' to be submitted to the United Nations (UN) by the end of this year, concerns have been raised that up to 1.3 million jobs could disappear if the existing private forum recommendations are submitted as is.

On the 8th, five major industry associations including steel, petrochemicals, cement, semiconductors, and displays jointly held the '2050 Long-term Low Carbon Development Strategy Industry Forum' at the Korea Chamber of Commerce and Industry. The forum was organized to gather industry opinions on the '2050 Low Carbon Society Vision Forum' recommendations announced last February and submit them to the government.

The Long-term Low Carbon Development Strategy (LEDS) is a national mid- to long-term vision that sets greenhouse gas reduction targets for the first phase by 2030 and the second phase by 2050. According to the Paris Agreement, each country must establish and submit its long-term low carbon development strategy by this year, and 17 countries including the US, EU, and Japan have already submitted theirs.

Domestically, last year the Ministry of Environment formed and operated the '2050 Low Carbon Society Vision Forum' with about 100 private experts, which in February publicly released forum recommendations for public discussion proposing greenhouse gas reductions compared to 2017 of 75% in Plan 1, 69% in Plan 2, 61% in Plan 3, 50% in Plan 4, and 40% in Plan 5, respectively.

Based on these recommendations, the government began a public survey on the 23rd of last month and plans to hold five expert forums starting this month. The government intends to establish the LEDS by the end of the year by comprehensively considering the private forum review proposals and social discussion results.

◆ Private Forum Recommendations Fail to Reflect Industry and Technology Characteristics... Need for Reassessment

At the forum, industry experts unanimously stated that the '2050 Low Carbon Society Vision Forum' recommendation to reduce emissions by 40% to 75% compared to 2017 "does not reflect the realities of Korea's key industries and the fundamental characteristics of reduction methods," and emphasized the need for a comprehensive reassessment incorporating opinions from industry and technical experts.

Kim Ki-young, Director of the Korea Petrochemical Industry Association, raised concerns, saying, "The core reduction method for the petrochemical sector proposed by the private forum is the production of high value-added products. However, producing high value-added products requires additional processes and energy, which inevitably leads to increased greenhouse gas emissions."

Representing the cement industry, Kim Ui-cheol, Team Leader of the Korea Cement Association, countered, "The core reduction method for the cement sector is the recycling technology of waste concrete. Considering that only about 2% of cement micro-powder can be recycled from waste concrete, following the forum recommendations would require large-scale imports of waste concrete from overseas."

Kim Hyo-soo, Team Leader of the Korea Semiconductor Industry Association, explained, "According to the private forum recommendations, all semiconductor manufacturers must install 100% of process gas reduction facilities and maintain their operation rate at 100%. Even if 100% installation is possible, maintaining a 100% operation rate means that the approximately 30 days per year required for equipment maintenance cannot be performed." This reflects a lack of accurate understanding of industry realities.

Nam Jeong-im, Executive Director of the Korea Iron & Steel Association, pointed out, "The EU and Japan, which have already submitted their 2050 LEDS, plan to reduce greenhouse gases by 5% and 10%, respectively, through hydrogen reduction steelmaking technology using hydrogen. The private forum recommendations propose a 45% reduction, which is far detached from realistic reduction targets."

◆ Korea Institute for Industrial Economics and Trade Analyzes Up to 44% Production Decline in Manufacturing... 860,000 to 1.3 Million Job Losses

Jeong Eun-mi, Director at the Korea Institute for Industrial Economics and Trade, who participated as a discussant, expressed concern, saying, "If the recommendations are implemented without alternatives for reduction methods, manufacturing production must be reduced by up to 44% by 2050. This implies contraction or closure of domestic companies that hold global competitive advantages."

Director Jeong added, "Considering the employment reduction ripple effects on upstream and downstream industries in domestic manufacturing under the five recommendations, the impact could range from a minimum of 860,000 to a maximum of 1.3 million job losses. Public discussion on how to handle the domestic production base of greenhouse gas-intensive manufacturing is essential."

Another discussant, Lee Yeon-gyu of the Korea Display Industry Association, stated, "Key domestic industries including the display sector already possess world-class energy efficiency and technological capabilities, so additional reductions with current reduction technologies are difficult. The 2050 LEDS should be reviewed from more multifaceted perspectives, including industrial realities and the pace of reduction technology development."

This content was produced with the assistance of AI translation services.