"Over 500 Trillion Won Needed for Carbon Neutrality by 2050... Systematic Roadmap Must Be Created"

On the 26th, Jeong Manki, Chairman of the Korea Industrial Federation Forum, delivered a greeting at the 6th Industrial Development Forum and the 11th Automotive Industry Development Forum held at the Korea Semiconductor Industry Association in Pangyo, Gyeonggi-do, on the theme of "Transition Tasks in the Industry and Energy Sectors for Climate Change Response."

Industrial and Energy Tasks for Climate Change Response
Industrial Development Forum and Automotive Industry Development Forum Held

[Asia Economy Reporter Seong Giho] As South Korea sets a goal of carbon neutrality by 2050 (the concept where greenhouse gas emissions and absorption are equal, resulting in net zero emissions), claims have emerged that investments exceeding 500 trillion won are necessary to realize this plan. Although carbon neutrality is a global trend, systematic review of the appropriate pace is needed due to the large investment costs.

The Korea Industrial Federation Forum and the Automotive Industry Federation held the 6th Industrial Development Forum and the 11th Automotive Industry Development Forum on the 26th at the Korea Semiconductor Industry Association located in Pangyo, Gyeonggi Province, under the theme "Industrial and Energy Sector Transition Tasks for Climate Change Response." The Industrial Federation Forum includes 15 economic organizations by industry, and the Automotive Industry Federation involves 6 institutions related to the automotive industry.

Im Jaegyu, Senior Research Fellow at the Korea Energy Economics Institute, who presented that day, analyzed, "To achieve carbon neutrality by 2050, electricity demand is expected to increase to about 2.5 times the original national total electricity demand (target), and electricity demand in the industrial and transportation sectors will increase to about 3 times the existing targets, respectively."

He added, "To decarbonize the power generation sector by 2050, it is inevitable to expand the share of renewable energy to about 80% of total power generation," and "additional investments exceeding 500 trillion won are required, including 18.39 trillion won for this investment and up to 32.58 trillion won for backup facility installation and grid reinforcement."

Professor Min Kyungdeok of Seoul National University emphasized, "Since greenhouse gases are emitted during the generation and production processes of electric and hydrogen vehicles, clean energy production policies and eco-friendly vehicle policies must be aligned," adding, "Subsidy-focused promotion of electric and hydrogen vehicles is not sustainable, so a two-track strategy encouraging hybrid vehicle promotion policies, including long-term research and development (R&D) to drastically reduce battery and hydrogen vehicle prices and infrastructure construction, is necessary."

Jung Manki, Chairman of the Industrial Federation Forum, argued, "To reduce 40% of carbon emissions from domestic manufacturing, a 44% reduction in manufacturing output and 1.3 million job cuts are inevitable," and "It is necessary to devise measures that harmoniously resolve greenhouse gas reduction and job retention issues."

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