The Carbon Neutrality Committee Ignored by Industry... Driving the Final Nail in the Coffin of Accelerated Carbon Neutrality by Term End

Among the 97 committee members, 7 are from industry
October announcement of 2030 NDC increase... "Will the industry's voice be reflected?" concerns raised

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] The presidential carbon neutrality committee, a public-private joint control tower for domestic carbon neutrality policy, has effectively excluded industry figures and formed the committee mainly with pro-government climate and environmental civic groups and experts. The Carbon Neutrality Committee is set to decide in October how much to raise the 2030 Nationally Determined Contribution (NDC) for greenhouse gas reduction, raising concerns that the voices of the industry may not be properly reflected. Critics argue that rather than establishing realistic carbon neutrality goals and implementation measures from a mid- to long-term perspective, the Moon Jae-in administration is pushing for an accelerated carbon neutrality 'final decision' through a body skewed with pro-government figures until the end of its term.

According to the industry on the 21st, out of 97 members of the Carbon Neutrality Committee, only 7 are industry figures such as executives of large corporations or heads of economic organizations.

Excluding the two co-chairs from the public and private sectors, Prime Minister Kim Boo-kyum and Seoul National University Graduate School of Environmental Studies Professor Yoon Soon-jin, and 18 ex officio members composed of relevant ministers, there are 77 appointed members. Among them, the industry representatives are Kim Dong-wook, Vice President of Hyundai Motor Company; Chu Hyung-wook, CEO of SK E&S; Choi Jung-woo, Chairman of the Korea Iron & Steel Association; Kang Sam-kwon, Chairman of the Korea Venture Business Association; Lee Hyun-jun, Chairman of the Korea Cement Association; Moon Dong-jun, Chairman of the Korea Petroleum Association; and Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business. The industry accounts for 36% of the country's total greenhouse gas emissions and bears significant pain and responsibility in the carbon emission reduction process, yet they make up less than 10% of the appointed members.

On the other hand, pro-government climate and environmental civic group members are included in large numbers. More than 20 members come from organizations and research institutes such as the Green Transition Institute and the Energy Citizens' Coalition. To establish practical carbon neutrality implementation measures, broad consultation with the industry is necessary, but the government has included a large number of members from civic groups who share the same voice on the accelerated carbon neutrality policy. This is why there are concerns that the industry, which must bear the full burden of carbon neutrality, may not be able to raise its voice. In the energy sector, while renewable energy experts are included, there is not a single nuclear power expert.

The industry is paying close attention to the additional NDC increase to be announced by the Carbon Neutrality Committee ahead of the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) to be held in the UK in November. The current greenhouse gas reduction target compared to 2017 is 24.4%, but Song Young-gil, leader of the Democratic Party of Korea, is demanding at least 40%, and some environmental groups are calling for a 50% increase. Since the third phase of the Emissions Trading Scheme (2021?2025) started this year, companies' environmental cost burdens have increased, and there are concerns that if the Carbon Neutrality Committee, composed predominantly of pro-government figures, raises the NDC excessively, the pressure felt by companies will intensify further.

An industry official said, "The industry agrees with the overall direction of carbon neutrality, but since it involves excruciating pain, speed control and support are necessary," adding, "The government should set achievable goals and listen to the industry's voices so that the industry can implement them."

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