Ministry of Industry Invests 5 Trillion KRW in Carbon Neutral R&D... '1 Trillion + α' Support for Steel Industry
Ministry of Industry to Apply for Carbon Neutral R&D Preliminary Feasibility Study to Ministry of Science and ICT in September... 50 Trillion KRW Investment Plan from 2023 to 2030
[Sejong=Asia Economy Reporter Kwon Haeyoung] The Ministry of Trade, Industry and Energy will invest 5 trillion won by 2030 in research and development (R&D) of carbon reduction technologies in the industrial and energy sectors. At least 1 trillion won will be poured into the steel industry, which will be directly hit by the Carbon Border Adjustment Mechanism (CBAM) that the European Union (EU) will fully implement by 2026.
According to related ministries on the 15th, the Ministry of Trade, Industry and Energy has prepared a public-private R&D support cooperation project containing these details and plans to apply for a preliminary feasibility study to the Ministry of Science and ICT in September.
An official from the Ministry of Trade, Industry and Energy said, "We plan to establish and announce a carbon-neutral R&D strategy including a technology roadmap around September," adding, "This will be reflected in the preliminary feasibility study."
This carbon-neutral R&D support will focus on high carbon-emitting industries such as steel, petrochemicals, cement, and refining. This is in consideration of the fact that these sectors will face the greatest impact from carbon neutrality implementation. The carbon emissions of these four major industries accounted for 75.8% of the entire industrial sector as of 2018. In particular, more than 1 trillion won will be supported for eco-friendly process transition R&D in the steel industry, which has the highest carbon emissions. Steel companies such as POSCO are focusing on developing 'hydrogen reduction steelmaking' technology that uses hydrogen instead of coal when melting iron ore to produce molten iron, and plan to invest 10 trillion won by 2050.
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An official from the Ministry of Trade, Industry and Energy said, "We are currently in the stage of consulting with the Ministry of Science and ICT on the details to apply for a comprehensive preliminary feasibility study on carbon-neutral R&D," adding, "Energy is a public sector, but industry is a private sector, so the impact can only be significant." He continued, "It is necessary to alleviate the burden of carbon-neutral transition costs for private companies during the carbon neutrality implementation process," and explained, "After passing the preliminary feasibility study, we will discuss specific budgets with the fiscal authorities."
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