KCCI "Concerns Over Side Effects of Carbon Neutrality Basic Act Without Corporate Feedback"

[Asia Economy Reporter Changhwan Lee] The business community expressed concerns on the 18th regarding the Basic Act on Carbon Neutrality and Green Growth (hereinafter referred to as the Carbon Neutrality Basic Act), which was enacted by the National Assembly to respond to the climate crisis.

The Korea Employers Federation (KEF) explained in a statement on the 19th, "The core of this bill is to stipulate that the national greenhouse gas emissions must be reduced by more than 35% by 2030 compared to 2018 in order to achieve the 2050 carbon neutrality goal."

KEF pointed out, "Regarding the 2030 national greenhouse gas reduction target, sufficient discussions among stakeholders are necessary considering Korea's economic and social conditions, but this bill legally specifies a concrete figure of more than 35%, which is problematic."

They continued, "The bill does not present objective grounds for setting the reduction target figure at ‘more than 35%’ nor does it mention the costs involved. It is also problematic that the government and the National Assembly unilaterally decided this without collecting opinions from companies, who are direct stakeholders in the discussion process," they emphasized.

Furthermore, KEF expressed concerns that raising the reduction target again without sufficient review of the manufacturing-centered industrial structure and energy system, less than a year after the government announced the greenhouse gas reduction target at the end of December 2020, could cause significant side effects across society.

KEF stated, "In Korea’s case, due to the manufacturing-centered industrial structure (manufacturing’s share of GDP is 26.9%, second highest in the world) and high dependence on coal-fired power generation, there are very limited conditions to achieve the reduction targets presented by the ‘Carbon Neutrality Basic Act.’ If coal-fired power generation is reduced or halted, the only current means to meet electricity demand while minimizing greenhouse gas emissions is nuclear power generation. However, if the policy direction of phasing out nuclear power is maintained, an energy supply crisis is inevitable," they forecasted.

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