The Framework Act on Carbon Neutrality Passes Environment and Labor Committee...Business Community Says "Lacked Discussion with Industry" (Comprehensive)

[Asia Economy Reporter Su-yeon Woo] As the Basic Act on Carbon Neutrality and Green Growth to respond to the climate crisis passed the National Assembly's Environment and Labor Committee on the 19th, the business community expressed regret, stating that sufficient discussions with the industrial sector were not conducted from the perspective of the development of the national economy.

In the early hours of the day, the National Assembly's Environment and Labor Committee approved the "Basic Act on Carbon Neutrality and Green Growth to Respond to the Climate Crisis," which includes the content that the 2030 national greenhouse gas reduction target (2030 NDC) must be reduced by more than 35% compared to 2018.

Members of the People Power Party belonging to the National Assembly's Environment and Labor Committee held a press conference on the morning of the 19th at the National Assembly Communication Office to condemn the ruling party's unilateral passage of the Carbon Neutrality Basic Act the previous day. Photo by Yonhap News

Before this resolution, the business community expressed the greatest concern that sufficient discussions and consensus with the industrial sector had not been reached. The Korea Employers Federation pointed out, "Regarding the 2030 national greenhouse gas reduction target, sufficient discussions among stakeholders should be conducted considering Korea's economic and social conditions, but this bill specifies a concrete figure of more than 35% in the law, which is problematic."

They added, "The bill does not present objective grounds for setting the reduction target figure as 'more than 35%' nor does it mention the costs involved. It is also problematic that the government and the National Assembly unilaterally decided without going through a process of collecting opinions from companies, who are direct stakeholders in the discussion."

The Korea Chamber of Commerce and Industry emphasized, "The upward adjustment of the 2030 NDC directly affects our exports and industrial competitiveness, so it requires extensive opinion gathering from experts and companies. We hope that even now, opportunities will be provided to consult with the industrial sector and reflect the realities of companies."

The Federation of Korean Industries also criticized, "Although the legislation of the 2030 national greenhouse gas reduction target should be carefully discussed in the National Assembly considering its impact on our economy, the bill was processed in the relevant standing committee without sufficient discussion."

The business community collectively voiced concerns that the passage of this bill could negatively impact the national economy, considering Korea's economic structure with a high proportion of manufacturing. The Federation of Korean Industries stated, "Considering our manufacturing-centered industrial structure, there is a concern that it could impose excessive burdens on the national economy. We request careful review of the bill during the future legislative committee discussions to ensure that the reduction targets are reasonably established according to our economic conditions."

The Korea Employers Federation emphasized, "It has been less than a year since the government announced the greenhouse gas reduction target at the end of last year. If the reduction target is raised again without sufficient review of the manufacturing-centered industrial structure and energy system, significant side effects are expected throughout society."

The Korea International Trade Association also said, "Considering Korea's industrial structure, which has a high export dependency relative to GDP and a high proportion of manufacturing, the high greenhouse gas reduction target of 35% will cause difficulties in enhancing export competitiveness, economic growth rate, and job creation for our companies. It is more desirable to delegate the greenhouse gas reduction target to subordinate legislation rather than law, allowing flexible responses in future international negotiations by sufficiently considering the domestic industrial structure."

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