Government Aims to Achieve 'NDC 40%' by Reducing Greenhouse Gases in Developing Countries... Considering Expansion of Overseas Reductions

Related Ministries Submit 2030 NDC Government Proposal to 탄중위
Includes Plan to Reduce Domestic Emissions by 32.8% and Overseas by 7.2% if NDC Exceeds 40%
Japan and Switzerland Also Raise NDCs and Recognize Overseas Reductions... "Domestic Reduction Targets Are Sufficient, Overseas Reductions Should Increase"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] As the government sets the national carbon emission target for 2030, it is considering expanding the portion of reductions achieved abroad. When a specific country transfers eco-friendly technology to developing countries or makes efforts such as tree planting to reduce carbon, these efforts are recognized as greenhouse gas reduction achievements. The government plans to increase this scale to meet the overall carbon reduction target. It is analyzed that the government’s concern to find a breakthrough stems from the judgment that achieving the aggressive Nationally Determined Contribution (NDC) demanded by the Blue House is impossible through carbon reduction in domestic industry, transportation, and power generation sectors alone. Experts advise that rather than pushing the industrial sector?already cornered to the extent that competitiveness might be harmed?further, it is necessary to actively utilize overseas carbon reduction efforts like Japan and Switzerland.

◆Government: "Expansion of overseas reductions from 2% to 7% necessary"＝According to related ministries on the 18th, the Ministry of Economy and Finance, Ministry of Trade, Industry and Energy, and Ministry of Environment submitted a government proposal to the inter-ministerial carbon neutrality control tower, the 'Carbon Neutrality Committee,' which includes lowering the 2030 NDC by 35-40% or more compared to 2018. The government proposal contains the opinion that if the NDC is set at 40% or higher, the overseas reduction portion should be raised to the level of Japan. Japan has committed to reducing carbon emissions by 46% compared to 2013 by 2030, setting the overseas reduction portion?achieved through transferring eco-friendly technology and capital to developing countries?at 7% or more, about one-sixth of the total reduction.

According to the government proposal, if the NDC is set at 35%, domestic reductions account for 32.8%, and overseas reductions 2.2%. If the NDC is raised to 40% or more, domestic reductions remain at 32.8%, while overseas reductions must be set at 7.2% or more to meet the target, and discussions have proceeded in this direction.

The government judged that expanding overseas reductions is inevitable because an NDC of 32.5% is seen as the margin line for the industrial sector to achieve carbon reduction without artificial production cuts. Prime Minister Kim Boo-kyum mentioned during the economic sector government questioning session at the National Assembly the day before, "The industry says that even a target in the low 30% range requires enormous investment to enable change," conveying the industry's difficulties.

The burden felt by the industrial sector, especially the steel industry, which is a high carbon emitter, is very large. According to the Korea Institute for Industrial Economics and Trade, domestic steel demand is expected to increase from the current 72 million tons to 75 million tons by 2030. Since hydrogen reduction steelmaking technology, which produces molten iron using hydrogen instead of coal, aims for commercialization by 2050, achieving carbon reduction in the short term is practically difficult. The Korea Iron and Steel Association recently requested the Carbon Neutrality Committee to carefully consider raising the NDC, stating that "additional reduction capacity by 2030 is extremely low," for this reason.

◆Japan and Switzerland also recognize overseas reductions in NDC＝There is opposition, mainly from some environmental groups, arguing that the government tries to easily gain recognition for reduction efforts in developing countries by leveraging technological superiority and capital without domestic carbon reduction efforts. However, based on the government proposal submitted to the Carbon Neutrality Committee last week, a simple calculation shows that the domestic carbon reduction target for 2030 increases from the existing 151.75 million tons to 238.65 million tons, an increase of 86.9 million tons.

Major countries overseas, such as Japan and Switzerland, also reflect overseas reductions in their NDCs. Japan raised its 2030 NDC in April from a 26% reduction compared to 2013 to a 46% reduction, setting the overseas reduction portion at 7% or more. The Joint Crediting Mechanism (JCM) is Japan’s representative overseas carbon reduction project. It has been implemented since 2013 to promote low-carbon green technology in developing countries and secure overseas reduction achievements. As of April this year, it is conducting 65 carbon reduction projects with 17 developing countries. Through this project, Japan has reduced a total of 939,150 tons of carbon until last year, and both Japan and the respective developing countries include these reductions in their targets and use them to achieve their NDCs.

Switzerland also set a goal to achieve 12.5% of its 2030 carbon reduction target (30% reduction compared to 1990) through overseas reductions. The Swiss Federal Assembly approved a carbon law amendment last year stipulating that 75% of carbon emissions will be reduced domestically and 25% overseas. The Paris Agreement, which forms the binding basis of the 2030 NDC, also recognizes overseas reductions using bilateral cooperation and the Sustainable Development Mechanism (SDM) under Article 6.

The ball is now in the Carbon Neutrality Committee’s court. The committee plans to finalize the 2030 NDC next month after internal discussions based on the government proposal. Both the NDC figures and the overseas reduction portion depend on the committee’s decision. President Moon will announce the final 2030 NDC at the United Nations Framework Convention on Climate Change Conference of the Parties (COP26) held in November.

Professor Cho Yongsung of Korea University’s Department of Food Resource Economics, who participates as a private member of the Carbon Neutrality Committee, said, "If the government tries to easily achieve the NDC overseas through capital and technology transfer without domestic reduction efforts, it deserves criticism. However, after fulfilling maximum domestic reduction efforts, carbon neutrality can be realized through international cooperation," adding, "Since overseas technology transfer and financial support for carbon reduction in developing countries align with the global climate crisis response purpose, expanding the overseas reduction portion is worth considering."

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