[Initial Insight] Is the 40% Carbon Reduction by 2030 an Unrealistic Sudden Acceleration Ignoring Reality?

[Asia Economy Reporter Kim Jong-hwa] News related to carbon neutrality is swirling like a typhoon. The eye of the typhoon is the government. It is sending a strong message that carbon reduction must be achieved.

On the 29th of last month, Prime Minister Kim Boo-kyum visited the Hydrogen Fuel Cell Demonstration Center in Ulsan and stated, "The government will promptly hold the 4th Hydrogen Economy Committee meeting and prepare the '1st Basic Plan for Hydrogen Economy Implementation' linked to 2050 carbon neutrality."

On the same day, Lee Kyung-soo, Director General of the Science and Technology Innovation Bureau at the Ministry of Science and ICT, met with companies participating in the carbon neutrality private research and development (R&D) council and announced support of 55.1 billion KRW for related technology development. In the industrial process innovation sector, 24.4 billion KRW was allocated to five projects in steel, cement, and petrochemical fields; 21.2 billion KRW to four projects in the carbon capture, utilization, and storage (CCUS) sector; and 9.5 billion KRW to three projects in the renewable energy sector, including solar power and hydrogen.

Internationally, Korea also presented its direction. At the '26th UN Climate Change Conference of the Parties (COP26) Summit' held in Glasgow, UK, on the 1st, President Moon Jae-in announced a national greenhouse gas reduction target (NDC) to reduce emissions by 40% from 2018 levels by 2030. At the 25th meeting (COP25) in December 2019, the target was a 24.4% reduction compared to 2017, so this is a significant increase. In the Climate Change Performance Index (CCPI) report released alongside the 25th meeting, Korea ranked 58th out of 61 countries, receiving harsh criticism from the international community. Korea promised to update the 2030 NDC at the next meeting, and this promise has now been kept.

Since active participation of companies in carbon reduction is essential, the government's carrot and stick approach is directed at businesses. However, from the companies' perspective, although the COVID-19 pandemic is gradually stabilizing, the business environment is becoming increasingly difficult due to rising raw material costs and logistics crises. Amid this, they face the unprecedented challenge of achieving high-intensity changes for the unfamiliar goal of carbon reduction within a relatively short period.

As a result, the business community is pushing back, claiming that this target is a sudden acceleration and overspeeding that ignores domestic realities, and they are raising their voices for lowering the target. However, it is necessary to consider whether it is appropriate for a self-proclaimed developed country to be passive in solving global issues, and whether lowering the target after domestic and international declarations would not immediately affect national prestige. Above all, it must be made clear that carbon neutrality is no longer an issue to be dealt with loosely as if watching a fire across the river.

Recently, I read written by Georgina Powell, publisher of the eco-friendly lifestyle webzine . The first chapter was shocking. According to the UN, as of 2019, we have only 11 years left to save the Earth, and if carbon emissions are not regulated and global warming is not stopped during this time, the Earth's temperature could rise by 3 to 4 degrees Celsius by 2100. Global carbon emissions have increased by 640% since the 1950s, and the 1.1-degree temperature rise we have already experienced has caused devastating disasters such as floods and wildfires.

Because the climate emergency is such a huge and complex problem, it often feels easier to wait for someone else to solve it, which paradoxically is the worst situation that prevents us from taking action, as the author points out. It is a crucial time for the government to create a national consensus that carbon neutrality is a "difficult but necessary path" and to work together with the business community to solve their concerns.

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