Choi Tae-won: "Carbon Reduction is a Matter of Corporate Survival... Incentives for Companies Needed"

2nd Carbon Neutral Industry Dialogue Promotion Committee Meeting

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry (fourth from the left), and Moon Seung-wook, Minister of Trade, Industry and Energy (third from the left), are taking a commemorative photo with the attendees.

[Asia Economy Reporter Choi Dae-yeol] Chey Tae-won, Chairman of the Korea Chamber of Commerce and Industry, said on the 17th, "Carbon reduction is becoming a practical 'matter of survival' for companies."

Chairman Chey made this remark ahead of the 2nd Carbon Neutral Industrial Transition Promotion Committee meeting held that day, noting that direct and indirect pressures for carbon reduction have been intensifying recently both domestically and internationally. This committee is a consultative body formed in April to discuss carbon neutrality implementation plans between the government and the private economic and industrial sectors, and the second meeting was held on this day. It was organized to gather corporate opinions ahead of the government's announcement of support measures for industrial carbon neutrality scheduled for next month.

He cited several points, saying, "Korea is a country highly dependent on trade, so it is necessary to view the carbon neutrality issue from a global perspective," adding, "The United States and the EU are expected to soon implement trade regulations through the Carbon Border Adjustment Mechanism; global companies are demanding carbon reduction from domestic companies within their supply chains, and accordingly, small and medium-sized enterprises cooperating with large corporations are unlikely to be exceptions; furthermore, global investment institutions are pressuring for carbon neutrality practices."

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry (second from the right), Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy, and others attended the 2nd Carbon Neutral Industrial Transition Promotion Committee meeting on the 17th.

Since it is a challenging task for individual companies, Chairman Chey expressed concerns about the recent carbon neutrality trend but emphasized that it is a clear trend at the international level that cannot and should not be avoided. He said, "Although there were differences in positions between developed and developing countries at the recent COP26 meeting, over 120 countries declared achieving carbon neutrality by 2050, and 450 financial institutions worldwide formed an alliance, accelerating the international community's response and cooperation to the climate change crisis."

He believed that for private companies to accept carbon neutrality more actively, it is necessary to create conditions that allow companies to perceive it positively rather than from a regulatory perspective. Since Korea is somewhat behind compared to developed countries, it needs to act more swiftly. Chairman Chey said, "For companies, the goals are high and the costs are significant, so they may only repeat that it is difficult and postpone or refuse it," adding, "Providing more incentives to companies that excel in carbon reduction to promote the development of innovative carbon reduction technologies could be one example."

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