"Achieving the 2050 Carbon Neutrality Goal Depends on SMEs"

Jungjingong Policy Newsletter, 'KOSME Jeongchaegiji' Issue 6 Published

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 5th that it has published the 6th issue of the policy newsletter 'KOSME PolicyⓔKnowledge (Easy)', which contains strategies and policy directions for small and medium enterprises to respond to achieve carbon neutrality goals.

SBC analyzed that supporting small and medium enterprises is crucial to achieving the 2050 carbon neutrality target. As of 2018, greenhouse gas emissions from businesses with fewer than 300 employees amounted to 108 million tons, accounting for about 30% of carbon emissions in the industrial sector.

SBC proposed the following key support measures for realizing carbon neutrality in small and medium enterprises: ▲support for energy efficiency through process innovation ▲strengthening support for business transformation of companies related to carbon neutrality ▲support for fostering companies in the renewable energy sector ▲raising awareness of carbon neutrality among small businesses ▲and integrated online and offline support platforms.

In particular, to reduce carbon emissions, SBC emphasized the need to support the establishment of carbon-neutral smart factories that can convert high carbon-emission processes into low-carbon processes, and to strengthen support for business transformation for companies facing inevitable changes in their existing business areas due to the phase-out of internal combustion engine vehicles and climate crisis issues. They also proposed support for startups in the renewable energy sector and expanding facility investments for carbon neutrality implementation through the establishment of a climate crisis response fund. Additionally, considering that the impact of carbon neutrality varies by industry, sector, and company size, they analyzed that tailored support by industry and size based on detailed impact analysis of small businesses would be helpful.

Furthermore, for small businesses that find it difficult to respond individually to the rapidly changing global business environment, SBC suggested conducting awareness improvement education on the trends and necessity of carbon neutrality. According to SBC’s survey results, 80.6% of companies recognize the need to respond to carbon neutrality, but only 15.1% are prepared.

Chairman Kim Hak-do stated, "Considering carbon border taxes, bans on the sale of internal combustion engine vehicles, and the legislation of carbon neutrality, carbon neutrality has now become an issue directly related to export competitiveness and, ultimately, the survival of companies," adding, "SBC will spare no effort to support small and medium enterprises in realizing carbon neutrality through net-zero funds and projects to establish carbon-neutral smart factories."

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