[Asia Future Business Forum] Achieving 'Net Zero'... Two Proposals by Chey Tae-won

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, Proposes for Net Zero Achievement
"Carbon Neutral Incentives Should Be Expanded to Enable Market Mechanisms Rather Than Regulations"
"Government and Private Sector Need to Collaborate to Advance the 'Golden Cross' Timing"

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry (Chairman of SK Group), is delivering a congratulatory speech at the '2022 Asia Future Business Forum' hosted by Asia Economy at the Western Chosun Hotel in Jung-gu, Seoul on the 27th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Moon Chaeseok] "From the perspective of a Chief Executive Officer (CEO), if a system is designed so that the more carbon is reduced compared to competitors, the greater the investment benefits and brand value become, completely different behaviors will emerge. It is necessary to expand carbon neutrality incentives so that market mechanisms operate rather than regulations. The government should work together with the private sector to consider ways to bring forward the 'golden cross' point where investment benefits exceed carbon neutrality investment costs."

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, emphasized the importance of expanding carbon neutrality benefits and public-private cooperation to practice net zero during his congratulatory speech at the 10th 2022 Asia Future Business Forum held on the 27th at the Westin Chosun Hotel in Sogong-dong, Seoul, under the theme "Net Zero is the Future."

Chairman Choi stated, "Carbon neutrality is not only a response to climate change but also an opportunity that can become a pillar of growth for both companies and the nation, so there is a need to change the perspective of the Korean economy toward carbon neutrality." He added, "The key is to induce corporate action, and to do so, carbon neutrality must be approached by companies not as a regulation but as an opportunity for growth."

Chairman Choi diagnosed that approaching carbon emissions as a 'cost' through taxes or emission permits would have limitations in encouraging corporate response. While regulations cannot be outrightly deemed wrong, he emphasized that as regulatory intensity increases, the scope of incentives must also expand to maintain a 'balance.'

From a corporate standpoint, the idea that "the more carbon emissions are reduced, the more business opportunities will open" should be shared by companies themselves through cooperation between the public and private sectors.

He said, "The reason why the industrial and economic sectors are reluctant toward carbon neutrality is that forced participation through methods such as taxation reduces corporate motivation. Thinking of carbon neutrality as something to be avoided by companies is precisely the result of implementing policies within the 'regulatory framework.'"

He continued, "If the perception arises that reducing carbon emissions more than before results in corresponding incentives, companies will consider 'how much we need to reduce and what rewards we receive for further reductions,' leading them to invest more and find solutions faster," explaining, "This means behavior changes and the dimension of investment shifts."

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry and Woo Byung-hyun, CEO of Asia Economy, along with other guests, are having a conversation ahead of the '2022 Asia Future Business Forum' hosted by Asia Economy on the 27th at the Western Chosun Hotel in Jung-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

He went on, "CEOs will encourage 'reducing carbon emissions even a little more,' and as this atmosphere spreads, socially, who gains more benefits will become a point of pride," suggesting, "It is necessary to expand incentives so that market mechanisms operate rather than regulations in the process of realizing carbon neutrality."

Chairman Choi also stated that a joint private-sector plan should be prepared to bring forward the 'golden cross' point where carbon neutrality investment benefits surpass costs from the perspective of both companies and the nation.

He said, "There is a need for the public and private sectors to find solutions together on 'how large the carbon neutrality market is and how much funding should be invested in which projects effectively,'" adding, "From the government's standpoint, carbon neutrality involves allocating budget resources, so through cooperation in the allocation process, the public and private sectors will jointly consider 'what and how much to invest to maximize effectiveness.'"

He also emphasized a success strategy for the golden cross. He said, "The golden cross is the point when carbon investment benefits exceed carbon costs," and added, "Since Korea is in a position to increase investments related to carbon neutrality, it must consider ways to bring forward the 'golden cross.' If successful, Korea will overcome initial costs, lead the net zero agenda, and achieve economic growth."

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