Full-Scale Support for Technology Development and Facility Investment in Carbon Neutrality Response for SMEs

Development and Dissemination of Low-Carbon New Technology Best Practices by Carbon-Intensive Industries

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[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young, hereinafter referred to as the Ministry) announced on the 25th that it will publicize three projects supporting the development of core technologies and facility investments necessary for the carbon-neutral transition of small and medium-sized enterprises (SMEs) and hold a business briefing session on them.

Since announcing the 'Support Plan for SMEs' Carbon Neutral Response' last December, the Ministry has invested 447.7 billion KRW in the carbon-neutral budget this year to support the low-carbon transition of SMEs and venture companies and foster innovative ventures and startups in the green sector. The three projects announced this time are the Development of Leading Carbon Neutral Models for SMEs, the SME Net-zero Technology Innovation Development Project, and the SME Carbon Neutral Transition Support Project.

First, the Development of Leading Carbon Neutral Models for SMEs is a new project this year that supports the development of exemplary low-carbon new technologies applicable commonly within high carbon-emitting industries among SMEs. Based on technology demands identified through private R&D councils, related research institutions, and general SMEs, it supports the development of core carbon-neutral technologies needed by industry. The selected consortiums of SMEs and research institutions will receive up to 2 billion KRW in technology development funds over two years.

The SME Net-zero Technology Innovation Development Project supports joint technology development between promising SMEs and venture companies and research institutions possessing original technologies to foster promising companies in low-carbon emerging fields. The selected consortiums of SMEs and research institutions will receive technology development funds ranging from up to 1.5 billion KRW (for item-designated projects) to 3 billion KRW (for designated open-call projects) over three years. To promote commercialization and continuous growth after development, dedicated funds and follow-up investments will be linked and supported.

The SME Carbon Neutral Transition Support Project targets SMEs urgently needing low-carbon process transitions, such as export companies in countries considering the introduction of carbon border taxes, suppliers to large companies declaring carbon neutrality, and companies operating in high carbon-emitting industries. With a budget of about 2 billion KRW, it plans to support up to 300 million KRW for greenhouse gas reduction facility investments for 20 SMEs. Although these SMEs are not subject to reduction regulations, this project supports voluntary investments in greenhouse gas reduction facilities, filling support gaps and expected to serve as a catalyst to induce low-carbon process innovation in SMEs.

Won Young-jun, Director of Technology Innovation Policy at the Ministry, said, "In preparation for the European Union's Carbon Border Adjustment Mechanism, which will be piloted from 2023, and the strengthening of carbon management in global large companies' supply chains, proactive responses from SMEs are necessary." He added, "We will establish a multifaceted support system so that SMEs can participate in achieving carbon neutrality by 2050 and actively respond to the changing environment."

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