Economic circles: "Deregulate new industries and startups to achieve carbon neutrality"

Sangui, Publication of Carbon Neutrality Strategy Report

The business community has presented 100 key policy tasks for the implementation of carbon neutrality in our economy. These tasks cover various sectors including the electricity market, energy systems, emissions trading, finance, and taxation.

The Korea Chamber of Commerce and Industry (KCCI) published the "Carbon Neutrality Strategy Report for a New Leap in the Korean Economy" on the 11th, containing these details. The report, consisting of two volumes, was delivered to Prime Minister Han Duck-soo at the "International Carbon Neutrality Seminar" held on the 3rd.

The policy decision-making framework and policy tasks proposed in the report were developed through communication and deliberation with diverse stakeholders including businesses, government, citizens, and civil society over four seminars.

Volume 1 introduces the policy decision-making framework based on "3 Principles and 9 Strategies," suggesting that it can contribute to resolving obstacles to achieving carbon neutrality such as carbon pricing, reduction methods, and implementation systems.

The three principles are ▲strengthening policy tools utilizing market principles ▲promoting carbon neutrality based on science and technology ▲restructuring low-carbon investments and incentives. The nine strategies include △restructuring the national energy system △improving electricity market operation efficiency △revitalizing the emissions trading market △strengthening industrial competitiveness △eco-friendly and low-carbon technological innovation △expanding research and development (R&D) and proactive technology commercialization △activating climate finance △improving resource circulation systems △and establishing a democratic decision-making foundation.

Professor Cho Hong-jong of Dankook University explained, "In the long-term process of transitioning to a low-carbon economy, we must leap forward as a leading country in carbon-neutral technology through comprehensive institutional design utilizing markets, science and technology, and incentives, and there is a need for in-depth discussions on funding procurement."

Volume 2 selects and presents 100 key policy tasks requiring improvement by sector. These include electricity market and system reforms, energy system innovation, emissions trading system revitalization, strengthening industrial competitiveness, expanding R&D investment, reduction in buildings, transportation, and public sectors, establishing a circular economy, finance and taxation, voluntary carbon markets, public participation, and just transition.

Furthermore, the report emphasized, "It is important to create an economic environment where companies can actively act as problem solvers," and stressed the need to implement policy tasks related to fostering startups in new energy industries and distributed energy sectors, building electricity demand management infrastructure, and establishing a foundation for the battery recycling industry.

Woo Tae-hee, Vice Chairman of KCCI, stated, "Carbon neutrality should be understood not merely as a destination but as a successful transition process," adding, "Amid the restructuring of the global economic order, Korea must expand its global leadership in responding to the climate crisis based on comprehensive policy design considering markets, technology, and systems, and the execution of concrete policy tasks."

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