To Profit from Used Batteries, 'Policy-Technology-Finance' Trio Must Be in Place

Sangui Holds 'ESG Management Forum' to Discuss ESG Issues

It has been suggested that ESG (Environmental, Social, and Governance)-based new businesses could be a breakthrough to overcome the global economic downturn, and that this is possible only by having three elements: policy, technology, and finance.

The Korea Chamber of Commerce and Industry (KCCI), together with the Ministry of Trade, Industry and Energy and EY Han Young, held the 14th KCCI ESG Management Forum online on the 28th at the KCCI Hall in Seoul, discussing recent ESG issues and implications, including strategies for creating ESG-based new businesses.

Jaeheum Park, Executive Director at EY Han Young, who presented on the "Strategy for Creating ESG-Based New Businesses," said, "Amid the recent global economic slowdown, raw material prices are soaring and environmental and social trade barriers are strengthening. Entering new businesses related to ESG can be a new breakthrough to overcome this era of uncertainty."

Park added, "The global environmental market is expected to reach about 2,300 trillion KRW by 2030. Recently, five attractive ESG new business areas have been identified: circular economy, eco-friendly energy, secondary batteries, eco-friendly transportation, and CCUS (Carbon Capture, Utilization, and Storage) technology." He continued, "Since these markets are still in the early stages and have immense growth potential, companies should identify ESG business sectors closely related to their business models and actively invest in acquiring capabilities in the short term through M&A, joint venture establishment, and other means."

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, is delivering the keynote speech at the 5th International Seminar on Carbon Neutrality and Energy Policy held on the afternoon of the 3rd of last month at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, attended by Prime Minister Han Duck-soo.
[Photo by Yonhap News]

He stated, "In the case of the circular economy, which recycles resources, the plastic recycling market is expected to grow at an average annual rate of 17%, and the battery recycling market at 21% annually until 2030, showing high market potential. Therefore, our companies are paying attention to these as new sources of revenue."

Professor Jiyong Eom of KAIST, who presented on "Trends and Implications of ESG and Carbon Neutrality-Related Technologies," explained, "Carbon neutrality requires a comprehensive and rapid transformation of our economy, and securing climate tech (all innovative technologies contributing to carbon emission reduction and climate adaptation) is key to achieving this." He added, "McKinsey forecasts that the transition to carbon neutrality will require an average annual investment of $9.2 trillion by 2050, of which $6.5 trillion will be invested in low-carbon technologies."

He advised, "To succeed in the climate tech-based carbon neutrality transition, the three elements of policy, technology, and finance must align: policy must lead, technology must push, and finance must facilitate. The government's consistent carbon pricing policy should drive demand for climate tech investment, private sector climate tech development should enhance both policy feasibility and industrial competitiveness, and financial innovation from both government and private sectors should supply the necessary funding."

Lastly, Jongik Lee, CEO of Korea Social Investment, who presented on "Trends and Implications of ESG Venture Startups," said, "Although ESG venture startups are increasing, the climate tech sector, including carbon reduction and energy saving, is particularly gaining attention." He added, "According to data from the global research firm HolonIQ, climate tech venture investment reached about $70.1 billion last year, an 89% increase from the previous year, and this trend is expected to continue for the foreseeable future."

Lee emphasized, "For Korea to lead the global market in the climate tech sector, many startups must emerge, and for this, open innovation by large corporations or dedicated funds must be activated. The government should designate climate tech as a key growth industry and actively invest in and support building a related ecosystem jointly with the private sector, including large corporations and financial institutions."

Woo Taehee, Executive Vice Chairman of KCCI, who presided over the meeting, stated, "There is a lot of interest and capital flowing into ESG-related new businesses, especially in the eco-friendly market sector. Companies should now move beyond simply adopting ESG and utilize it to discover business models and pioneer new markets."

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