Government to Support Textile Companies with Up to 100 Million KRW for Low-Carbon Equipment Replacement

Recruitment of Companies Participating in Low-Carbon Foundation Projects

The government will provide up to 100 million KRW in support to textile companies aiming to replace old equipment that emits a large amount of carbon.

The Ministry of Trade, Industry and Energy announced on the 7th that it will recruit participating companies for the "2024 Textile Material Process Low-Carbon Foundation Project" to promote low-carbon transition in the domestic textile industry.

The textile industry is one of the major greenhouse gas (carbon dioxide) emitting sectors in manufacturing, following steel, petrochemicals, minerals, and cement. In particular, more than half of the carbon emissions come from the fabric manufacturing and dyeing processes. Equipment such as air compressors, dyeing machines, dryers, and tenter frames (machines that stretch fabric width taut to dry or iron and produce fabric) are representative high carbon-emitting facilities.

Recently, global textile fashion companies have been demanding high standards of low-carbonization, but most domestic textile companies are small and micro enterprises, making them vulnerable to such demands. The textile industry has a high proportion of micro-enterprises with fewer than 10 employees, accounting for 88.6%.

In this regard, the Ministry of Trade, Industry and Energy decided to support small and medium-sized enterprises with 70% of the costs and large enterprises with 50%, up to a maximum of 100 million KRW, for low-carbon equipment replacement in textile companies. Through this project, the government expects to support more than 22 textile material companies and reduce greenhouse gas emissions by 8,932 tons.

Selected companies can receive consulting from carbon reduction experts, and if desired, can also obtain a certificate verifying the carbon reduction effect.

For more details, please visit the Ministry of Trade, Industry and Energy website and the Korea Textile Export & Import Association.

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