Samsung and MS Both Say "Expanding Power Grids First for Corporate Decarbonization"

CF Yeonhap International Conference Held
"Mutual Certification Systems Between Countries Also Needed"

Minister Andeok Geun of the Ministry of Trade, Industry and Energy is delivering a congratulatory speech at the "2024 CF Union International Conference" held on the 18th. 2024.12.8. Photo by the Ministry of Trade, Industry and Energy

Companies unanimously agreed that the urgent expansion of the insufficient power grid is the most critical factor in achieving decarbonization. They also emphasized the need to secure sufficient carbon-free energy sources and to integrate the differing certification systems between countries.

At the '2024 CF Alliance International Conference' hosted by the Korea Chamber of Commerce and Industry and the CF Alliance, and supported by the Ministry of Trade, Industry and Energy on the 18th, Eboram Lee, Executive Director of Samsung Electronics DS Sustainability Management Office, stated, "Electricity demand continues to increase due to the expansion of the Pyeongtaek campus and the establishment of the Yongin semiconductor cluster," adding, "The biggest challenge is that there are not many means to secure renewable or carbon-free energy domestically."

Carbon-Free Energy (CFE) is a concept that encompasses renewable energy such as solar and wind power, as well as nuclear power plants, clean hydrogen, and carbon capture, utilization, and storage (CCUS).

Executive Director Lee said, "For companies to utilize carbon-free energy, the expansion of the national power grid is paramount," and added, "Due to the limited power grid, accessibility to carbon-free energy is low, and the entire industrial sector faces restrictions in next-generation businesses."

In fact, it is estimated that by 2050, when the Yongin semiconductor cluster is completed, a total of 10 gigawatts (GW) of electricity will be required. To supply this smoothly, it is necessary to expand transmission networks that can connect to various carbon-free energy sources.

Executive Director Lee also emphasized the need to establish an internationally recognized inclusive regulatory framework and a cooperative system among key industries.

Regarding corporate decarbonization activities, the Renewable Energy 100 (RE100) campaign, currently conducted at the private sector level, is well known but not internationally standardized. In Europe, the Carbon Border Adjustment Mechanism (CBAM) separately calculates carbon emissions by product.

South Korea proposed the 'CFE Initiative' to the international community last year and plans to establish a formal certification system next year. From a corporate perspective, there are difficulties in complying with different certification systems by country and institution.

Heesik Yoon, Director of Policy Cooperation and Legal Affairs at Microsoft (MS), also presented three challenges to achieving carbon neutrality in the Asian region during the conference: expansion of the power grid, energy prices, and choice of carbon-free energy sources. Director Yoon emphasized, "To proactively distribute the power grid, it is necessary to shorten the approval process and build new transmission networks."

Yoonki Ahn, Executive Director of POSCO Research Institute, said, "From next year, standardization discussions are expected to be actively conducted under the United Nations Framework Convention on Climate Change (UNFCCC), Climate Club, World Trade Organization (WTO), Global Sustainable Steel and Aluminum Agreement (GSSA), and International Organization for Standardization (ISO)," explaining, "Establishing mutual certification systems among these standards will be key to the decarbonization ecosystem."

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